Category: Life insurance

The Power of Liquidity: Capitalizing with Cash

(Adapted from an article originally published on Partners4Prosperity.com. Please feel free to share this page at TruthConcepts.com/power-of-liquidity with clients, or see the Content4Clients program for content marketing resources you can use for your own website.) “Success is where preparation and opportunity meet.” – Bobby Unser, Indianapolis 500 Champion Are you locking up your assets, or keeping them liquid? Do you have access to cash on demand? The answer may be influencing your prosperity more than you realize. Most investors focus on the ROI of an investment or a savings vehicle.

Read More

The Truth About Whole Life Insurance Rates of Return

“Is Whole Life Insurance a Good Investment?” Perhaps no question has generated as much controversy on financial blogs and forums as this one. “Typical” advisors and the media-hyped financial gurus say, “Stay away from whole life insurance!” Meanwhile, many passionate agents and advisors try in vain to correct the misconceptions, sometimes stating their own misconceptions, or irritating others who believe their unbridled enthusiasm is motivated only by commissions. Indeed, The White Coat Investor website’s most popular post on whole life insurance (written by a self-appointed, unlicensed financial “expert” who is

Read More

Do PUAs Grow Less Efficient Over Time?

As you know, in the early months and years of a whole life policy, the PUAs are more efficient than the base premium as far as generating cash value for the policy. While the base premium alone can take years to generate a positive internal rate of return where cash value is concerned, the PUAs are converted to cash value right away, which increases the efficiency of the policy overall.

However, after 5-7 years of funding a whole life policy, the impact of the PUAs appears to lessen. Illustrations of a policy funded with maximum PUAs vs. no PUAs at all show that, several years into the policy, the PUAs no longer have a dramatic affect on the internal rate of return of the policy.

Read More

The Whole Truth about Indexed Universal Life, Part 2

By Todd Langford, www.truthconcepts.com Mt. Enterprise,Texas   The Whole Truth about Indexed Universal Life, Part 2 Why not sell (or buy) IUL/EIUL? How is it different from Whole Life? Insurance companies have put numerous pages on the front of Equity Indexed Universal Life (EIUL) illustrations that describe the issues below, but most people (by design) will not take the time to read and understand what these pages are saying.  I would encourage you to read those pages thoroughly before depending on an EIUL policy to increase your assets or protect your

Read More

The Whole Truth on Equity Indexed Universal Life Part I

The Whole Truth about EIUL Part I By Todd Langford   Go here for Part Two of this blog post: https://truthconcepts.com/the-top-10-reasons-not-to-buy-equity-indexed-universal-life One of the major problems with the agents and the companies that sell EIUL (Equity Indexed Universal Life, which is what it was originally called) or IUL (Indexed Universal Life, which is what the industry is now calling it to avoid SEC scrutiny) is the gross negligence in conveying the risks to the clients. All one has to do is carefully read the full insurance illustration or proposal to

Read More

How to tell the whole truth about Direct Recognition.

How to tell the whole truth about Direct Recognition. There are two different methods insurance companies use to handle the loaned cash value — direct recognition and non-direct recognition. In a non-direct recognition company, the earnings rate on cash value is totally unaffected by any loans against cash value. In a direct recognition company, the earnings rates on loaned cash value are affected both positively and negatively when the cash value is used as collateral. Generally, the loaned cash value has a dividend rate that is a certain number of

Read More