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What is it called when a insurance policy is paid up?
"Paid up" is actually the terminology used in the insurance industry when describing a policy that no longer requires any premiums. When a policy is "paid up", there are no further premiums required for the policy to continue on for what should be lifetime. This can only occur with permanent forms of Life insurance such as Whole Life, Universal Life and Variable Universal Life.
Universal life insurance premiums tax deductible?
NO. Life insurance premiums would NOT be deductible on your 1040 federal income tax return.
Do you need a security license to see variable universal life insurance?
Yes. To sell variable universal life insurance you will need a Series 63 Securities License, a variable life insurance license, and a regular life insurance license.
What are the four major categories of life insurance?
The four major categories of life insurance are term life insurance, whole life insurance, universal life insurance, and variable life insurance. Term life insurance provides coverage for a specific term, whole life insurance offers coverage for the policyholder's lifetime, universal life insurance allows flexibility in premium payments and death benefits, and variable life insurance allows the policyholder to allocate premiums to investment accounts.
Four Types Of Permanent Life Insurance?
universal variable universal whole variable whole
Can variable universal life insurance be converted into a fixed account?
Variable universal life insurance is not an account. It is a policy that invests in separate accounts in an attempt to earn higher returns than a fixed policy. A variable universal life insurance policy can be converted into a different type of life insurance policy but not a different kind of account.
What is special about variable universal life insurance?
What's special about variable universal life insurance is that it builds cash value. You can read more about this type of insurance online at the Wikipedia website. Once on the page, type "Variable universal life insurance" into the search field at the top of the page and press enter to bring up the information.
What type of life insurance product has variable premiums and face amount?
Universal Life insurance has variable premiums built into the policy (whether traditional Universal Life or Variable Universal Life). However, many people end up paying less than they need to and the policies don't work out the way they planned. If you do a Universal Life policy, make sure you have a trustworthy agent. As for variable face amounts, some term policies have built in options to enable increasing the face amount of the policy at certain points in time. This may also be an optional rider on some policies, but there is a cost to it. This can be a good idea if budget doesn't allow for the appropriate face amount. Often insurance companies will allow you to reduce the face amount of a policy and get a reduced premium. Permanent insurance (Whole Life and Universal Life) have variable face amounts based on dividends and interest that may add to the face amount over time. Feel free to ask more. Brian Lombardo, CPA, Agent
What products are offered by agents under life insurance?
Typical products offered by agents in this market include: whole life products; term products, such as universal, variable, and universal variable life insurance; and annuities
What is variable universal life insurance?
Variable universal life insurance combines the flexibility of a universal life insurance with the investment account features of a variable life insurance.Like variable life insurance, variable universal is considered a security. It can only be sold by agents who have passed the National Association of Securities Dealers (NASD) exam.AnswerVariable life insurance allows you to control your portfolio of investments that is part of the cash value component of a whole life insurance policy. This could include stocks, bonds, or funds. As a result of this freedom, this is the most expensive type of insurance available in the market. Opt for such a policy only if you are completely confident about investing in the markets. While the risks may obviously be higher as there is no guarantee on your savings, the value benefits are also much more than any other insurance policy available.AnswerVariable Universal Life insurance is permanent life insurance that has a cash value feature in it. The cash value is invested in a small selection of portfolios. Since it is invested, there is no guarantee interest and it may lose value. When you pay your premiums, you are paying for three things: The insurance, the cash value, and investment fees. If you know anything about mutual funds, mutual funds have their own annual operating expenses. Since these mutual funds are invested in a life insurance policy, you are paying more than 5% of annual expenses. Therefore, you will get a low rate of return on your cash value.Every year, the cost of the insurance goes up. The insurance part of the policy is annual renewable term. That means more of your premiums is going to the insurance and less toward the cash value. Eventually, you will have to pay higher premiums in the future. If you don't, the policy will eventually lapse as the cash value is depleted.
What does it cost to borrow from a variable universal life insurance policy?
the interest rate is stipulated in writing in the life insurance policy
How does Universal life insurance compare to other top life insurance companies?
Universal life insurance is reasonable compared to other top life insurance companies. However, I prefer Great West Life. I find the customer service to be first rate, the premiums reasonable, and policy options plentiful.
