I'm considering to take out a life insurance policy and would like to know about variable universal life insurance. Thanks for any comments.
Total Comments: 21
Posted: Tue Nov 29, 2011 01:41 am Post Subject:
You said "It gets interest credited based upon the decision of the board of directors of the insurance company."
The contract does not get interest based upon the decision of the board of directors! So if the S&P gained 10% and the contract offers a 10% cap you are saying that the Board of Directors can say they will credit 3%! That is wrong. The contracts PARTICIPATE IN THE STOCK MARKETS GROWTH! GET OVER IT!
I am not arguing that the money is in the general fund. I know it is not invested in the stock market. They buy options so that the account can PARTICIPATE IN THE STOCK MARKET GROWTH.
You may want to read the entire quote. That quote was about traditional universal life. The point is that with both UL and IUL the money is in the general account of the insurance company and the only difference is in how they credit the money. If one can say that IUL participates in the stock market growth, one can just as easily say that UL participates in the returns of the stocks and bond markets. Of course, we would never say that, yet, for some reason, people feel comfortable saying that about IUL.
Posted: Tue Nov 29, 2011 01:41 am Post Subject:
You said "It gets interest credited based upon the decision of the board of directors of the insurance company."
The contract does not get interest based upon the decision of the board of directors! So if the S&P gained 10% and the contract offers a 10% cap you are saying that the Board of Directors can say they will credit 3%! That is wrong. The contracts PARTICIPATE IN THE STOCK MARKETS GROWTH! GET OVER IT!
I am not arguing that the money is in the general fund. I know it is not invested in the stock market. They buy options so that the account can PARTICIPATE IN THE STOCK MARKET GROWTH.
You may want to read the entire quote. That quote was about traditional universal life. The point is that with both UL and IUL the money is in the general account of the insurance company and the only difference is in how they credit the money. If one can say that IUL participates in the stock market growth, one can just as easily say that UL participates in the returns of the stocks and bond markets. Of course, we would never say that, yet, for some reason, people feel comfortable saying that about IUL.
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