by lucy77 » Tue Apr 14, 2009 06:13 pm
Hello,
Right now I'm thinking to apply for a life insurance. But I'm still wondering, if there's any insurance that also enable us to invest some of our fund in stock share.
If there's one, it will be great. I mean instead of getting a benefit from it we can make our money grow this way.
:lol:
Right now I'm thinking to apply for a life insurance. But I'm still wondering, if there's any insurance that also enable us to invest some of our fund in stock share.
If there's one, it will be great. I mean instead of getting a benefit from it we can make our money grow this way.
:lol:
Posted: Thu Apr 16, 2009 07:25 pm Post Subject:
The odds of a healthy 30 year old male dying before age 60 are slim to none. The real issue here is that nobody ever invests the difference with term. People who are looking to accumulate funds in a VUL often want to dump in extra premium to accumulate tax-free, so the money is already there to be invested. Very, very few people have the discipline to set aside the difference in premium to "invest the rest" when buying term.
Posted: Thu Apr 16, 2009 07:44 pm Post Subject:
The odds of a healthy 30 year old male dying before age 60 are slim to none. The real issue here is that nobody ever invests the difference with term. People who are looking to accumulate funds in a VUL often want to dump in extra premium to accumulate tax-free, so the money is already there to be invested. Very, very few people have the discipline to set aside the difference in premium to "invest the rest" when buying term.
If the chances are slim to none, why buy life insurance? The people for whom I have paid death claims would disagree with that slim to none comment.
I'm far from being a termite. However, I think that the line that people won't "invest the rest" is a b.s. line. If they won't do the investments, why would we think that they would pay a life insurance premium forever? Regardless, a whole life/ term combo will be better than the guaranteed UL policy. The cash surrender value will be higher if the person ever wants to cancel and if the person lives a long time, the death benefit will be higher.
Posted: Thu Apr 16, 2009 07:50 pm Post Subject:
"A U/L funded with the minimum premium is sometimes referred to as a "Power Term" policy. In some cases, this type of plan will be less expensive than a pure term policy - especially when a person's health has drastically worsened, their responsibilities have changed, or their budget won't support keeping a term policy until age 90.
I've found that in order to keep a Power Term policy over a long period of time (20 years or more) a policy owner SHOULD have at least a basic understanding of the product. He/she needs the ability to monitor both the policy's cash value (keeping it just above zero) and ever-increasing cost of insurance. It a delicate balance but it can be done successfully.
It would certainly make sense for an agent to keep in touch with the policy holders and continue to service the policy over that 20 year period, but seriously, how likely is that?"
It should be easy to keep in force without much monitoring since they can now be done on a guaranteed basis. In fact, with these policies, the cash value is often zero. The policies are basically "life time term" or if one wants, they can be designed to stay in force until any age.
Term is designed for temporary needs. If someone is planning to keep a term policy until age 90 or for the rest of their life, they could very easily pay premiums that are higher than the death benefit. If someone wants insurance for the rest of their lives, that portion obviously needs to be permanent coverage.
Posted: Thu Apr 16, 2009 08:03 pm Post Subject:
Posted: Thu Apr 16, 2009 08:04 pm Post Subject:
Posted: Thu Apr 16, 2009 08:44 pm Post Subject:
You are correct. I did not think of the new guaranteed U/L products, nor did I consider the term with an ROP rider. When I was in the field, these products did not exist.
Posted: Tue Apr 21, 2009 02:17 am Post Subject:
Hello,
Right now I'm thinking to apply for a life insurance. But I'm still wondering, if there's any insurance that also enable us to invest some of our fund in stock share.
If there's one, it will be great. I mean instead of getting a benefit from it we can make our money grow this way.
well, i think yes, there have this type of of life insurance with investment plan policy existed. You have take careful consideration when deciding to purchase such type of plan. The insurance company make a plan sound like you will have coverage for all the premium that you paid, but then actually part of your premium fund is used in their investment to stock, and you are not getting to full coverage as you paid. It is just like you actually buying 2 plan one for life insurance, another 1 for invesement plan.
To put it simple, let say you bount $600,000 plan, then you can ask your insurance to do adjustment for the the plan like $400,000 for life insurance and remaining $200,000 for investment plan. The good things of this type of plan is when you having financial problems in future, your investment plan profit can be used to pay for your premium, and wont cancel your policy plan.
Posted: Tue Apr 21, 2009 03:52 am Post Subject:
"To put it simple" Huh?
Posted: Tue Apr 21, 2009 05:48 am Post Subject:
i am confused.if i give $100000 to a life insurance company then what will be return it will be $100000 or more than it.does they will pay me any profit
Posted: Tue Apr 21, 2009 06:42 am Post Subject:
i am confused.if i give $100000 to a life insurance company then what will be return it will be $100000 or more than it.does they will pay me any profit
It depends on your policy, you should only check the terms and conditions with your policy plan before signup for the plan. Different insurer having different plan in their return profit. Some plan may not able to make you in profit, but more to insurance coverage.
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