Sentences with phrase «returns than a whole life»

If the market is doing well, IULs have a higher internal rate of return than whole life.

It has a lower risk than most variable universal - life insurance products, plus the ability to generate significantly higher returns than a whole life insurance policy.

One of the primary advantages to owing an indexed universal life insurance policy is the fact that it allows for a higher return than a whole life or a regular universal life insurance policy.

Variable universal life insurance policies and even traditional universal life insurance policies may provide an even higher rate of return than a whole life insurance policy, but they could also provide a lower rate of return.

In addition, IULs offer potentially higher returns than whole life.

Not exact matches

But, this isn't an apples - to - apples comparison, since whole life insurance is usually significantly more expensive than term life insurance, whereas a return of premium policy is usually only slightly more expensive than a basic term policy (depending on your age and profile).

This is allowed due the payment of whole life dividends which are basically defined as a «return of premiums» to the policy holders rather than regular income.

This gives the cash account in VUL policies the potential for greater returns than a typical whole life policy by investing in equity - linked investments, but also makes them subject to greater risk due to the volatility associated with the stock market.

Plus, you'll likely average a higher rate of return investing that money on your own than in a whole life insurance policy.

Investment returns on whole life insurance are typically lower than other types of permanent insurance, because the insurance company invests the cash value in extremely conservative vehicles, such as bond funds.

Universal Life and Variable Life offer greater flexibility and potentially higher rates of return on investment, but are also more risky as investments than Whole Life Insurance.

With whole life insurance, the guaranteed annual rate of return is lower than you might get with alternative investments, but you may want your child to have a death benefit as well.

But whole life is a complex instrument that is designed to return more than a term life policy to the insurance company.

Frankly, because the rate of return on a whole life insurance cash value is lower than simply investing the money in your retirement account.

In essence, you are right on investing the difference into any save instruments like Bank Deposits, Certain Debit Funds, Government Bonds, Retirement funds etc that would essentially give you more returns than whats promised in the Whole Life Policy.

The theory put forth by these «gurus», such as Dave Ramsey and Suze Orman, is this: families would be better off purchasing term, and investing the savings between the cost of term and whole life into some investment vehicle that would net a much better return than plunking it all down on cash value whole life.

That being said, there are some downsides to whole life insurance including inflexible premiums, surrender charges if the client decides he or she no longer wants the policy, and the rate of return on a whole life insurance policy tends to be lower than other investments.

You can use the money you've saved and invest it, often providing a higher rate of return than any cash accumulation from your whole life policy.

Indexed Universal Life Insurance is a good alternative for those looking for permanent cash value life insurance that has the potential for higher returns than universal life and whole life, but without the risk of variable life, since it is not invested directly into equitLife Insurance is a good alternative for those looking for permanent cash value life insurance that has the potential for higher returns than universal life and whole life, but without the risk of variable life, since it is not invested directly into equitlife insurance that has the potential for higher returns than universal life and whole life, but without the risk of variable life, since it is not invested directly into equitlife and whole life, but without the risk of variable life, since it is not invested directly into equitlife, but without the risk of variable life, since it is not invested directly into equitlife, since it is not invested directly into equities.

Frankly, because the rate of return on a whole life insurance cash value is lower than simply investing the money in your retirement account.

Plus, you'll likely average a higher rate of return investing that money on your own than in a whole life insurance policy.

But, this isn't an apples - to - apples comparison, since whole life insurance is usually significantly more expensive than term life insurance, whereas a return of premium policy is usually only slightly more expensive than a basic term policy (depending on your age and profile).

Internal rates of return for participating policies may be much worse than universal life and interest - sensitive whole life (whose cash values are invested in the money market and bonds) because their cash values are invested in the life insurance company and its general account, which may be in real estate and the stock market.

Whole life policies may also provide a rate of return on the cash value — ignore the death benefit — that is better than the returns on other fixed - income investments that have more risk.

Although a universal life policy can allow you to earn somewhat better rates of return in your cash - value fund than a whole life policy, you can't transfer your cash value between possibly higher - yielding sub-accounts as you can with variable life insurance.

The cash value will fluctuate along with the return of the investments in the account, and the account may be worth more or less than a similar whole life policy.

If you buy a term policy, and invest the difference in premiums (between term and whole life) in an index fund, you will have better investment returns than you would by «investing» through a whole life insurance policy.

Assuming equivalent investment returns, because of the way the polices are written, it takes a lot longer for a whole life policy to accumulate significant cash value (often 12 - 15 years) than if you invested on your own.

«Buy term insurance and invest the difference» is a strategy that grew in popularity because it will provide the typical American stronger returns, lower fees, and better coverage than a typical whole life or universal life insurance product.

The cost of whole life insurance is much higher because of this, and the rates of return on whole life insurance are usually much lower than normal investments.

Universal Life and Variable Life offer greater flexibility and potentially higher rates of return on investment, but are also more risky as investments than Whole Life Insurance.

If investments made in the separate accounts out - perform the general account of the insurance company, a higher rate - of - return can occur than the fixed rates - of - return typical for whole life.

However many are considering buying term life insurance at a lower rate and invest the difference on high - growth products like stocks and mutual funds where the returns are much higher than what you get as accumulated cash value on your whole life insurance.

Dividend payments are typically large enough that whole life owners actually can expect to have a positive rate of return on their life insurance during the life of the owner, meaning after a certain amount of time the cash value of the policy will be larger than the amount of money paid in.

The theory is that an investment portfolio will produce higher returns for the owner than a whole life policy over the long term, making term the smarter choice.

Term is far more affordable, most people do not need life insurance coverage to last past retirement age, and by investing money in other places such as the stock market people will end up with a much higher return on their investment than they will with a whole life policy.

In the end, if you're going to invest some extra money in your life insurance, a return of premium insurance policy offers a better value than a whole life.

While it might be true that historically if you invested your money this way you would realize a higher rate of return than purchasing whole life, the investor needs to actually stomach the downturns in the market and keep the money invested.

This form of permanent life insurance is more affordable than whole life, has adjustable premiums and may pay higher returns.

This way you should have investments that have a higher return on the investment than a whole life policy.

Investment returns on whole life insurance are typically lower than other types of permanent insurance, because the insurance company invests the cash value in extremely conservative vehicles, such as bond funds.

The company's Indexed Universal Life — Global Choice, issued through Security Life of Denver Insurance Company, provides index crediting potential based on a formula that tracks the performance of a major indices, such as the S&P 500, potentially generating higher cash value accumulation than traditional whole life or universal life, but without the potential negative returns of variable life insuraLife — Global Choice, issued through Security Life of Denver Insurance Company, provides index crediting potential based on a formula that tracks the performance of a major indices, such as the S&P 500, potentially generating higher cash value accumulation than traditional whole life or universal life, but without the potential negative returns of variable life insuraLife of Denver Insurance Company, provides index crediting potential based on a formula that tracks the performance of a major indices, such as the S&P 500, potentially generating higher cash value accumulation than traditional whole life or universal life, but without the potential negative returns of variable life insuralife or universal life, but without the potential negative returns of variable life insuralife, but without the potential negative returns of variable life insuralife insurance.

Also, depending on how the interest rate in the cash value component will be credited, the rate of return on a universal life insurance policy is oftentimes higher than it is on a comparable whole life insurance plan.

Whole life insurance has also consistently performed at a higher rate of return than highly rated bonds, but it historically has been an extremely secure investment just like a highly rated fixed income product.

Policy Dividends: With whole life insurance, insurance companies may pay dividends — a return of premium for better - than - expected performance by the insurance company.

A whole life insurance policy costs more than term life — usually a lot more — because you're not only paying the premium on the insurance policy, you're also paying to build up cash value for the policy, which typically earns a fixed, guaranteed rate of return.

The nay sayers argue that the extra money put into whole life would give you a higher return than had it been put in other investments.

With whole life insurance, the guaranteed annual rate of return is lower than you might get with alternative investments, but you may want your child to have a death benefit as well.

Well, there are several reasons life insurance is cheap, especially compared to what you may be spending a whole lot more on each month, and getting much less in return, other than adding to your waist - line, ha - ha.

Because of this, the return can be greater than that of a comparable whole life insurance policy.