How good is a universal indexed life insurance policy as an investment vehicle compared to bonds or annuities? - annuities a good investment
It is for the agents who sell them, too big. Get term life, are independent and their families and their own investments.
Friday, January 22, 2010
Annuities A Good Investment How Good Is A Universal Indexed Life Insurance Policy As An Investment Vehicle Compared To Bonds Or Annuities?
5 comments:
Index universal life insurance or equity universal life insurance are very good if you know how to use it.
You must be a need for protection for his family before testing this product for investment. Once you have determined that it is necessary for insurance and some additional investment should consider the possibility that a few extra dollars in the index of life insurance. The reason is that there are some tax strategies to deal with a life insurance than any other investment instruments of Nice are not.
I'm surprised the experts who have given many answers, but let the most important element, which can mean a lot for someone who wants to maintain its tax investment. Perhaps they want to sell a product.
Get up to speed and do not be persuaded that it has something of no importance for their intelligence. Good luck.
It really depends on what is the life insurance index A.
In general condition, the same type of investments that would provide life insurance less results when direct investment is related to the depths of himself. Given the need to raise fees and commissions by the insurer.
I suggest to buy with the money term life insurance (which only pays when you die) and investment, the difference between the premium and universal life insurance in a mutual fund. Most funds can be found in the constructor of the "Sharing" programs, where a small amount (pay $ 50 - $ 250) per month may enroll.
In fact, it sucks ... Here's why you pay fees, and everything depends on how much is hidden in the insurance policy that has given you, but it's there. This match award could be higher or lower than the current rate of change in the saving rate is s. Namely rate = 9%.
IRR = 12%. Just make a huge 3%. Tu = 9% interest. RoR = 7%. They lose only 2%. Tu = 9% interest. IRR = 18%. Finally, it was 9%.
The government reported that the insurance industry, back in the 70 years that life is not an investment! It is a life insurance agent for the state and the illegal or claim that life is an investment.
Moral of the story: Invest on your own. Hold Separate your life insurance and investments. You may be able to invest much more that can invest on their own "forward with confidence.
Life Insurance - all types, not a great investment. Insurance is another type of financial instrument.
Having said this, I'm not a fan of annuities or - how much money the insurance and payment of miserable returns for you.
Of the three, I believe that bonds are the best, but it is a very unbalanced portfolio.
Let's let the return or other "distracted investment" properties of universal life insurance. That's half the truth. The other half of the deaths and the administrative costs of the policy. These costs can generally vary at any given time. If it increases significantly at a time when you borrow against the policy (remember "no income tax free") and their health is low, it is possible that after the payment of taxes on all the mortgage when the policy has failed .
Make a picture in a kind of hypothetical index (5-8% might be useful) to maximum fee. The difference between this example and the same interest rate with current rates, the degree of control over the insurance companies in his contract. These higher costs have nothing to do with corporate stability and financial soundness to do. If it still makes sense in the guaranteed rate, or the feeling of being that much of a risk business, then go ahead.
The insurance must be purchased in favor of the deathfirst. This material is just another, if that happens.
BTW, in most states it is illegal to life insurance business or indexed annuities rather than "investment" "saved" because they are presented as a fixed point index insurance. I'm not saying it is not an appropriate use of these products, but if you the word "investment" in written form, you may be able to preserve this knowledge pigs, some of the street.
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