21 August 2014 0 Comments

More Life Insurance Uses for Foreign Internationals

In my last entry I discussed special estate tax needs of Foreign Nationals and how life insurance can be an effective answer.  Aside from estate tax liability, there are also some other uses of life insurance issued by U.S. insurers that are attractive to foreign nationals. International investors often look for safe, secure U.S. based [...]

15 August 2014 0 Comments

The Flexibility of Universal Life

My previous entry dealt with how Universal Life (UL) could be structured to resemble a 20 year term policy.  This is just one of the flexibility features of Universal Life.  There might also be some flexibility in amount of death benefit, but here I’ll deal just with premium flexibility and access to cash value in [...]

22 July 2014 0 Comments

The Permanent Policy With No Cash Value

Whole Life Insurance is the original type of permanent life insurance.  The premium is level, the cash value grows every year and the death benefit is guaranteed for life.  That all makes sense.  How, then is it possible for a Universal Life policy to have a level premium with a death benefit guaranteed for life, [...]

1 July 2014 0 Comments

Something for Everyone Ages 45-85

Recently I received a mailing addressed to me as a member of the Auto Club.  My wife and I were offered life insurance and we didn’t have to take a medical exam and there were no health questions asked.  Within the 5 pages of fine print it was stated that the policy would be renewable [...]

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 [...]

20 May 2014 0 Comments

The Language of Life Insurance

I’m guilty!  There are times when I banter around terms that mean something to me, but are meaningless—or downright misleading—to non-insurance people.  That’s why I included a Life Insurance Terminology tab on this site.  But, even with that assist, much of our “insider’s terminology” needs clarification.  So, here goes on some of those terms that [...]

14 May 2013 0 Comments

IRR – The Finite Comparison Test

IRR is short for Internal Rate of Return.  It can be used as a measure of either the death benefit or cash value of a life insurance policy.  Since the principal purpose of a life insurance policy is to produce a death benefit, that is what I will cover here.  IRR is stated as a [...]