The Evolution of Life Insurance: Newest Trend Index Universal Life
For many people life insurance is a no brainer. We are told it is part of a secure financial plan that will help family members and loved ones funerals costs and even pending financial responsibilities. But the reality is that life insurance policies can be hard to understand and the changing market makes it difficult to keep up with the latest life insurance policies.
Types of Life Insurance
San Francisco securities fraud lawyers advise the general public that they should be familiar with which of the six types of life insurance policies they were sold. These include participating whole life, whole life, universal life, variable universal life, universal life guaranteed, or the latest trend of index universal life. Participating whole life insurance became popular in the early 1970’s through 1980’s and in general are excellent in value. The two issues with this type of life insurance include the loans and contract premiums. Whole life insurance policies are rare but for the few that still exist, due to the low 3 percent interest rate they do not generally need to be reviewed. Universal life guarantee is another type of life insurance that does not need to be closely looked at due to its low cash value.
Risky and Potentially Dangerous Policies
The ones that need to be closely looked at and reviewed are Universal Life, Variable Universal Life, and Index Universal Life, warn experienced securities fraud lawyers in San Francisco. So what makes these policies riskier and potentially dangerous? Universal Life policies are seriously underfunded and those with Variable Universal Life policies should strongly consider moving or replacing their policy to avoid any crash investments. Index Universal Life policies are the Russian roulette of life insurance, requiring a 4 percent reduction in sales illustrations to make them more stable for the future.
We’re Here to Help
If you or a loved one feel you have been unfairly treated by a life insurance company, contact Evans Law Firm at (415) 441-8669 to speak with an attorney.