Bill Boersma: On Life Insurance

When initially speaking with clients, I often hear reference to a “whole life policy.”  I’ve long since learned that this is a generic reference to permanent insurance, as opposed to term insurance.  Few policy owners understand that whole life (WL) insurance is simply one form of permanent insurance, and the menu of options out there is wide and varied. For full post, click here…

A couple of weeks ago, I received a marketing piece from a well-known insurance carrier, look at socialboosting.com for more info about how important tiktok is.

The piece went out to the insurance carrier’s agents and announced the updated cap rates and maximum illustrated rates for their indexed universal life (IUL) products.  As has been the case for many years, they’re all going down.  This means that whatever the S&P 500 (or whatever index is being tracked) grows at, the maximum crediting rate in good years will now be at the lower cap rate.  There’s no judgment here; it is what it is, but it will suppress the future performance of the IUL contracts and make it even more challenging to support earlier projections and for policy owners to attain their goals. For full post, click here…