Life insurance as a retirement plan 5500,what's term and whole life insurance 80c,understanding whole life insurance benefits group - For Begninners

10.09.2014
Sun Life is the third largest life insurance company in Canada in terms of revenue in 2014. Previously, SunTerm was only offered for 10 and 20 year terms, which lacked flexibility for people who required coverage for different periods of time. SunTerm 10 and 15 can be converted to either a SunTerm 20 and 30 policy, without evidence of insurability.
One of the complaints against term insurance is the steep renewal prices, with renewal premiums that can be several times more expensive than the initial term. The table shows that not only is the price jump with the renewal protection rider more reasonable, the insured also saves quite a bit of money.
The business value protection rider allows owners to increase the death benefit as the value of the business increases, which may be suitable for buy-sell agreements and key person insurance. Other changes include extending the expiry age to 85 and conversion age to 75, while the issue ages for each term policy has been extended accordingly. Overall, these changes to SunTerm have made it more competitive and should generate more business for Sun Life.
Subscribe to the AAFS Insurance newsletter to receive up to date insurance related news directly in your inbox! We have to be very clear here: this is not an exhaustive list of the only carriers from which you should ever buy whole life insurance. The list consists of seven carriers that we’ve determined—after extensive deliberation and policy design for prospective clients—are the top contenders for giving you the most potential cash value bang for your incoming premium buck.
Also commonly referred to as One America, which is the parent company’s name, American United Life manufactures a competitive—although somewhat quirky—whole life product. It’s non-direct recognition, making it popular among the Infinite Banking die-hards, and it also includes a unique declining paid-up additions load. Colloquially known as “The Guardian,” this company has a rare commitment to the use of cash value life insurance as an asset. This product is rather focused on death benefit and lags behind Guardian’s much stronger 10 Pay whole life product when it comes to cash accumulation and income generation.
Their 10 Pay product is designed to accept paid-up additions beyond 10 years (a wonderful feature).
You won’t see Guardian strongly recommended by most independent agents for various reasons. We work with them and include them in our recommendations as we truly feel they are a strong contender for cash accumulation strategies. The fact that MassMutual is non-direct recognition and has one of the industry’s highest current dividend rates makes them appear really great on paper, and they have the historical performance to back it up. Surprisingly, they don’t devote much time to outwardly promoting whole life as an asset class. They have a number of brochures that highlight the benefits of whole life as a college funding tool and wealth transfer vehicle, but their efforts are more here and there than the concerted and focused attempt that other companies put forth. MetLife failed to jump on the trend embracing guaranteed universal life insurance and neglected to build a competitive universal life product. However, they dabbled a bit with the variable annuity business, built a decently competitive product, and actually attracted a lot of money to it—perhaps more so because of their name and large distribution network. Despite being a demutualized public company, they’ve kept their participating whole life product, which is a very rare move. They rolled out this product called Promise Whole Life, and suddenly, it looked like Snoopy wanted to play whole life insurance with the big boys. MetLife underwent another renaissance just this year when they showcased three new whole life products all focused on shorter payment periods and better cash performance.
Their paid-up at 65 whole life product is an incredible income generator, and their 10 Pay, though much more restricted with respect to available design features compared to Guardian and MassMutual, is no slouch. We’ve been told that MetLife spent some time recruiting executive talent to reinstate them as a strong contender in the whole life insurance space. Our contention with Northwestern is less about them functionally as a company and more about their undeserved sense of self-excellency and self-importance.
Putting aside the fact that many of their agents tend to be intellectually dishonest with themselves, Northwestern doesn’t manufacture a bad product. Here’s the other thing, and I really wish every other carrier in the industry would send someone to Milwaukee to study this Northwestern jewel: they have incredible customer service.
Whoever built their policy design (aka illustration) software was either pressed for time or got fired halfway through and they decided to go with what they had. Additionally annoying are strange limitations on paid-up additions that seem extremely arbitrary, though we’ve been reassured and have discovered in practice that these limitations are circumventable. One big red flag we’ll note here is that this company and many of its agents are in love with their Prestige Max product.
It sounds great, but like Guardian, Ohio National has both a strange love of one product that really is only so-so for our purposes and a better product that they often fail to mention: Prestige Xcel Plus (and the “Plus” is crucial as that’s the product that can be blended). It’s a nasty product to design due to Ohio National’s terrible design software, but it’s where you want your money if you’re seeking cash accumulation and eventual income generation. The product is incredibly flexible, and as far as we’re aware, it has the most solidly built income-generating features.
Instead, most of their career agents are busy talking about guaranteed universal life insurance and indexed universal life insurance. By now, someone has surely discovered the superior strength of Penn Mutual’s whole life contract—Blease data shows us that the vast majority of their whole life sales come from brokers as opposed to their career agent sales force, which is a very unique statistic when compared to other mutual companies with a career agent system. Their paid-up additions rider is far more flexible than anyone else on the list, and with a proper design, those old worries about being committed to too large an outlay (something that has followed whole life for years) can be put to rest.


If a company isn’t on the list, it’s either because they tend not to focus their whole life product on cash accumulation, or they simply don’t have a product that we’ve seen compete well against these seven.
We’re listing these companies in alphabetical order and not in order of who we think is the best and the worst because such designations really depend on the circumstances of the potential buyer. We don’t necessarily find that one company is always on top, so we can’t categorically declare one better than the other. For now, we wanted to answer one question: Which life insurance companies offer the best products in terms of cash accumulation? We will be updating this list each year, so we’ll be making additions and subtractions as needed. Brandon, As a broker for the last 30+ years and writing with most of the top carriers, I certainly do appreciate the value of WL insurance and even a properly structured and run UL; but your review of Ohio National is not all that accurate. Your willingness to address this and take the time to type up what you did proves that Ohio National is an upstanding company and you are an upstanding individual who assists in making this fact so.
Our biggest problem has been a very loose approach to MEC testing that the home office has communicated to me and others.
As far as stability of the company goes, I don’t think they are going anywhere anytime, soon. Please comment on the Fraternals, particularly Thrivent which has just hugely expanded it’s customer base . They have a rather poor paid-up additions rider with a lot of provisional language that doesn’t appeal to us. One thing is for sure, please don’t base your decision on which policy is best for you by looking at which company has the highest dividend rate.
The name of the Company was Blease Research and the product they sold was called Full Disclosure. I’m also guessing you are unaware of the fact that all of the data collected for these reports were self reported numbers from insurers based on whatever block of whole life business they wanted to report so long as it existed during the time period with no real standard for reporting.
Your list is pretty good, I know why some make the grade, but it would be nice to know why you favor some companies over others, other than policy design.
Design is most critical, however, since this list is purely focused on purchases that seek to maximize cash value. Example, if one were looking to fund an ILIT with whole life insurance, this list is largely useless to him or her. At the moment, we’re working on a more comprehensive review of insurers that we hope to release a little later this year. So, you are a single, unavailable and with no dependents attached.  Your sail through life may be smoother that most since great job and great opportunities are at your grasps, no one to hinder your way. Do you really need a life insurance since you don’t support anyone else and your parents are quite capable on their own?
Ok, fine, you don’t have existing debts.  Lucky for you, the second reason might be applicable for you this time. If above reasons do not ring a bell for you, because you just don’t like others to benefit on your untimely departure. You might still be in perfect health.  You might still don’t have diabetes, hypertension or other chronic diseases you might probably have given a few years’ time, well, that is based on your family history. Doc Pinky is a licensed Medical Physician, Internationally Registered Financial Consultant, Certified Investment Solicitor and Associate Wealth Planner and Estate Planner of the Philippines. Yes, I beg to agree with your statement because for me you need to leave with your own feet especially when your getting older.
I am really impressed along with your writing abilities and also with the format on your weblog. It’s fantastic that you are getting thoughts from this piece of writing as well as from our argument made here. Yes, they will get first with your existing assets, if none, your immediate family members if you don’t have the credit shield they offer in your card. This is an effective way to lengthen the term of the policy without undergoing any further medical tests.
A new and unique solution with SunTerm is to purchase the renewal protection benefit, a rider which guards against this increase at the expense of a higher initial premium.
The partner protection benefit allows business partners to purchase life insurance on surviving partners after death of first insured, without evidence of insurability. The most drastic and potentially game changing move is the addition of the renewal protection benefit, and it will be interesting to see if it will be ported to the other term lengths. Our goal is to find the perfect policy that fits all your needs, no matter the size of your budget.
Hopefully, most of you realized we were just being cheeky on our podcast last week when we declared that it sucked (though we don’t think it’s the answer to all the world’s problems). After giving this subject careful consideration, the time has come for us to make an official list.
They’re surely proud of this feature, but we think it’s actually counterproductive; it creates a serious incentive to delay paid-up additions payments, which will decrease overall cash value growth potential.
In fact, they own a website dedicated to the cause and paid a lot of money to develop a sales tool to compete with the likes of LEAP® and Circles of Wealth® to help their agents articulate the benefits of owning whole life insurance. In order to do this, the policy has to be properly blended to open a higher modified endowment contract premium, but this should be easy for intermediate to advanced agents.
They are direct recognition, but they pioneered the concept and certainly don’t let it drag them down too much. Commonly referred to within Northwestern Mutual circles as their biggest threat, MassMutual has a super competitive product and an incredible reputation in the industry.


They had the whole Snoopy thing going for them, which helps when it comes to branding (although, as we know, branding is the refuge of the weak-minded).
But, they were often ridiculed by the true-blue mutuals for being a public company with a rather lackluster whole life product. We have it on pretty good authority that they designed their Promise 120 product specifically to edge Northwestern out on price—touche, Snoopy.
We honestly didn’t expect a lot out of them, but since the products were new, we placed them into the rotation of evaluated companies—and were we ever surprised.
Their cult-like atmosphere and disdain for other companies, particularly the smaller boutique-types that manufacture really great products, are especially annoying due in large part to the personal preferences of yours truly (some of us think numbers matter more than company kumbaya BS).
It may not be the best as evidenced by our personal review, but its certainly nowhere near the worst, and Northwestern at least places importance on whole life as a strong, low-risk asset.
They manufacture a really great product for cash accumulation purposes, and we’d love to be able to show people what it can do, but unfortunately, we can’t. Still, “Trust me, it works out better than this in practice” is a cold comfort when you are parting with several thousand of your hard-earned dollars each year. On top of that, it comes with this great “preferred loan” provision that reduces the policy loan interest rate to increase your potential income generation. Their career force is sitting on one of the best whole life products for cash value accumulation we’ve seen, and no one there seems to be aware of this fact.
There’s nothing wrong with that, and indexed universal life can certainly be a strong contender for life insurance as an asset class, but their products aren’t as superlative in either of these categories (they used to be but aren’t any more) as they are in the whole life space.
We’d be most comfortable placing anyone’s money with these companies if cash accumulation is the key goal.
For 2013, these are our top contenders for whole life insurance when focusing on cash accumulation or income. Surveys indicate that 71% of our users find our software above average or excellent to use.
These have always paid out with very little hassle, compared to Provident, Unum, Paul Revere et al, a very important reality for my doctor and dentist clients. They do not perform as well as Guardian, but still are a substantial company, certainly financially stronger the Met Life, who are broadly marginal at best. Out of Metlife, Guardian and Mass Mutual, my limited research on google showed that Mass Mutual pays out the highest dividends. That is not a great measure as the calculation for credited dividends varies from company to company. Therefore, it recently announced that starting on February 2, 2015, it will be making improvements to its term life insurance policy, also known as SunTerm. Since proceeds from term insurance is often used to pay off the mortgage, the added terms give consumers an opportunity to match the terms to their amortizations. These conversions must be done before the fifth policy anniversary and will be done on an attained age basis, meaning the premium will be based on the age at conversion, not the original age. If Sun Life sees success with the new product, look for other insurance companies to replicate this benefit for their own term policies.
They may not have written the book on corporate culture, and they may not have written the book on how to build the absolute best whole life product, but they certainly did write the book on how to excel at customer service, and I implore other carriers to take a page from it. It might look like we’ve snubbed certain companies, but the truth is that we’ve looked at them all and made this determination after much deliberation and real-life comparing for prospective clients. I analyzed the top-ten highly rated companies twenty years ago, and concluded that Guardian consistently outperformed year after year, particularly when doing twenty year IRR look backs on Whole Life products.
From your analysis is MassMutual better specially when I am looking at generating as much cash value as possible?
If you’d like to have us evaluate your situation, use the contact us page so that you can speak with us privately with your details.
Besides, there are already types of insurance these days, that the insured can also enjoy his investments.
The change is long overdue, since many of its competitors have offered term-15, term-30 and even term-to-65 for many years now.
The most recent survey of users would suggest that 6% would agree with you that our software sucks! There are several points you make which are valid and indeed would be improvements to our software.
The companies I mentioned above dominate on the 20 year and longer numbers and are also the largest safest (highest rated) players in the field. Be responsible enough not to leave them hanging and need to shell out some money to pay your debts. To give you the summary, buy whole life from Northwestern Mutual, Mass Mutual, New York Life, then Guardian in that order. Also the study has been done for decades and the same companies I mentioned have consistently been at the top. Also, dropping the Plus rider after the 7th year (avoiding some unpleasant MEC complexities) would also merit consideration.



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