Posted by Lao Wang is 55 years old this year, loves to play golf and is in good health.He always joked that he must live to be 100 years old.
Lao Wang has also been considering the transfer of assets brought about by his wealth inheritance.Considering the advanced age in the future, it is impossible to spend more time and energy to deal with the complicated procedures brought by various "heavy assets", so Lao Wang chose to use a more concise contract form to inject some of his physical assets into the In an insurance contract,Transferto wives and daughters, and with reasonablelever, leaving a fund of about $500 million.
Lao Wang hopes that this part of the assets can be confirmed at the moment of purchase, and he does not want to have tax troubles.Therefore, only guaranteed insurance products are considered, and no financial investment insurance products are considered.
1. Conservative choice: GUL (Conservative)
Guaranteed Universal Life, Chinese name, guaranteed claims type universal life insurance, referred to as GUL.
"Guaranteed", that is to say, on the day that Pharaoh took out the insurance, the amount of the claim that the beneficiary can receive is determined, and there is no need to worry about the issue of breaking the insurance*.
This type of life insurance does not have any "superfluous" additional financial management features, its sole purpose is to leave a guaranteed payout to the children or beneficiaries at relatively low premiums.It is also a type of life insurance that most resembles "insurance" in the traditional sense among the dazzling array of American life insurance products.
The following picture is a price description chart for the age of 55 to 100 drawn according to the actual situation of Lao Wang and according to the interest rate price data provided by the community dealer (omitted after the age of 80).
©️ Based on the 10/31 interest rate price of an insurance product, this chart is not a sales and quotation chart, it is only used for public education
As shown in the table above,Fixed annual premium of $66,279,Death claim of $500 million.In the first ten years of insurance, the insurance asset leverage pen is about 1:10.By the age of 75,insurance leverage ratiois about 1:5.
With increasing age, the risk of death increases,insurance leverage ratioGradually reduced, but at the age of 90, there is still more than 2 times the capital leverage.
GUL Insurance: Disadvantages of a Conservative Choice
Lao Wang is 65 years old this year and has just paid for 10 years.During the year, due to the complicated changes in family relations, Lao Wang changed his mind and did not plan to keep the money. He wanted to spend the insurance premiums he saves every year and travel around the world to enjoy life after retirement.
At this time, Pharaoh faced a problem. If he stopped paying the premiums at this time, the previous more than 60 US dollars would be wasted; if he continued to pay, he would go against his will.
"To pay or not to pay" became a problem for the Lao Wang family at this time.
This is the biggest disadvantage of traditional GUL-type insurance in the field of asset transfer and wealth inheritance: it has no flexibility, has no cash value, and is only used for claims.
If the policyholder changes his mind, he cannot go back.
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2. Aggressive choice: GVUL (Aggressive)
Pharaoh wants to have a certain amount of compensation, but also thinks that if he changes his mind in the future, he can get back part of the principal.
Lao Wang heard that there is a type of securities type insurance in the market,Guaranteed death claims are provided, along with cash value that may be able to get some money back.Give it a try, if you encounter gold for 10 years again, you can also use it as financial management.This type of insurance product, derived from VUL, is collectively referred to as GVUL, and the full name is Guaranteed Variable Universal Life.
The following picture is a price description chart for the age of 55 to 100 drawn according to the actual situation of Lao Wang and according to the interest rate price data provided by the community dealers (limited space, omitted after the age of 84).
©️ Based on the 10/31 interest rate price of an insurance product, this chart is not a sales and quotation chart, it is only used for public education
As shown in the table above,Fixed annual premium of $77,363,Death claim of $500 million.
Due to the new cash value feature, andVUL insuranceThe unique fund management fee, the comprehensive cost factor brought by, in this evaluation, GVUL InsuranceAsset leverage ratio, slightly lower than the simpleLeveraged Productsgull.
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GVUL Insurance: Pros and Cons of Aggressive Options
GVUL finally has cash value in addition to a guaranteed death claim. If the 60-year-old Wang changes his mind again, the green box part is maybe every yearamount that can be refunded.
From the green box in the picture above, we can see that if Lao Wang changes his mind at the age of 60, and the fund investment in the policy does not make a loss or profit, after deducting the cost, he can get back $25,610 from the insurance company.
Compared with the situation that GUL insurance can't get a penny back, GVUL is more flexible, but the risk of investment profit and loss is borne by the insured.There is no guarantee of how much money you will get back.
This is the significant disadvantage of GVUL type insurance: it is a security type product and does not show investment losses.Although there is a cash value refund feature, the insurance company does not provide a guarantee of the cash value.
2. Robust choice: GIUL (Moderate) – ROP
Lao Wang believes that at this stage of life, the goal is no longer to gain a blog.
After once again clarifying the definite goal of "saving a sum of money", Lao Wang not only wanted the flexibility of cash value, but also thought that if he changed his mind later, he could still get a guarantee that he could return the insurance premium.
This type of insurance product,A guaranteed death claim function is provided, as well as a cash value function, and finally a guaranteed premium refund function has been added.it isIUL insuranceThe derivatives of GIUL are collectively referred to as GIUL Rop, and the full name is Guaranteed Indexed Universal Life Rop.
The following figure is an illustration chart of premium prices for 55-100-year-olds drawn based on the actual situation of Lao Wang and based on the interest rate price data provided by community dealers (after the age of 95, it is omitted due to space limitations).
©️ Based on the 10/31 interest rate price of an insurance product, this chart is not a sales and quotation chart, it is only used for public education
As shown in the table above,Fixed annual premium of $84,020,Death claim of $500 million.
Due to the new cash value function and the comprehensive cost factor brought by the premium refund function, in this evaluation, the leverage ratio of GIUL insurance assets is the same as GVUL, and slightly lower than the pure leveraged product GUL.
GIUL Insurance: Pros and Cons of a Solid Choice
GIUL not only has cash value, but also can be guaranteed by the insurance company to return the premium. If the 75-year-old Wang changes his mind again, the green box part is the annualGuaranteed refundable amount.
As you can see from the green horizontal line in the picture above, if Pharaoh changes his mind at the age of 75, he can get from the insurance company.保证Get back $84 in premiums.When Lao Wang was 80 years old, the insurance company保证Refund of $200 million in premiums.
Compared with GUL insurance products, where you can't get a penny back, GIUL products have the flexibility of cash value; and compared with GVUL insurance, where the insured assumes all the risks of cash value, this type of GIUL insurance is provided by insurance companies " Guaranteed" commitment to refund the cash value of the premium.
But this brings a disadvantage of GIUL type insurance: more and more features, more and more expensive premium prices.
Article summary
GUL, GVUL, GIUL are 3 segmented insurance product types in the USD insurance market.Different insurance companies issue different insurance products correspondingly.
These insurance products on the market have different advantages and disadvantages, but in general, they conform to a basic common sense, that is: the simpler the function, the cheaper the premium price; for each additional function, the cost price will naturally increase accordingly.From the comparison of the annual premiums of these three types of products, we can see that,The fee also increases by $8,000 to $10,000 for each additional function point.
$66,279 -> $77,363 -> $84,020
Under normal market conditions, the price of a product is directly proportional to the richness of its functions.GUL with the lowest premium price, brings the fewest options, buthighest leverage; GVUL in the middle has the function of cash value; while GIUL with the highest premium price, insurance companies provide the most promises and guarantees.
If you were the king, which type of insurance product would you choose?
In this test, in order to have an intuitive comparison of these three types of insurance, we use a unified design parameter.The comparative illustration in this article will help the public learn and understand the interaction between different types of insurance products, premium prices and functions.
Throughout the review process, TheLifeTank©️ editors sought out life insurance advisors Heather Xiong CFP®️Thanks for your comments and help.
In the real world, policy account designs and payment plans vary from person to person.you can consultProfessional Life Insurance Financial Advisor, choose the asset transfer insurance product of your style preference, and carry out personalizedPolicy Account Design. (End of the full text Last Updated @ 11032022 10:00AM PST ）
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