Article Abstract:
Universal life and term life are two popular forms of life insurance policies. Universal life policies offer a number of advantages over term life policies, such as cash values and renewal guarantees. Investment returns are analyzed for universal life policies and term policies, in which savings from lower term premiums are invested. Ten-year universal life cash values are comparable to 10-year returns on money market and stock market investments. Customers should therefore analyze risk levels, interest rates and taxes when deciding between term life and universal life insurance.
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Article Abstract:
Sales of variable universal life (VUL) insurance should increase during the 1990s. This type of insurance offers policyholders high interest rates, flexible premiums, and the opportunity to allocate cash values among different investment funds. Clients who purchase VUL will have more success than those who purchase term life insurance and invest the difference. VUL offers better long-term cash value and is more effective in meeting life insurance needs.
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Article Abstract:
Nonprofit organizations have been attracted to 403(b) savings plans, after the Tax Reform Act of 1986 prevented these organizations from offering 401(k) plans. With 403(b) plans, employees can contribute up to 20% of their salary, or up to $9,500, and employees that have worked 15 years or more can put in $12,500 per year before taxes. Under a 401(k) plan, employers can contribute without having to pass nondiscrimination tests.
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