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 [...]

8 July 2014 0 Comments

Should You Consider Selling Life Insurance?

I never set out to be a life insurance agent as evidenced by my college major—Theatre Arts.  But, in 1960 at the age of 25, finding myself unceremoniously relieved of my duties as an assistant TV producer—and finding no other film company standing in line to hire me—I had to find a way to pay [...]

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 [...]

24 June 2014 0 Comments

Misconceptions About Life Insurance (Part 3)

This continues my summary of the most common misconceptions about life insurance. Buying Term Insurance is like throwing your money down a rat hole. It’s true that only the insurance company wins if you buy term insurance and don’t die prior to the end of the term.  Likewise, if you buy fire insurance on your [...]

19 June 2014 0 Comments

Misconceptions About Life Insurance (Part 2)

This continues with my last entry dealing with the most common misconceptions about life insurance. In a family setting only the breadwinner needs life insurance. If there are no minor children or special needs children to care for, then it is probably not necessary to have life insurance on the non-income producing spouse.  But if [...]

17 June 2014 0 Comments

Misconceptions About Life Insurance

There are many misconceptions people have about life insurance.  It’s no wonder; policies can be confusing to the layman and occasionally insurance agents add to that confusion by injecting opinions primarily supported by their desire to make a sale.  But, we all have opinions, so some of mine will be included in my comments.  For [...]

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 [...]

27 May 2014 0 Comments

More Taxes at Death

The American Taxpayer Relief Act of 2012 raised the Federal Estate Tax exemption to $5,000,000 per person (indexed) so many people who had been concerned about liquidity for estate tax were relieved.  However, states also have the ability to impose taxes when their residents transfer assets.  Fourteen states and the District of Columbia have estate [...]

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 [...]