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In Reply to: Re: Re: Re: Re: Re: Re: whole life posted by TVO on August 17, 2001 at 20:35:06:
: Additionally, WL is property owned by the insured, as is UL, VUL, and term.
TVO, I was beat down on this point by two people reviewing
"The Visible Policy". The only phrasing upon which we could agree was:
the policyholder owns the policy
the policy "owns" the cash value
This indirect ownership has advantages in many states. In
Florida, for example, creditors have not right to the accumulated
cash value in a debtor's insurance policy. He doesn't own it. :)
It also has a disadvantage. Should the insurance company get sued,
the general accounts of the insurance company are considered assets
of the insurance company, not assets of individual insurance acounts
(which in my opinion they actually are). So if 3 nice retired women
in Mississippi sue an insurance company and get 2 billion in
punitive damages, there is apparantly a risk to non-guaranteed
cash value. I don't consider it a high or even medium risk,
but with the current crazy lawsuit frenzy in the US, I do
not think it can be ignored entirely.
I may be wrong about this, but to date no one has challenged it within the GlossPinion.
-- Rich
--- http://rocq.home.att.net