A guaranteed minimum income benefit could help ensure that when the contract owner is ready to collect retirement income payments, they would be based on a minimum payout base even
if poor market performance lowers the value of the underlying investments.
Not exact matches
If these non-fundamental related motivations drive buyback waves in recent up
markets, we would expect
poorer performance of these.
Rather it is likely that
if such an advantage is achieved, it will be through better - than - average
performance in stable or declining
markets and average, or perhaps even
poorer - than - average
performance in rising
markets» Warren Buffett, Partnership letter 1960
The
performance of a great manager is viewed through the short - sighted prism of the
Market Trader and in this «results business» it is deemed that he should be sacked after the
poor start to the season and,
if he is not to be sacked now, only a top 4 place can keep him in his job for next season!
Lately, I have been studying periods in stock
market history typically known for «
poor performance» to see
if it were possible to craft an intelligent dividend strategy during that time period.
Sorry
if that comes off a bit too happy about the
market's
poor performance.
Because of this,
if you are considering purchasing an IUL it is important to look into the product's projected
performance during periods which feature mediocre or
poor market performance as well as during periods of good
performance.
Policyholders retain full control of the assets covered by the guarantee; however, the contract establishes a guaranteed stream of lifetime income
if the value of the covered account is depleted through withdrawals or
poor market performance.
The products can protect policyholders from
poor market performance as well as offer upside crediting potential
if the
market's
performance improves.
Conversely, these policies can also be more risky
if the
market has
poor performance.
If, however, the
market has
poor performance during a given period, the account is simply credited with a 0 %, protecting principal.
The policy will also automatically terminate
if at any time the Fund Value falls below or become equal to one year's regular premium because of
poor market performance.
Always remember that
if a life insurance policy has a cash value component, it carries a
market risk of potential
poor performance, which could ultimately affect your coverage.
If market performance is
poor, the death benefit may decrease, and / or the policy owner may have to pay higher premiums to keep the policy in effect.