Posted by IBIS, an industry research institution located in Los Angeles, California, released the "National Life Insurance and Annuity Industry Market Report" in May 2019, which interpreted the new trends in the U.S. insurance market.The report pointed out that life insurance and annuity industry funds are one of the largest sources of investment capital in the United States. American Life Insurance Company holds 20% of US corporate bonds on the market, Insurance companies are the largest financing channel for large, medium and small companies in the United States. Many companies rely on life insurance companies to expand their business or conduct financing transactions.
but,American Life Insurance CompanyThe main service target is the policy holder.By investing time and funds, our policyholders indirectly support insurance companies to participate in the above-mentioned market investment behaviors, and rely on the legal "advantages" given to the insurance industry by the social system to achieve wealth preservation, inheritance planning andTax-free retirement savings planningThe goal.
This is what an American life insurance policy can doSupplementary retirement incomechannelThe origin background.However, there are nearly a thousand life insurance companies in the United States and thousands of various insurance policy products.Which insurance companies, or what kind of policy product design solutions, are truly suitable for our need to "maximize retirement income"?
In this article, insurGuru©️Insurance CollegeWill analyze,What is the "right" retirement income planning policy, Combined with actual case analysis, compare different insurance products, the differences between each other, and the direct impact on us as the insured person, the pocketbook.
Selection principles for maximizing retirement income planning
Use American Life Insurance PolicySupplementary retirement incomeplanning,In order to achieve the expected goal of "maximization", one must choose insurance policies with relatively strong "cash value accumulation potential".
Therefore, there is no cash value capacityTerm life insurance, Is not within our consideration.
The cash value growth capacity of UL insurance is limited, and it is usually not used to carry out "Retirement income"Planning does not meet the evaluation requirements of this article to "maximize retirement income", and we also exclude it.
AndVUL type insuranceIt is a high-risk type of insurance. If you encounter the risk of a downturn in the stock market in 2008 when you retire, the accumulated wealth of the previous decades may be cut in half.Although the current evolution derives the Guranted VUL insurance category, the entire insurance category has higher requirements for the policyholder’s own investment level and risk management capabilities, and the overall market share of the entire VUL insurance category is only about 6%. Therefore,insurGuru©️Insurance AcademyIt is not included in the scope of this evaluation.
InsurGuru©️ Insurance Academy has just completed a savings-type whole life insurance (whole life) And exponential universal insurance (IUL)ofInsurance evaluationWe pointed out IUL Provides a stronger cash value growth "ability".
To sum up, the selection object of the American Life Insurance Guide©️ evaluation is usually considered to have a strong "cash value accumulation potential" and relatively low risk index type insurance, which is also the most common type of insurance used to supplement retirement income Planned insurance policy account types of insurance.
The cost of choosing the "wrong" product or design
There are so many insurance companies, and there are nearly XNUMX types of index-type insurance products. Are the effects the same?
The answer is:The effect is completely different.
Each insurance company has different cost accounting methods, asset management capabilities and areas of expertise.Index insuranceThe cash value capabilities of products also vary.
If our need is to "maximize retirement income", but we have chosen a "guaranteed" productExponential policyProduct, or if you choose the "right" product, but a "wrong" plan is designed, after so many years, the cash value in our policy account will have a big difference.
How much will we take less specifically?以下American Life Insurance GuideInsurGuru©️Insurance CollegeEvaluation of this.
Case Comparative Analysis
Elizabeth, 30 years old, female, runs a good cosmetics e-commerce brand.As a 1099 self-employed owner, or "entrepreneur", Elizabeth does not have a traditional retirement account. After comparing the tax advantages, Elizabeth considers using a life insurance policy account to configure a tax-free retirement income plan for herself.
Elizabeth intends to deposit $2 each year for 15 consecutive years, and start receiving tax-free retirement income after the age of 60, until the age of 90.
Product A and Scheme 1
After clarifying the need to "maximize supplementary retirement income", the financial adviser recommended to Elizabeth a well-known insurance company that is good at "cash value accumulation".Index insuranceProduct A, and design the insurance policy.
The coverage of the first design plan is US$4,000,000. Elizabeth deposits US$2 per year for 15 consecutive years.Using the program’s default average market forecast interest rate of 6.9%, between the ages of 60 and 90, Elizabeth can expect to withdraw $41,421 of tax-free retirement income from the policy each year.
In this design plan, Elizabeth has invested a total of $30 and is expected to withdraw cumulatively in 30 years$1,242,630Of retirement income.
Elizabeth thinks the combination of product A and solution looks good, just looking at the numbers,$30 in exchange for $120 million, with an investment and return ratio of 1 : 4.1insurance leverage ratio.But wait a minute, as insurGuru©️ Insurance Academy"Misunderstandings of the U.S. Insurance Guide"The article mentioned that even if the same product of the same insurance company, through the hands of insurance policy designers with different degrees of expertise, even if it is understood and designed according to the same needs, it may have completely different effects. If the design is optimized, How big will the gap be?
Product A and Scheme 2
The selected insurance product remains unchanged. Let’s take a look at the second plan. The new plan reduces the insured amount to $3,000,000. The insurance policy is redesigned. Under the same deposit method and a predicted interest rate of 6.9%, it will be between 60 and 90 years old. Between ages, Elizabeth can expect to withdraw from the policy every year$79,115Of tax-free retirement income,Investment and return ratio of 1:7.9insurance leverage ratio.
In the new design, Elizabeth expects to withdraw from the insurance policy cumulatively in 30 years$2,373,450U.S. dollars, a full $100 million more tax-free retirement income than the previous design.
As can be seen from the above comparison,The same demand, the same product, and different design schemes, if you choose the "wrong" design scheme, then in 30 years, Elizabeth's retirement wallet will directly lose $100 million.
Solution 3 evaluation after replacing product B
American Life Insurance GuideThe evaluation does not stop here.Next, we assume that Elizabeth holds a US green card, or is a US citizen, has his own real estate under his name, and has a cash deposit of more than $10 in a US bank, has a stable income, good credit and a certain social status.insurGuru©️Insurance AcademyThrough product selection and comparative analysis, in accordance with the requirements of "maximizing retirement income", a newIndex insurance productsB carries out the redesign and evaluation of the scheme.
So the question is, how much impact will the design of product B have on our wallet?
The insurGuru©️ evaluation team still uses a $300 million insured amount, with an annual deposit of $2, and a 15-year continuous deposit plan for evaluation.After more professional and targeted product selection and policy design, other factors remain unchanged, and the average market forecast interest rate of "6.9%", which is the same as before, is used. Then between the ages of 60 and 90, Elizabeth can How much is expected to be withdrawn from the policy?
The answer is: $10.3 in annual tax-free retirement income.
In this design plan, Elizabeth has invested a total of $30 and is expected to receive a cumulative retirement income of $30 in 3,105,030 years.Investment and return ratio of 1:10.3insurance leverage ratio.
Article summary
Comparing plan 1 and plan 2, we will find that the same capital investment (30), the same length of investment time (15 years), different products and different plans, produce completely different results in the expected retirement income.
方案2比方案1帮助我们多拿了$100多万的退休收入，而如果投保人不幸地选择用方案1替代了方案3，Then our pocketbook will be reduced by a full $186 million in revenue.
Through the comparative evaluation of this article,American Life Insurance GuideI hope that policyholders will understand: When using a life insurance policy account for "retirement income" planning,The selection of insurance products and the corresponding insurance policy design plan, These two will directly affect our retirement money bag.
If the policy selection and design plan lack professionalism, when the policyholder needs to take money in retirement, he will feel that the results of using the policy to plan retirement income are unsatisfactory, and even feel that "life insurance is a lie".In fact, as the survey report at the beginning of the article pointed out, using American life insurance as a supplementary source of retirement income essentially has a solid financial foundation.
"Help the Chinese have a comprehensive understanding of American life insurance knowledge, so as to obtain products that can truly protect themselves and their loved ones."
——American Life Insurance Guide Network ©️
Finally, the American Life Insurance Guide has always emphasized the LBYB (Learn Before You Buy) principle, and the Life Insurance Guide community website also providesInsurance College.Insurance Product Center.Financial Insurance Product Evaluation.Insurance strategy guideA large number of topics are provided for the reference of policyholders.After we have a certain basic knowledge, please be sure to seek the assistance of professional life insurance policy planners, or insurance brokers/insurance consultants who only charge professional service fees, to find a real better realization for the major life decision of retirement income. Products and solutions on demand. (End of full text)
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Disclaimer:
*In order to comply with the laws and regulations of the financial and insurance industry in the United States and the compliance of the insurance industry, we cannot mention the name of the specific insurance company and the name of the specific product in the public evaluation article.
*The figures and amounts shown in the article are only used for education and information sharing and communication. They are not the actual contract content of the insurance policy, nor the guaranteed return value, and do not have any legal effect.The actual situation is subject to the contents of the English policy.
appendix:
01. "Life Insurance & Annuities Industry in the US – Market Research Report", May 2019, IBISWorld, https://bit.ly/2ksj5PF
