Know what you own before you buy more
Four guides on how life insurance is designed and what it really costs: two policy designs side by side, one case study, and one guide for employees. Each shows the numbers.
The Back-End Squeeze
Whole life against indexed universal life on the same $2,995 annual premium, ages 41 to 100. Capping the credit up front does not matter if the charges squeeze the policy on the back end.
Read Designs 1 and 2 together. The Back-End Squeeze shows insurance costs rising as you age. The Whole Life Cash Alternative shows the opposite: a design where the insurance cost shrinks as cash value grows.
Illustrative IUL with an increasing death benefit option. Carrier names withheld.
average rise in the IUL cost of insurance, ages 81–90
in IUL charges from 81 to 100, at every crediting rate
whole life net amount at risk by 100: the insurance cost shrinks instead
The Whole Life Cash Alternative
For excess cash in low-interest, taxable reserve accounts. Moving $10,000 a year into a 10-pay whole life policy keeps pace with the account it came from, and adds a death benefit on top.
$100,000 at 4% taxed at 25%, against 10 annual transfers to whole life at a current 6% dividend scale. Dividends not guaranteed.
the whole life cash alternative passes the taxable account
passes to heirs at year 8, against $126,677 from the account alone
pre-tax return the account would need to keep pace by year 21
One Policy, Three Phases
One whole life policy followed from age 41 to 100: build cash value, draw tax-free income, then leave a legacy. Returns shown as true IRRs, including the tax-equivalent value of income.
$20,000 a year for 25 years. Dividends not guaranteed.
tax-free income, ages 66–80, from $500,000 of premiums
build (41–65), income (66–80) and legacy (81–100)
Life Insurance Inside Your 401(k)
Qualified Life lets employees buy term or permanent coverage with pre-tax dollars, at unisex rates, with an employer match where the plan offers one.
Example only; your plan must permit life insurance.
saved on the same $1,000 term premium in our example
typical savings from unisex rates
Read the Advanced Group Client Education Series
Term, permanent and what you are really paying for
Term
Lowest premium for a set period. The premium is a lost expense unless death occurs during the term, and most term policies never pay a claim.
Whole life
Level, guaranteed premium and cash value. The policy is designed to stay in force for life and can be used for income, loans and legacy.
Universal and indexed UL
Flexible premium with charges deducted monthly. Performance depends on crediting and on charges that increase with age.
Death benefit analysis
How much coverage do you need, and for how long? We start from what you have today and what your family would need.
- Current coverage: personal, group and any policies through a plan
- Updated needs: debts, income replacement, education and estate costs
- Survivor income: how long and how much
- Disability and long-term care: living benefits as well as death benefits
Not sure what your policy is doing?
Bring your annual statement. An Advanced Group consultant will walk through charges, crediting and guarantees with you.