How much does a $100 million U.S. insurance policy cost?Participating insurance vs index insurance vs guaranteed universal insurance evaluation

As a mother, Lucy wants to leave a sum of money for the child.

Lucy heardLife Insurance in the U.S.The highest leverage can be used to realize the inheritance of wealth, so consider applying for a lifetime life insurance policy. Lucy's idea of buying insurance is relatively simple. It is to use the insurance company's claims to leave a fortune of $100 million to his children after his death, so that the children will be free from financial troubles as they grow up.

But when Lucy really started to buy, he discovered that there are so many products on the American market.Wealth management companyOrbrokerAll said that her product is the most suitable and the plan is the most reasonable, so she has no idea how to start.How can this be good?

OnA must-read guide for American life insurance (XNUMX)In China, we pointed out that the United States is a country with sufficient market competition, and a mature commercial society brings a huge variety of product choices.The real problem faced by policyholders is not the question of "buy it or not", but the question of whether they can find the "right" product.

Nowadays,American Life Insurance GuideWith the support of the IMO and BH Financial, the evaluation team used data to speak and comment on a variety of mainstreamLife insuranceThe evaluation has not only helped Lucy find the "right" product, but also helped our readers understand how to find the "right" product that suits them.

What are the types of insurance participating in the evaluation?

Whole Life Insurance

Participating whole life insurance, the English name is Whole Life.The feature of this product is to provide multiple guarantees.The American Life Insurance Guide evaluation team selected the insurance company's product that has ranked first in dividends for 10 consecutive years.

>>>Learn more about the introduction, advantages and disadvantages of participating insurance

IUL Index Insurance

Index insurance, the English name is IUL.The product is characterized by the use of market leverage to leverage the amount of insurance and has the strongest cash value growth potential.The evaluation team selected the products of the life insurance company ranked first in the world, selected by the 2019 InterBrand Global Insurance Brand Ranking.

>>>Learn more about the introduction, advantages and disadvantages of index insurance

GUL Guaranteed Universal Insurance

Guaranteed universal insurance, the English name is GUL.The feature of this product is that after the payment is completed, no matter what the market trend is, you will get guaranteed death compensation.The American Life Insurance Guide selects the products of a life insurance company that ranks Top Tier in terms of market share and cost-effectiveness of insurance in the current U.S. market.

>>>Learn more about the introduction and advantages and disadvantages of universal insurance

*Due to letters from certain insurance companies, in order to comply with relevant requirements, the American Life Insurance Guide website cannot use specific product names and names of insurance companies for comparative evaluation on public-facing pages.

Participating insurance vs index insurance vs guaranteed universal insurance data evaluation

Lucy's goal is to leave a fortune of $100 million for his children, using life insurance as a tool to complete this wealth inheritance process.Therefore, we chose these three products to generate a $100 million policy with a 10-year payment plan to see how much Lucy, who is 55 years old and in good health, needs to pay each insurance company in order to achieve this goal .

Whole Life (participating insurance) 10-year payment plan

Participating insurance is the longest type of whole life insurance with the current market share of more than 30%+. If Lucy uses this type of insurance, what will her cost be?

The picture above is a 10-year savings dividend insurance plan from a Top savings dividend insurance company. The leftmost column is the year of operation of the policy, and the second column is the age of the insured.The third column is the premium that needs to be deposited each year,The last column is the guaranteed $100 million death benefit.

From this policy design, we can see that Lucy uses a savings dividend-type lifetime policy as a tool to achieve this goal.A premium of $59,140 needs to be deposited each year, and the accumulated amount is about 10 U.S. dollars in 60 years.

Index Life (index insurance) 10-year payment plan

Index insurance, usually abbreviated asIUL, Its design and operation mode are completely different from savings and dividend insurance, and the design of the policy plan has great flexibility. If Lucy uses this type of insurance, how much will her cost?

The picture above is a 1-year IUL policy plan from a Top10 index insurance company. The leftmost column is the age of the insured, and the second column is the year of operation of the policy.The third column is the premium that needs to be deposited each year,The fifth column is the money you can get back when you surrender the insurance that year, and the last column is the guaranteed $100 million death benefit.

From this policy design, we can see that Lucy uses an exponential lifetime policy as a tool to achieve this goal.A premium of $29,920 needs to be deposited each year, and the accumulated amount is less than 10 U.S. dollars in 30 years.

At this time, we can’t help asking:Why is it also used for the inheritance of wealth of $100 million, one is 60, and the other is 30. The index insurance is actually half cheaper than the dividend insurance by nearly 30 US dollars. Why?

"InsurGuru©️ Insurance Academy of the American Life Insurance Guide Network"Which is better, savings dividend insurance or index insurance?Ace vs. Ace's American Insurance ReviewIn this article, we explained in many ways.

And the most popular answer to this question comes fromAmerican Life Insurance GuideAn in-depth message from a professional reader of:One is Liu Bei and the other is Guan Yu. Which one is more handsome?

After understanding the above knowledge, we may ask, since there are different opinions, but I am very conservative, but I think Liu Bei is too expensive, is there any other choice, both Liu Bei's characteristics and Yu's advantages?Next, let's take a look at the next option Lucy can choose.

Guaranteed Universal Life (guaranteed insurance) 10-year payment plan

OninsurGuru©️Insurance AcademyIn, we introduced GUL guaranteed insurance. Next, the evaluation team will take a look at the $100 million wealth inheritance demand and how much money GUL needs.

The picture above shows the 10-year paid GUL policy plan to realize Lucy's wealth inheritance.The leftmost column of the icon is the year of operation of the policy, and the second column is the age of the policyholder.The third column is the premium that needs to be deposited each year.The last column is the guaranteed $100 million death benefit.

From this policy design, we can see that Lucy uses a guaranteed lifetime policy as a tool to achieve this goal.A premium of $30,007 needs to be deposited each year, which is exactly $10 in 30 years.

Comparison of advantages and disadvantages: guaranteed capacity and cash value

From the above price evaluation, we can see that dividend insurance costs 60 yuan, guaranteed insurance only costs 30 yuan, and index insurance costs 29 yuan. The difference between dividend insurance and the latter two is a full 30 yuan. The difference between the two is about 1.

Why is there a full 30 difference?Regarding the comparison of the advantages and disadvantages of participating insurance and index insurance, the American Life Insurance Guide is in "Which is better, savings dividend insurance or index insurance?Ace vs. Ace's American Insurance Review"The article has a detailed explanation.

And in this evaluation,The advantage of the 30 GUL product is: guaranteed claims of $100 million until the age of 120.But the corresponding shortcomings are also obvious, the insurance policy has almost no cash value.

Since Lucy's needs are very clear-to leave money for the children, and the budget is not going to exceed $40, and he is unwilling to take any market risks, then the GUL policy seems to be a suitable solution for her.

Evaluation summary

From the evaluation of this article,American Life Insurance GuidePoint out that the price level is only a factor considered in the insurance process, and more importantly, we canprofessionalWith the help of clarifying our needs and understanding what we really want, only when the purpose is clear can we maximize the protection of the insured’s own interests.

And if the budget is sufficient, a better approach is to flexibly match insurance policies of different insurance types and adopt a diversifiedAsset allocationWays to diversify risks while maximizing the potential for growth.

If you were Lucy, what plan would you choose? (End of full text)

Disclaimer:
*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.

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