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Blog : Life Insurance

The Hidden Costs of Permanent Life Insurance

Why policy owners end up paying tens of thousands more than they need to Are Life Insurance Agents Making Recommendations In Their Client’s Best Interests or Their Own? For clients considering purchasing permanent life insurance, the options can be daunting. Life insurance policies address different client desires and understanding the choices available—and the total cost associated with each option—is critical to making a selection t...

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Life Insurance Policy Review Blog

As an actuary who helped to price and analyze policies for a large life insurance carrier, I quickly saw how policy owners end up getting the worst end of the deal. While agents can earn 80% to 100% of the first year premium that policy owners pay for a permanent life insurance policy, nearly 50% of these policies are cancelled within the first 10 years.  As a result, policy owners can pay tens of thousands of dollars for these policies...

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How to Structure Permanent Life Insurance to Surpass Buy Term and Invest Strategies

Buy term and invest the difference is your best bet when it comes to life insurance—unless you find the right product and fund it properly. For high net worth investors looking who already invest in U.S. Treasuries as part of their bond portfolio, properly structuring certain permanent life insurance products can yield higher returns with the same underlying risk. In the absence of finding a low commission product and funding it properly, b...

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How Low Commission Life Insurance Products Maximize Returns

By now we all now the problems with permanent life insurance: low returns and high premium costs. However, these poor returns are largely due to the large commissions paid to agents who sell these policies. In our previous post (see here) we discussed how most life insurance products impose high surrender charges on policy owners if they cancel the policy. They do this in an attempt to recoup the high costs associated with paying the life insura...

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