What are investment grade insurance contracts? What are their benefits?
Total Comments: 19
Posted: Thu Dec 17, 2009 07:43 am Post Subject:
I get confused so often when it comes to financial vehicles like insurance contracts. The term Insurance Grade insurance contract was probably made popular by Douglas R. Andrew, the famous author of "missed Fortune 101".
I haven't heard of any such thing as "investment grade life insurance". May be such plans (e.g. 7702 plan) are based on these contracts.
Posted: Fri Dec 18, 2009 09:55 am Post Subject:
Yes, you'd need to make sure that your adviser knows more about IGIC than you. Also check out his performance while helping others in the past. A good adviser should possess detailed knowledge in this subject.
Posted: Fri Dec 18, 2009 11:53 am Post Subject:
You guys/gals do realize that you are having a conversation about a term that doesn't really have any meaning.
Posted: Sat Dec 19, 2009 01:06 am Post Subject:
Yup, it'd be better if they renamed this thread to the insurance unicorn.
Posted: Mon Dec 21, 2009 08:22 am Post Subject:
I have boxes of case law regarding life insurance being sold as an investment - or "investment grade life insurance." The courts usually frown on this and most insurance regulators call it "policy misrepresentation."
If someone is actively doing it, please let me know. I have lawyers standing by.
Posted: Fri Jun 04, 2010 03:31 pm Post Subject: IGIC
Wow, a new low for life insurance agents. Just like the sellers of private pension plans (vul contracts) now IGIC's? Come on guys...just call it what it is. A life insurance policy that you put in more than target, get hit hard with a front end premium tax, pay fees that are impossible to comprehend, and if surrendered early (lilke 10 years early) you lose huge. If you want a 50-100% commission, just admit to it and sell the policy but stop misleading people.
Posted: Sat Jun 05, 2010 05:47 pm Post Subject:
The fallacy is that "investment" and "insurance" are like oil and water. They cannot be mixed without a lot of turbulence, and they still end up separating.
Insurance is insurance, investments are investments. One does not "invest" in life insurance they own, they pay premiums for the benefits of the contract. Some contracts have investment options for the cash accumulation, but this still does not make the insurance an investment, it just makes it a registered securities product.
And I agree with BNTRS earlier who would prefer to see the EIUL salespeople have to get their Series 6 registration. Most would be guilty of violating securities laws based on their marketing of the product.
Posted: Fri Mar 02, 2012 10:19 am Post Subject: LoDqoXhjAtWiNXVaMY
Review by M. Keen for Rating: I'm an avid rdeaer and have ordered dozens of books through Amazon, but this is the first one I've taken the time to write a review for, because I believe this book can help others in the same situation I was.I ordered this book when I was applying for Life Insurance, based on the investment strategy in Douglas Andrew's book, Missed Fortune 101 . I wanted to review another reference on life insurance to learn more about it, and to corroborate Andrews' strategy. This is the only other book I could find that discussed LI from a financial investment perspective. This is a very comprehensive book about LI. It's a large book, and so far I've only read portions, skipping around to the areas I needed to understand the type of policy I was applying for, and to justify in my mind that indeed it was the right one for me (I'm working with a financial planner who recommended a particular plan, and has largely focused his practice on Doug Andrews' strategy). This book gave me a lot of the information I needed to ask my agent questions about my policy. In fact, he was impressed with my questions and wanted the name of this book.This is a very easy to read book, with plenty of *understandable* tables as examples. I have also found it to be very objective, discussing the tradeoffs of the different types of policies, and discussing in what personal situations a particular policy might be best. The intent of this book is clearly educational there's no hidden agenda or bias that I can detect. The author has CFP, CLU, and CHFC credentials.Finally, and very importantly, this author stresses the need to manage your life insurance policy over time, as you would any other investment especially the flexible aspects of policies, and including, where necessary, 1035 transfers to a more appropriate policy.
Posted: Fri Mar 02, 2012 12:31 pm Post Subject:
Life insurance is NOT an investment. Stocks, bonds, mutual funds, ETFs, gold, platinum, diamonds . . . those are investments.
Life insurance is not a retirement plan, IRA, Roth IRA on Steroids, or any other such nonsense.
A Kia is not a Rolls Royce.
You can play make believe all you want. Having a CFP, CLU, or ChFC doesn't make the reality any different. Just one more misrepresentation on the pile that has cost the insurance industry BILLIONS in settlements, legal fees, regulatory fines, and other penalties. If you would like the legal citations to the lawsuits that disproved your premise, just send me an email.
Posted: Thu Dec 17, 2009 07:43 am Post Subject:
I get confused so often when it comes to financial vehicles like insurance contracts. The term Insurance Grade insurance contract was probably made popular by Douglas R. Andrew, the famous author of "missed Fortune 101".
I haven't heard of any such thing as "investment grade life insurance". May be such plans (e.g. 7702 plan) are based on these contracts.
Posted: Fri Dec 18, 2009 09:55 am Post Subject:
Yes, you'd need to make sure that your adviser knows more about IGIC than you. Also check out his performance while helping others in the past. A good adviser should possess detailed knowledge in this subject.
Posted: Fri Dec 18, 2009 11:53 am Post Subject:
You guys/gals do realize that you are having a conversation about a term that doesn't really have any meaning.
Posted: Sat Dec 19, 2009 01:06 am Post Subject:
Yup, it'd be better if they renamed this thread to the insurance unicorn.
Posted: Mon Dec 21, 2009 08:22 am Post Subject:
I have boxes of case law regarding life insurance being sold as an investment - or "investment grade life insurance." The courts usually frown on this and most insurance regulators call it "policy misrepresentation."
If someone is actively doing it, please let me know. I have lawyers standing by.
Posted: Fri Jun 04, 2010 03:31 pm Post Subject: IGIC
Wow, a new low for life insurance agents. Just like the sellers of private pension plans (vul contracts) now IGIC's? Come on guys...just call it what it is. A life insurance policy that you put in more than target, get hit hard with a front end premium tax, pay fees that are impossible to comprehend, and if surrendered early (lilke 10 years early) you lose huge. If you want a 50-100% commission, just admit to it and sell the policy but stop misleading people.
Posted: Sat Jun 05, 2010 05:47 pm Post Subject:
The fallacy is that "investment" and "insurance" are like oil and water. They cannot be mixed without a lot of turbulence, and they still end up separating.
Insurance is insurance, investments are investments. One does not "invest" in life insurance they own, they pay premiums for the benefits of the contract. Some contracts have investment options for the cash accumulation, but this still does not make the insurance an investment, it just makes it a registered securities product.
And I agree with BNTRS earlier who would prefer to see the EIUL salespeople have to get their Series 6 registration. Most would be guilty of violating securities laws based on their marketing of the product.
Posted: Fri Mar 02, 2012 10:19 am Post Subject: LoDqoXhjAtWiNXVaMY
Review by M. Keen for Rating: I'm an avid rdeaer and have ordered dozens of books through Amazon, but this is the first one I've taken the time to write a review for, because I believe this book can help others in the same situation I was.I ordered this book when I was applying for Life Insurance, based on the investment strategy in Douglas Andrew's book, Missed Fortune 101 . I wanted to review another reference on life insurance to learn more about it, and to corroborate Andrews' strategy. This is the only other book I could find that discussed LI from a financial investment perspective. This is a very comprehensive book about LI. It's a large book, and so far I've only read portions, skipping around to the areas I needed to understand the type of policy I was applying for, and to justify in my mind that indeed it was the right one for me (I'm working with a financial planner who recommended a particular plan, and has largely focused his practice on Doug Andrews' strategy). This book gave me a lot of the information I needed to ask my agent questions about my policy. In fact, he was impressed with my questions and wanted the name of this book.This is a very easy to read book, with plenty of *understandable* tables as examples. I have also found it to be very objective, discussing the tradeoffs of the different types of policies, and discussing in what personal situations a particular policy might be best. The intent of this book is clearly educational there's no hidden agenda or bias that I can detect. The author has CFP, CLU, and CHFC credentials.Finally, and very importantly, this author stresses the need to manage your life insurance policy over time, as you would any other investment especially the flexible aspects of policies, and including, where necessary, 1035 transfers to a more appropriate policy.
Posted: Fri Mar 02, 2012 12:31 pm Post Subject:
Life insurance is NOT an investment. Stocks, bonds, mutual funds, ETFs, gold, platinum, diamonds . . . those are investments.
Life insurance is not a retirement plan, IRA, Roth IRA on Steroids, or any other such nonsense.
A Kia is not a Rolls Royce.
You can play make believe all you want. Having a CFP, CLU, or ChFC doesn't make the reality any different. Just one more misrepresentation on the pile that has cost the insurance industry BILLIONS in settlements, legal fees, regulatory fines, and other penalties. If you would like the legal citations to the lawsuits that disproved your premise, just send me an email.
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