Another Way Indexed Insurance Could Bomb

“Heads you win, tails you win” is one of the favorite sayings of the insurance salesman.

I’ve seen a lot of insurance products promoted this way, as is the case with indexed insurance, the popular product of today’s era. It is a complex insurance product, packaged in way that makes the policy owner believe they can’t lose. If the stock market goes up, they make money. If the stock market goes down, they stay even.

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Indexed Insurance – This Probably Won’t End Well

Indexed life insurance and annuities are hugely popular. I suspect they will sorely disappoint their policyholders over the long term.  The reason? Well, this is what always happens with these waves of popularity in life insurance.

Background

To understand why indexed insurance will likely be a lemon, you have to understand some history about other insurance products.

Variable Insurance (Late 1990s and Early 2000s)

During this era, variable insurance became popular. That is, insurance where your cash value can be invested ...

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Do the Wealthy Need Life Insurance?

One of the most commonly asked questions in financial services – and also one that creates tremendous confusion among both clients and advisors alike. As a family’s wealth grows, does this prescribe they need more life insurance or less?

One point of view

I used to know an extremely successful life insurance agent who argued several points such as:

1. The younger you are, the more life insurance you need

2. The older you are, the more life insurance you need

3. ...

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