14 February 2014 0 Comments

The Cannibalized Whole Life Policy

This is my second entry on the topic of Permanent Life Insurance policies that end up being less than permanent. First I discussed what can go wrong with Universal Life (UL); now I’ll deal with Whole Life (WL).  Whole life insurance policies are intended to provide a level premium—either for life or for a stipulated [...]

11 February 2014 0 Comments

The Less-than-permanent Permanent Policy

You purchased a life insurance policy that you thought was permanent, but now it turns out that it is not…at least not unless you start paying a lot more premium than you had planned.  You probably purchased either a Universal Life (UL) or Whole Life (WL) Policy that is now threatening to implode.  Let’s deal with each [...]

7 February 2014 0 Comments

Building What You Need

You’ve got it all figured out.  You’ve been reading my blogs and want the maximum amount of term insurance you can afford to protect your family.  You know that the longer the duration of the term, the higher the premium.  You also know that life insurance’s main goal is to replace income lost to your [...]

4 February 2014 0 Comments

Want More Life Insurance? Should You Replace Your Policy?

Two years ago you bought a $200,000 ten year term policy.  Now, there is another child on the way so you want to increase your coverage by $150,000 to a total of $350,000.  Your agent tells you you’ll have to apply for a new policy rather than just increasing your current policy.  Why is that, [...]

31 January 2014 0 Comments

When Replacement Is Not Bad

In my last entry I described “twisting” as an unethical procedure used by insurance agents causing you to replace an existing policy with a new one.  But, not all policy replacement is bad.  There are times when it makes sense to replace an existing life insurance policy with a new one.  As long as the [...]

28 January 2014 0 Comments

Beware The Twister!

Chubby Checkers made The Twist a popular dance in the 60’s; a harmless enough activity, save an occasional blown knee.  However, twisting in the parlance of insurance is not harmless and is outlawed by all state insurance Commissioners.  The act of twisting is when an insurance agent causes an individual to replace one insurance policy [...]

21 January 2014 0 Comments

The Life Insurance Review

How often should you review your life insurance program?  If you liken a meeting with your life insurance agent to a trip to the dentist, you will probably approve of my answer:  Once every 5 years is enough unless you have a change in your financial picture. Here are changes in the financial picture of [...]

17 January 2014 0 Comments

Life Insurance Is A Lousy Investment?

A friend recently told my wife that she thought life insurance is a lousy investment.  Here’s my answer to this apparent slam:  Yes, life insurance is a lousy investment.  If you don’t die when the policy is in force, the entire premium you’ve paid is down the toilet. You see, life insurance is insurance, not [...]

14 January 2014 0 Comments

The One Way Street

A Life Insurance Policy is like a One Way Street… in the good sense.  Once a policy has been issued there is no turning back—not for you—but for the insurance company.  When you buy an automobile or homeowner’s policy the insurance company has typically only committed to you for a one year period of time.  [...]

10 January 2014 0 Comments

Should You Wait And See?

You’re age 57, in reasonably good health and your term insurance policy you bought 10 years ago is coming to its end. You figure at this point in your life a $200,000 policy is what you want to carry until the day you die.  Now, if you’ll tell me when that fatal day will arrive, [...]