Posted by This policy account has been in operation for 14 years, and the policyholder has deposited it for a total of 160 months.During the period, the policy account has undergone a migration from the merger of the issuing company A to the new insurance company B. Today, the policy account is ready to enter "Policy first aid"program.
The policy account is inApplication(Scheme planning),run(Company mergers and acquisitions)andTake care of(Management and maintenanceThe three stages of) encountered very representative events, and also corresponded to the three insured’s concerns:
- "What is the so-called "buy American life insurance"?"
- "Will the insurance company close its doors?"
- "What exactly is American insurance?"
After obtaining the consent of the policyholder,American Life Insurance Guide©️ And the financial insurance columnAuthor HeatherThrough the sharing of the 14-year policy account, the precautions for opening a cash value policy account and the key points of insurance will be explained.Common mistakes, And the reasons for the possible differences in the holding process, and help the insured understand:
- Advantages of Index Policy Account
- Why does this happen?
- Will this happen to my policy?
- How to avoid this situation?How can I avoid it?
- If the worst happens, what solution do I have?
Basic situation of the case
In 2006, when Thomas was in college, he applied to open aLifetime Index Policy Account.The policy issuing company is A*, an insurance company based in Ohio.
In October 2014, B*, an Iowa insurance company with a history of 10, merged with Company A and completed the management of the migration of insurance policy accounts.
In November 2019, insurance company B sent Thomas the latest statement of the operating status of the policy account.
Design plan when opening a policy account
The picture above is a screenshot (XNUMX) of the annual policy account statement that the insurance company sends to the policyholder every year.From the above picture, we can understand that this index insurance accountOpened an account in 2006, The initial sum assured is$ 50 million.
I marked with the red part, when the policy account was set up,
- Used Increasing's insurance policy design model
- As of November 2019, there are$36,641.24Cash value
- Thomas Cumulative Deposit$38,640Premium
Premium payment plan when opening an account
In the above screenshot (XNUMX) of the policy account statement file, I have marked two points that require special attention in red and green.
Red portion-Indicates that the payment design plan given when the policy account was established isPay $230 per month.According to this plan, the customer has actually implemented the deposit for 13 years and 4 months.The green part is explained in the evaluation (below) part.
The income of the policy account
The figure above shows the annual income of the insurance policy account of the index.I use the green mark to point out that the insurance company providesThe income cap is 10%.At least 1% of bottoming income is guaranteed:
- If the income of the year is negative or less than 1%, make up to 1%;
- If the current year's income is higher than 1%, a maximum return rate of 10% will be given;
From this point of view, this policy account that took effect in 2006 can still be called "excellent" after the merger of an insurance company and a new owner.
(Recommended reading:What is the return cap of US index insurance?What is it for me?）
The question of insurance costs
The cost of insurance of life insurance products each year (Cost of Insurance) increases as we age and increase year by year.Since the product account only provides simple death claims, and no borrowing occurs, there are no other expenses other than COI.
(Recommended reading:A detailed description of the fees and costs of opening a U.S. index insurance account）
In the statement above, I also marked it in red. The insurance cost of this policy for the year is$295.9 yuan.The green part is the overall income of the policy account for the year, and the two add up to$1,349 yuan.
After deducting the cost of insurance from income, the policy account will beThe actual net income is $1,053, Thereby reducing the policy account balance from last year’s $32,827,Pushed up to $36,641.
This is exactly the "U.S. Index Policy"The core principle of ""-through the accumulation of cash value over 10 years and 20 years, a part of the income generated by the account every year can completely offset the annual increase in the comprehensive cost of the insurance policy, and the excess part can complete the function of continuing to push up the cash value.
At this point, I can’t help but ask questions.Why does a product that looks so good, with such a high "price ratio", is still generating positive cash flow, but it may be facing entry"Policy first aid"The process?
After Luo listed detailed data analysis and communicated with policyholders, rational thinking finally refuted his subjective feelings.We will eventually find that the potential risks have been systematically pushed to 30 years later:Between 70 and 80 years old——When we are in retirement and need protection most, we may suddenly be exposed to the risk of losing protection.
We will point out in the analysis part of the (below) part.
Reference appendix
* "WRL SERIES LIFE ACCOUNT ", US Securities and Exchange Commission, 04/28/2004, https://bit.ly/2VUrjQC
*. "APPROVING PLAN OF MERGER WITH WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO", US Securities and Exchange Commission, 04/21/2014, https://bit.ly/2z6xmbz
