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Added for You - Insurance - Beware of Universal Life Insurance II
Brand building requires an understanding of the industry terms: marketing and advertising. The two terms may seem to mean the same; however, they are not.Marketing is defined as a business function that guides how the needs of the customer are recognized, anticipated, and satisfied. You create a brand (an effective marketing image) by knowing what your customers want, what makes them care about products such as yours, what causes them to take notice your product and commit them to memory, and what makes them choose the products that they do. In order to develop your marketing strategy, you will collect this information d
If you hold the policy until you die, a portion of the death benefit is used to pay back the loan. If you surrender that policy, the cash value is used for that purpose. Suddenly that money isn’t tax-free. Just like you may have to pay capital gains taxes when you sell your home, you will have to pay taxes on the amount of the cas
Many youngsters are completely baffled when they are asked what they would like to do after college. It is a question, which is very commonly asked to which many find no proper answer. This state is not abnormal or a matter of discredit if one finds himself or herself in a similar situation.From a very young age that is from the time a child is admitted to a school he or she is bound in a routine as decided by the authorities of the educational institute. It is by following the routine and the already imposed syllabus that the child has to perform. Thus the practice of self-assessment doesn’t arise as to whether the chil
First of all, I believe that the need for life insurance should be met in the most economical way possible. With universal insurance, where life insurance is combined with investing, you end up paying too much for the insurance while earning too little on the investment. It’s the worst of both worlds. Term insurance allows you to purchase the life insurance you need at a lower cost, while giving you the flexibility and control over your investments.
Universal policies unnecessarily lock you in. You’re committed to paying a high annual premium. For instance, the annual premium on one million dollars of universal life for a healthy, 45-year old non-smoking male is around $8,000. That’s $8,000 each year---for the rest of his life.
On the other hand, the annual premium for one million dollars of 20-year term insurance is about $1400. That’s a difference of $6,600 each year. With universal insurance, most of that additional premium builds the cash value of the policy. But because of administrative and other fees, the amount added to your cash value each year is reduced. By the way, has your agent mentioned there is a way to buy no-load universal life insurance?
Insurance agents tout universal policies as a wonderful investment vehicle. They’re not. Better returns can certainly be found elsewhere. Many of these policies are pitched to people in their prime earning years, most of whom are raising their families.
These investors will earn a far better return by first paying down their debt. That’s a guaranteed return, of up to 20% on credit card debt. For those without debt, any extra money they have is better used for 401Ks, IRAs, etc.
The tax benefits heavily promoted as a major benefit of universal insurance are suspect as well. It’s true that money drawn out of these policies for retirement spending isn’t taxed, but that’s because this money is actually a loan. In essence, you’re borrowing your own money. And since it’s a loan, it has to be paid back.
If you hold the policy until you die, a portion of the death benefit is used to pay back the loan. If you surrender that policy, the cash value is used for that purpose. Suddenly that money isn’t tax-free. Just like you may have to pay capital gains taxes when you sell your home, you will have to pay taxes on the amount of the cash
Although it should look good, the real purpose of a web site is to generate sales or leads for your product or service--anything else is a waste of your marketing budget. That should be in bold type on your Internet marketing strategy.However, there is one catch--you have to get them to your site. You could have an award winning web site design with the content written by a Pulitzer Prize winning author, and you're convinced that people will love it. But will they come?Since 80% of all website traffic comes via the search engines, it is essential to make your website as search engine friendly as you can. You need
Universal policies unnecessarily lock you in. You’re committed to paying a high annual premium. For instance, the annual premium on one million dollars of universal life for a healthy, 45-year old non-smoking male is around $8,000. That’s $8,000 each year---for the rest of his life.
On the other hand, the annual premium for one million dollars of 20-year term insurance is about $1400. That’s a difference of $6,600 each year. With universal insurance, most of that additional premium builds the cash value of the policy. But because of administrative and other fees, the amount added to your cash value each year is reduced. By the way, has your agent mentioned there is a way to buy no-load universal life insurance?
Insurance agents tout universal policies as a wonderful investment vehicle. They’re not. Better returns can certainly be found elsewhere. Many of these policies are pitched to people in their prime earning years, most of whom are raising their families.
These investors will earn a far better return by first paying down their debt. That’s a guaranteed return, of up to 20% on credit card debt. For those without debt, any extra money they have is better used for 401Ks, IRAs, etc.
The tax benefits heavily promoted as a major benefit of universal insurance are suspect as well. It’s true that money drawn out of these policies for retirement spending isn’t taxed, but that’s because this money is actually a loan. In essence, you’re borrowing your own money. And since it’s a loan, it has to be paid back.
If you hold the policy until you die, a portion of the death benefit is used to pay back the loan. If you surrender that policy, the cash value is used for that purpose. Suddenly that money isn’t tax-free. Just like you may have to pay capital gains taxes when you sell your home, you will have to pay taxes on the amount of the cas
Unexpected expenses sneak up on the best of us. Paying these unexpected expenses looks impossible when you are in debt and barely making the payments from month to month. If you're like most, you have to reach for the credit card and then find yourself deeper in debt and farther behind.What do you do about this?The answer for paying unexpected expenses is an emergency savings account.An emergency savings account is a sum of money set aside in an account that is only used for paying any unexpected expenses.Unexpected expenses come in many varieties and range from a roof leak to a job layoff.T
On the other hand, the annual premium for one million dollars of 20-year term insurance is about $1400. That’s a difference of $6,600 each year. With universal insurance, most of that additional premium builds the cash value of the policy. But because of administrative and other fees, the amount added to your cash value each year is reduced. By the way, has your agent mentioned there is a way to buy no-load universal life insurance?
Insurance agents tout universal policies as a wonderful investment vehicle. They’re not. Better returns can certainly be found elsewhere. Many of these policies are pitched to people in their prime earning years, most of whom are raising their families.
These investors will earn a far better return by first paying down their debt. That’s a guaranteed return, of up to 20% on credit card debt. For those without debt, any extra money they have is better used for 401Ks, IRAs, etc.
The tax benefits heavily promoted as a major benefit of universal insurance are suspect as well. It’s true that money drawn out of these policies for retirement spending isn’t taxed, but that’s because this money is actually a loan. In essence, you’re borrowing your own money. And since it’s a loan, it has to be paid back.
If you hold the policy until you die, a portion of the death benefit is used to pay back the loan. If you surrender that policy, the cash value is used for that purpose. Suddenly that money isn’t tax-free. Just like you may have to pay capital gains taxes when you sell your home, you will have to pay taxes on the amount of the cas
Working on the basis that you are dealing with the MAN (the person with the Money, the Authority and the Need) you must very quickly assess if you have a potential prospect or not. In other words can their needs be met by the products and services you have to offer. It may not always be obvious to the prospect that they can use your products but your industry experience tells you that they can. In this instance we are looking for an opportunity to uncover some needs. You cannot create needs - but you can uncover them.The key to uncovering needs lies in good questioning techniques. Questioning is a skill that requi
These investors will earn a far better return by first paying down their debt. That’s a guaranteed return, of up to 20% on credit card debt. For those without debt, any extra money they have is better used for 401Ks, IRAs, etc.
The tax benefits heavily promoted as a major benefit of universal insurance are suspect as well. It’s true that money drawn out of these policies for retirement spending isn’t taxed, but that’s because this money is actually a loan. In essence, you’re borrowing your own money. And since it’s a loan, it has to be paid back.
If you hold the policy until you die, a portion of the death benefit is used to pay back the loan. If you surrender that policy, the cash value is used for that purpose. Suddenly that money isn’t tax-free. Just like you may have to pay capital gains taxes when you sell your home, you will have to pay taxes on the amount of the cas
Do you need more traffic to your web site, and more sales? If you do, then you need to consider an often neglected side of web site promotion which is called forum marketing.Most web sites make use of forums to provide the element of response from user to owner and vice versa. These forums take many forms, and include the standard forums, discussion boards, bulletin boards and currently blogs where the visitors to the web site can leave their comments on the site.Marketing has always revolved around relationships. The basic element of relationship from the aspect of online marketing is to weave an element of trus
If you hold the policy until you die, a portion of the death benefit is used to pay back the loan. If you surrender that policy, the cash value is used for that purpose. Suddenly that money isn’t tax-free. Just like you may have to pay capital gains taxes when you sell your home, you will have to pay taxes on the amount of the cash value that is greater than the amount you paid in premiums.
Last of all, you need to be aware of the tremendous financial incentive agents have in selling universal life insurance policies. Commissions on universal insurance are 70% or more of the first year’s premium, then 5% of the premium each year after.
One of the most egregious sales tactic used to promote universal policies as an investment is that you should take the equity out of your home and ‘invest’ it in a universal life insurance policy. The argument is that your home equity is an asset that should be used, not left dormant. The tax benefits are also touted—the transfer is tax-free, the growth is tax-free and the distribution is tax-free! That’s triple compounding, they say.
Do not fall for this trap. Frankly, those recommending it should lose their licenses. The arguments used to support this scheme are all smoke and mirrors. The tax benefits are bogus, you lose control of your money and the agent earns a big fat pay day.
Nor will the earnings be what you expect. Most of the time you will end up paying more in interest on your home equity loan than you will make in the policy. The distribution is tax-free, but all death benefits paid on life insurance policies are tax-free. So you can leave the equity in your home, buy a term life policy and have the same tax-free distribution benefit.
Have a financial question? Send me an email and I’ll personally respond, free of charge. Go to www.guardingyourwealth.com and click on ‘Ask Jeff’.
SPECIAL REPORT:
Over 80% of equity-indexed annuities purchased in America come from Allianz, which skims billions of dollars per year from unsuspecting folks (most of whom are seniors) all over the country.
Chances are very good that you, or someone you know, has been pitched on this particular product by an agent. In my brand new report (just released), I pull back the curtain on the shady practices being used to pawn this deceptive and deceitful product off on innocent investors.
Click here for your complimentary copy:
http://www.guardingyourwealth.com/SpecialReports/
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