Are you crazy-busy running the day-to-day operations of your insurance agency?
Maybe a little afraid of how this boat would stay afloat if you weren't there paddling like your life depended on it?
Always rushing to meet a deadline or make a deal.
Rarely taking the time to consider what would happen to the agency if you were to ever leave the business...
You may have seen some pretty large industry movement in decreasing cap rates at carriers, especially in regards to Indexed Universal Life insurance (IUL). It seems like this is an industry wide issue and “carrier chatter” is really heating up across the board.
A very basic way to understand how Indexed Universal Life (IUL) credits interest is to think of it like a very simple game where you flip a coin 10 times. There are then two ways to play the game. In Game 1 you win $100 for every head, and lose $100 for every tail. Game 2 awards you $70 for every head, but you lose nothing for every tail.
Tags: IUL (indexed universal life insurance), retirement strategies
Universal Life insurance offers two death benefit options. Most financial professionals know the difference between the death benefit options. However, few understand how structuring the policy correctly can make a significant difference to long-term cash values.
Life insurance provides valuable protection for loved ones. While the primary purpose of pure life insurance protection is to provide a death benefit, many cash-value products offer "living benefits" that you can take advantage of during your lifetime. One major living benefit of cash-value life insurance is access to the cash values in times of need, such as to help pay for a child's education or to help fund retirement.
To amplify the power of Internal Revenue Code (IRC) Section 7702 many producers wonder what is the best way to structure a life insurance policy if given the choice of using either the Cash Value Accumulation Test (CVAT) or the Guideline Premium Test (GPT). For this reason, making the proper choice -- or selecting a product with the specific test more favorable to the plan design -- is an important issue when structuring the policy. The test selected can have a significant impact on premiums, cash values and death benefits.
