BEIJING, June 28 (Reuters) - The sales of China’s universal life insurance products dropped a hefty 59 percent year-on-year during the first five months of the year, official data shows, as the country’s insurance regulator cracks down on aggressive insurers in the market. Life insurance companies generated 308.4 billion yuan ($45.36 billion) from products related to so-called universal life in the Jan-May period, according to statistics released on Wednesday on the website of the China Insurance Regulatory Commission (CIRC). The decline comes as CIRC intensifies its widespread regulatory crackdown on the excessive use of universal life products. A handful of insurance firms,...
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Variable Universal Life Insurance Variable universal life insurance is permanent life insurance—it remains in force for the policyholder's whole life. And, as with universal life insurance, it provides a flexible premium and an adjustable benefit—meaning the policyholder decides how much to put in the policy above a set minimum. By extension, the policyholder also determines the face amount of the policy. The difference between variable universal life insurance and other types of permanent insurance is that the policyholder directs how premiums are invested. This provides access to the potentially higher returns provided by the financial markets. It also means returns could...
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We Find the Best Universal Life Insurance for You There are several ways to purchase Universal Life Insurance in Virginia. You can buy it over the Internet at literally hundreds of different web sites. You can call an 800 number and buy it over the phone directly from an Universal Life insurance company. You can call an insurance agent. In some cases, you can buy it at your bank or credit union. The choices are many and the challenge to purchase the Best Universal Life Insurance to meet your needs is difficult. In the midst of all the insurance commercials and advertisements, it may seem that Universal Life insurance is just a commodity–a product that is the same at every company. It’s...
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One of the most misunderstood features of universal life insurances is the difference and significance between option A versus option B. Flexibility is the hallmark of universal life insurance. But with flexibility comes confusion and uncertainty. Parents want to make confident and informed choices about how to protect and provide for their children. The difference in the application may be most important. Understand the definitions and implications of universal life insurance option A versus option B by looking at: Universal Life Insurance Option A Universal life insurance option A pays the face amount of the policy when the insured dies. The death benefit amount remains level throughout...
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What Is Universal Life Insurance? Universal life insurance was developed in the late 1970s to overcome some of the disadvantages associated with term and whole life insurance. As with other types of life insurance, you pay regular premiums to your insurance company, in exchange for which the insurance company will pay a specific benefit to your beneficiaries upon your death. As with whole life insurance, a portion of each payment goes to the insurance company to pay for the pure cost of insurance. The remainder is invested in the company’s general investment portfolio, with the potential to build cash value. Most universal life policies pay a minimum guaranteed rate of return. Any...
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Index Universal Life (IUL) Insurance Transamerica first pioneered IUL in 1997. This product was used to replace Variable Universal Life insurance(VUL). IUL is considered one of the permanent policies which are primarily sold by non-mutual companies (publicly traded issuance companies). In IUL premiums are due forever regardless of what the illustration or the agent says. Because it is a form of universal life insurance, the cost of insurance (mortality expenses) and admin expenses are due forever. So if you don’t make any premium payments after a certain age, the cost will be taken out of your cash value as a loan. In my opinion, it’s a very complicated product in which the insured...
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Combine the protection of life insurance with the growth potential of tax-advantaged investing. If you seek lifetime insurance coverage and tax-advantaged investing with long-term growth potential, consider universal life insurance. Flexibility and customizable options make universal life insurance from Royale British Columbia Financial Inc Insurance a smart choice if you want to build towards your future while helping to ensure that your loved ones are well-protected. What Is Universal Life Insurance? Universal life insurance combines permanent life insurance coverage with a flexible portfolio of investment options, customized to your financial needs and aligned with your risk tolerance....
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What You Need to Know about Universal Life Insurance by Tim Estes on Aug 16, 2017 Universal life was introduced nearly three decades ago as an alternative to whole life insurance which had been gradually losing favor due to its low rates of return and its inflexibility as a financial management tool. With interest rates on fixed yield investments reaching as high as 18%, life insurers were under pressure to attract more premium deposits with a product that could compete. They delivered with a life insurance product that offered the opportunity to own permanent life insurance while earning competitive rates of return. Since then, universal life has eclipsed whole life as the preferred...
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The first creation under the umbrella of permanent insurance that actually separated the cost of insurance from the investment deposit was universal life. The first generation had heavy front-end loads and used 1958 mortality table assumptions, but the product continued to improve and, within two years of its creation, companies began to introduce the "second generation." Universal life, a consumer-created product, has become the mainstay of the insurance industry. Universal life (UL), often referred to on the policy as “flexible premium adjustable life,” is composed of the same elements as any permanent product. The difference is with universal life, the elements have been "unbundled,”...
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I received many responses to my diatribe on permanent life insurance. Several pointed out legitimate uses for these products, which I included in the post, albeit near the end. And then a polite reader emailed me an illustration for an indexed universal life insurance policy. Wait until you find out how it works. The proposal calls for an annual premium of $100,000 paid for 20 years. I wonder how many people have an income high enough and steady enough to commit to paying this premium. According to IRS data from 2016 tax returns, 1.3 million taxpayers had an adjusted gross income (AGI) greater than $500,000. This accounts for less than 1% of tax returns filed. I think it’s fair to say these...
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