Whole Life Insurance

Whole life insurance is a type of Cash Value life insurance that mixes an investment/cash account with the insurance.   The other main type of life insurance is term life insurance which is pure insurance with no cash account.  The debate between Whole Vs Term insurance is the focus of this website.

Whole life insurance is typically 8 to 12 times more expensive per year. According to the Wall Street Journal has a high incidence of clients abandoning their policies.   Because of the costs and complexities whole life insurance is probably not for most Americans.

There are however a couple of great reasons to consider purchasing whole life insurance such as funding special needs trusts and for truly extremely wealthy Americans.   Some people that can not quality for term life though may need to buy a form of whole life as that may be the only option available to them.

If you are considering purchasing any form of life insurance it is best that you check the Financial Strength Rating of that insurer.

The world of life insurance is confusing, do not get lost.

Questions and Answers

Written by Scott W Johnson

Life Insurance Questions and Answers is our list of some salient questions that we have had about insurance. Some specific, some totally random, we have added numerous questions to this list.

Non Participating Whole Life Insurance

Written by Scott W Johnson

There are two types of Whole life insurance contracts: Participating and Non Participating. Neither is necessarily better and both have benefits and drawbacks. In this short article we review one of the forgotten options of whole life insurance- Non Participating Whole Life. Non par policies receive no policy dividends and are hence often less expensive. Another great benefit of these contracts as opposed to par policies is the ease in which someone can shop for them.

Infinite Banking

Written by Scott W Johnson

Infinite Banking generally defined as a financial concept whereby consumers buy dividend paying whole life insurance policies and use the policy contract as your bank. Use it for mortgages, auto loans, etc. Rather than using a typical FDIC insured bank, why not take out a loan from yourself? Sounds like a great concept right? The issue is that numerically speaking this is rather hard to do, especially with whole life raters where they are today. Read our short post about the concept of infinite banking and bank on yourself to consider all aspects…

Lincoln National Life Insurance Company

Written by Scott W Johnson

With a Financial Strength Rating of an A+, from AM Best, Lincoln National Life Insurance is a division of the Lincoln National Corporation. Their NAIC Number is 65676 and they are based in Indiana. Lincoln National is a terrific option for those that want a highly rated term product at a competitive price. Lincoln offers two different term life insurance policies and multiple Universal options. Consider Lincoln for your term life needs.

Convertible Term Life Insurance

Written by Scott W Johnson

Convertible Term Life Insurance is a form of life insurance that allows you to convert it at a later date usually with no further underwriting. There are all sorts of other considerations and terms that must be met. Why convertibles are such a good idea depend on what type of term (soon to be whole life) buyer you are. We find that most clients that are good fits for these products are one of two individuals – Read about these types of people and consider Convertible Terms.

Children’s Life Insurance

Written by Scott W Johnson

Should you buy a kiddie or children’s life insurance policy? When do these sometimes overpriced policies make sense? Our contrarian insurance agent’s viewpoint is not what you might expect to find. Children’s life insurance, sometimes known as Kiddie policies are life insurance policies for under age children. There are two different ways to procure coverage for minors. One is slightly better than the other.

Disadvantages of Universal Life Insurance

Written by Scott W Johnson

A recent article in the Wall Street Journal highlights many of the Disadvantages of Universal Life Insurance. IULs, VULs, and GULs all have major issues with them and we provide you with four of the major negatives that are universal with universal life contracts. Lastly at the end of this short article we reveal what the two best alternatives just may be.

Life Insurance for Retirement

Written by Scott W Johnson

Should you consider Life Insurance for Retirement? There are better and worse ways to use life insurance for and during retirement – Learn the smart options. Once you retire you may longer need a life insurance policy. But how do you know if you are one of these people?

Living Benefits

Written by Scott W Johnson

Living Benefits with Life Insurance? Although the general purpose of life insurance is a death benefit, many insurance policies, even term policies, now allow limited benefits during your lifetime. Although some of these benefits can have significant costs, others can be had for free.

How Much Life Insurance Do I Need

Written by Scott W Johnson

How Much Life Insurance Do you Need? This simple question is much more complex than many american consumers can begin to know. The old general ten times rule is a great place to start but it is not the be all end all determining factor. Clients need to consider and evaluate their life stage and potentially undertake a full needs based analysis.