A life insurance policy is a financial asset, which needs to be reviewed on a regular basis to ensure you are getting the value you expect, in exchange for the premium dollars you pay to the life insurance company. Your policy could be affected by a change in personal preference, the issuing company’s financial condition or increased competition in the insurance industry. In some instances, replacing your pre-existing policy with another one may be more beneficial for you, but it is a very big decision to make.
Variable life and variable universal life are two of the most difficult policies to understand. Each of them provides a death benefit and cash value, which varies depending on the performance of an underlying portfolio of investments. The insurance company invests the premium dollars as part of the company’s so-called general account.
Equity-indexed life insurance (EIUL) is a newer form of universal life, which combines elements of variable insurance into the mix. Most EIUL policies, unlike traditional universal life, have two separate accounts that can be used to credit interest. One account has a fixed interest rate that is declared by the insurance issuer, periodically. The other provides an equity option, which offers you the opportunity to benefit from positive equity/stock market returns.
The National Association of Insurance Commissioners adopted the model regulation, which is a new regulation aimed at protecting consumer and fostering consumer education. Under this regulation, new standardized procedures for policy illustrations were created to help ensure that all illustrations are not providing misleading information.
Due to screening and early detection, physicians have been able to detect cancers before they have developed or at an early stage, which can result in a lower life insurance premium. The American Cancer Society recommends screening for the following types of cancers: breast cancer, colon cancer and cervical cancer.