by Guest » Fri Sep 14, 2012 11:31 am
Our insurance agent has been making my husband understand that a whole life policy is the best investment option for us. He has convinced Paul to such an extent that, he is considering diverting funds from our 401K. We're both around 50 years. As such, will it really serve the 'retirement' purpose? Possibly not, right?
Posted: Fri Feb 08, 2013 12:42 am Post Subject: bank on yourself
do have any information on this program
they are saying this not only whole life policy
investment . according to founder pamela yellin
bank on yourself.com
e-mail mcdonald57@hotmail.com
Posted: Fri Feb 08, 2013 01:11 am Post Subject:
Bank on yourself schemes are more complex than represented to be. They commonly rely on "vanishing premium" illustrations to "prove" how the "plan" works. Unfortunately, the use of vanishing premium illustrations is unlawful in most states, even though they are printed and handed to prospects every day of the year.
At the very least, any B-O-Y scheme based on some form of life insurance OTHER THAN participating whole life insurance WILL NOT WORK the way it is illustrated. If you are told that after 7 or 10 years, you will never have to pay premiums again, you have been lied to and the agent and insurance agency they represent both need to be reported to the state insurance regulator.
Posted: Thu Apr 11, 2013 06:45 am Post Subject: Whole Life Insurance
The main purpose for buying whole life insurance is to provide cash to your beneficiary when you die and Cash is used to cover final expenses to pay off debt or to ensure that your loved ones have the money to fulfill their needs.
Posted: Sun Apr 14, 2013 04:44 am Post Subject:
Oh the AM PM Life Insurance Forum, the one place I can rely on to pretty much always be the same.
Max, you're being a tad too absolutist here.
Bank on yourself schemes are more complex than represented to be. They commonly rely on "vanishing premium" illustrations to "prove" how the "plan" works. Unfortunately, the use of vanishing premium illustrations is unlawful in most states, even though they are printed and handed to prospects every day of the year.
Your application of vanishing premium is a tad broad, no? Vanishing premium is a recognized sales tactic by the NAIC that involves the use of dividends to reduce premiums under the allusion that this performance is guaranteed. It would be the reason behind illustrations disclosures that speak very clearly about the fact that those illustrated results are projected based on a use of policy dividends to do something that is not guaranteed. This is a direct result of NAIC model regulation on illustration guidelines in an attempt to eliminate real vanishing premium tactics.
Note the subtle difference: an illustration which shows a declining and eventual zero premium with no mention of the fact that this is no guaranteed vs. an illustration that shows this same scenario but does not mention that this is a not a guaranteed function of the contract. The former would be vanishing premium as recognized by the NAIC whereas the latter would not.
At the very least, any B-O-Y scheme based on some form of life insurance OTHER THAN participating whole life insurance WILL NOT WORK the way it is illustrated. If you are told that after 7 or 10 years, you will never have to pay premiums again, you have been lied to and the agent and insurance agency they represent both need to be reported to the state insurance regulator.
How can it be the case that telling someone that they will not have to pay a premium at some point in the future on a non-guaranteed paid up policy absolutely be a lie? There are two problems with your statement:
1. You don't know they are lying, they could just be ignorant (happens a lot)
2. You don't know that what they are suggesting isn't true. A MEC funded policy can easily make use of PUA surrender offset or RPU status to stop out-of-pocket premiums from the owner/insured. We do this all the time and manage several policies under this arrangement, works just fine.
Also, why won't policies that aren't par whole life work as illustrated?
Further, I have to take issue with your depiction of Bank on Yourself. While I'm publicly not a fan, I have an appreciation for accuracy, and I've not known BOY to be heavily dependent on any premium offsets. Quite the contrary, as Pam says you can spend and grow wealthy, which requires not only the planned premium go into the contract, but much much more.
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