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  • The White Coat Investor
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    Thats not exactly correct.  no lapse gUL is only the cheapest for the death benefit if you are comparing to the guarantee column or the current illustrated for those other types of policies.  Since we dont know where dividends will be going, you cant actually say for sure that it will be the cheapest.  It depends on bonds/interest rates over the lifetime of the person which in turn changes dividends.  WL would have more CSV then the gUL.   Now if for some strange reason i wanted a DB with no cash value then id probably buy the gUL but i would be betting that interest rates dont improve any time soon.  Of course dividends have been going down for decades and for 2018, nobody has reversed the trend and actually increased the dividend %.  They have either dropped further or stayed the same.  So as an example if someone purchased WL and a non lapse gUL today and magically i put us in a high interest rate environment next year and kept it that way indefinitely then the WL would very likely out perform the gUL on both the death benefit and the CSV since the gUL is sort of “locked in” with todays low interest rate environment.
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    Fair enough. I should have said cheapest guaranteed way to get a guaranteed death benefit.

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  • The White Coat Investor
    replied




    IUL or WL or GIUL, all I am looking for is a permanent solution where I pay a premium now and the other party(insurance company) pays the DB for my kid as promised. I need the peace of mind knowing that my kid will be taken care of. The other party has legal, moral, ethical obligation to provide for my kid for taking my money now. It is not dependent on stock market or bond market or anything else. Government and the insurance industry will make sure that my kid gets the money his daddy intended to give him. Tell me if that’s not true, then is there a meaning to our civilized society?

     

    S&P was around 650 in 2008 and now 2600. It’s safe to bet that it will be between those 2 numbers for many many years to come, isn’t it?
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    It sounds like your main interest is in getting that permanent death benefit. The cheapest way to get a guaranteed death benefit of a specific amount is a GUL- Guaranteed Universal Life. If you need a death benefit that slowly rises more or less with inflation then I'd use a whole life insurance policy. It will cost about twice as much as a GUL.

    Doing IUL or a more typical UL or a VUL just introduces complications, additional fees, and additional risks. If the guaranteed life long death benefit is your need/goal, then I'd stick with GUL or WL.

    You should be able to do that with a single premium. Just remember that the single premium makes it a MEC- so no using it for something other than the death benefit. But focus on what you need, and figure out the simplest way to get that. Don't buy insurance that you don't need.

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  • js4682603
    replied
    Thanks

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  • Hank
    replied
    You're an options trader?  Okay, what asset class do you think the life insurance company has access to that the the rest of the market does not?  How can they magically get better risk-adjusted results than the rest of the market despite the commissions and overhead of running an insurance company?

    If you really need to leave $3M to the kids, then get sufficient term life insurance to cover you until you can build up $3M in net worth.  Whole life or one of its many variants isn't going to get you there quicker and cheaper than term and investing the difference.

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  • js4682603
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    W

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  • js4682603
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    M

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  • js4682603
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    R

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  • js4682603
    replied
    It's

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  • js4682603
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    For

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  • js4682603
    replied
    You do realize companies can change caps, participation rates, and cost of insurance for any reason they want ( and are doing this currently)

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    Yes, I realize that but my understanding is, for only to New Clients. Please tell me it's for only new clients.

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  • js4682603
    replied
    it?

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  • js4682603
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    A

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  • The White Coat Investor
    replied
    Don't know what your premiums would be without having that software. Why don't you ask the person selling it to you?

    Personally, I wouldn't buy IUL under pretty much any circumstances though, so I'm going to answer your second question no.

    How come you find it attractive?

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  • js4682603
    started a topic Single premium life insurance

    Single premium life insurance

    thanks
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