Tony Steuer, CLU, LA, CPFFE 
Universal life insurance, also known as UL, offers policy owners considerable flexibility as to the amount and timing of premiums, and the face amount of coverage, which can be increased or decreased. Like any other life insurance policy, UL has it advantages and disadvantages.
What are the impacts on life insurance companies because of stranger-owned life insurance? There is some debate as to what the bottom-line impact will be to life insurance companies, which also varies from company-to-company.
Make no mistake this will impact you and your family. This is a critical issue as health care spending is … Read more
Insurable interest means that the person who is purchasing the policy has more to lose than to gain by the insured’s death and therefore may purchase a life insurance contract on somebody else’s life. This is intended to prevent a person purchasing a policy unknowingly on another person for purposes of wagering, planned murder, or any other reason.
A conditional receipt binds your life insurance coverage effective on the date of your application (the exact conditions vary a bit from company to company), provided that you are eligible for the coverage applied for. If applicable, you will receipt after your application has been taken and you have paid the initial premium payment.
Private Placement Life Insurance Products (PPIP) are non-registered Variable Universal Life (VUL) policies and Variable Annuity (VA) contracts that are offered exclusively to high net worth individuals. They have been referred to as a “hedge fund in a life insurance wrapper.”
Like any other financial investment, there are risks associated with a premium-financing arrangement. One risk alone – or in combination with another – could cause the entire program to fail. This is why it is advised to be aware of them before making a decision.
Premium financing has been around for years in the life insurance industry and has been heavily promoted, especially among wealthier … Read more
What are the impacts on life insurance companies because of stranger-owned life insurance? There is some debate as to what the bottom-line impact will be to life insurance companies, which also varies from company-to-company.
Stranger-owned life insurance (STOLI) is exactly as it sounds – life insurance originated by a stranger. Typically, they are initiated by a third party looking to own and control a policy from the beginning. When reviewing a STOLI transaction, there are certain issues to keep in mind.
