10 July 2014 0 Comments

Why buy life insurance if you don’t need it?

Not everyone needs life insurance.  If you are single with no one dependent on your income and your liquid assets are more than sufficient to meet final expenses, then you really don’t have a current need for life insurance.  However, the operative word in that statement is current.  Is it possible that some day there [...]

3 July 2014 0 Comments

The Never, Always, Everyone Fallacy

A claim made by the Auto Club referenced in my last blog triggered the topic for this entry.  It was a statement that a particular policy was recommended for all their members.  That falls in line with declarations occasionally made by agents that they never sell a certain type of policy (Whole Life is a [...]

26 June 2014 0 Comments

Misconceptions About Life Insurance (Part 4)

Chances of dying at my young age are slight so I’ll wait until later to get life insurance. Yes, chances of dying at a young age are slight, but that’s why premiums are so low when you are young.  And…if you also have a young family, this is the time when they need protection the [...]

12 June 2014 0 Comments

No B.S.! Just tell me what insurance policy is best

More than once I’ve heard a version of this demand:  Don’t sell me; just tell me in simple language what type of life insurance is the best to buy!  Okay, I hear your frustration.  I’ll try to comply, though without some information on your personal needs and objectives, that’s going to be tough. But, if [...]

29 May 2014 0 Comments

Is a MEC bad? Can it be avoided?

The term “MEC” is an acronym for Modified Endowment Contract.  A MEC is created when the premiums paid in the first 7 years of a life insurance policy exceed certain limits.  Unless you’re an actuary there is no need to know the formulae that defines those limits.  If you are contemplating the purchase of a [...]

16 May 2014 0 Comments

What do you do with the cash?

In my last entry I discussed steps to take when replacing one life insurance policy with another.  Now I’ll cover what considerations there are when a life insurance policy that has cash value is either being replaced or discontinued. Options available to use the cash to continue insurance with the same policy were covered two [...]

14 May 2014 0 Comments

Help! My Life Insurance Premiums are too High!

If premiums for your car insurance are too high, you simply shop the market and if another insurance company beats what you’re paying, you switch.  It’s a pretty easy decision to make.  But, the Life Insurance switch is not so easy.  Aside from the fact that life insurance policies tend to be more complex, it’s [...]

8 May 2014 0 Comments

The Case of the Unecessary ILIT

A few years ago you may have established an Irrevocable Life Insurance Trust (ILIT) in order to provide liquidity for estate taxes.  At the time, the per-person exemption was only $1,000,000 but now the exemption is north of $5,000,000 and due to rise with the CPI.  The life insurance in that ILIT is no longer [...]

6 May 2014 0 Comments

The High Cost of Nicotine Use

If you are a smoker and have been coaxed into looking at life insurance by TV ads showing the low cost of term insurance, you have most likely been very disappointed when you responded to these ads.  Tobacco users pay much, much more for life insurance than those who do not partake.  I covered much [...]

25 April 2014 0 Comments

The Truth About Annuities

The mere mention of annuities among investment advisors can conjure up a myriad of opinions from: they’re a lousy investment—to—what a great tax advantage.  Interestingly, both of these statements might be true.  Of late, the debate has grown louder due to a plethora of Indexed Annuities that seem to promise the best of both worlds—growth [...]