Consumers’s Guide to Understanding Option Pricing in Life Insurance

Thanks! Share it with your friends!


Writing options as a tool for retirement savings is a popular strategy. When utilizing it inside a life insurance policy, the benefits can be extremely powerful. Especially the ability to garner tax free income that doesn’t have the same restrictions as other qualified plans like an IRA or 401k.

In this video, Rob Brinkman reveals the mechanics of how this works and discusses why caps in a life insurance plan are superior to the caps in an annuity in almost all cases.

This video also explains how many of today’s popular life insurance plans are priced to enable consumer’s to take out loans against their life insurance policies. And of course, these funds come out as tax-free income.

To learn more about life insurance and annuities, along with the ability to download 5 free retirement white papers, check out the following site that we recommend.

Finally, in this video you will get an understanding of how life insurance actuaries use mortality tables, hedging, and bonds to price life insurance in today’s environment.


Jeremy Hudson says:
Josh Landis says:
Evan Ward says:

Good explanation on why life insurance growth can outpace annuities´╗┐

Mike Wilkinson says:
Jared Lomeo says:
Retirement Think Tank says:

Thanks Rob

Retirement Think Tank says:

Thanks Sarah. We’ll be posting more along the same lines.

Curtis Robinson says:

So, I take it that you like the Index Life Insurance over Whole Life or
Variable Life?

Sarah Degan says:

I always knew the caps were different in annuities versus life insurance,
but didn’t understand why. This was great information and explained
exceptionally well.

Robert Brinkman says:

What a great explanation!

Retirement Think Tank says:

It depends, Ben. I don’t want to knock Whole/Variable Life, but rather
highlight that I believe Index Universal Life has a more efficient platform
in regards to investment returns. 2008 really hurt variable contracts
because of the downdraft in the market. An Index UL avoided that.

Write a comment


* Copy This Password *

* Type Or Paste Password Here *

CommentLuv badge