Why “Overfund” A Life Insurance Policy (Part Two)
May 13, 2020 by Charlie Gipple
Recap: In last month’s column I discussed the two opposite ends of the spectrum when it comes to funding a life insurance policy, specifically indexed universal life insurance. Those opposite ends are, the death benefit focused side and the cash accumulation side. I also discussed how “overfunding/max funding” works from a mechanical standpoint in reducing COI charges. To summarize in an over simplistic way, we want the cash value and death benefit lines as close to together as possible if we are going for maximum accumulation! If you would like a copy of last month’s column, email me and I will send it to you.