What is “Cash Value Life” strategy?
For hundreds of years, many savvy financially educated individuals and companies have taken advantage of a little-known side-effect of life insurance: “cash value” or equity life insurance policies, which pay the policy owner portions of profits, or an interest on money paid into a life insurance policy. To be able to pay benefits, insurance companies need to keep the money growing, so they utilize the leverage of their (actually YOUR) funds to make a profit. Some Mutual insurance companies are owned by their participating policy owners, so the company pays the policy owners shares of profits in the form of dividends. This money keeps growing, adding future dividends or interest to your funds. These are liquid to you, since you’re the owner of the policy / life insurance account, so you can take loans out of your own pile of money known as cash value. When you pay the loans back, you create the money movement necessary to allow your funds to keep growing.
With this method, your dependency on banks decreases, their power over you basically dissapears and your money finally grows for you, not for them.
There are two financial instruments that can be tailored to work this way, and depending on your specific situation one or the other may work better: either a “whole life” or an IUL (Indexed Universal Life). These policies pay interest or dividends differently, and it’s advisable to ask for a comparison to see what works best for you.
This is not a get-rich-quick scheme. This is a safe way to participate in growing wealth and utilize the liquidity of your life insurance equity like your own personal bank.
You are building your own personal bank
The cash value life system works like a bank account for you during your lifetime and like a life insurance policy in case of premature death. Best of both worlds. Loans can be taken out, being backed by the equity built in your life insurance policy.
Why didn’t you hear about this before?
Because companies have insufficient training for their workforce and this cash value small print often gets forgotten. When talking about life insurance, people want to quickly deal with this and forget about it, get some peace of mind and hope for the best. If you read your policy, I bet you’ll be very surprised to learn about some great benefits you overlooked.
Read your policy! It’s all in there:
The dividends, the interest. The guarantees. The historic and expected future payouts. How to get loans from your own pool of cash value money. These are contracts where you act as the owner, and the insurance company is the administrator of the plan. Take back your financial power and use it for YOU!
If still not convinced or need more details, schedule an appointment with me or one of our specialized financial advisors that are specifically trained to handle cash-value accounts.
For full transparency, this is what we’ll discuss:
– taxation implications and why this is a tax-free asset (benefits are tax free, loans are tax free, but make sure you keep the contract active, otherwise the end of contract triggers taxation. In other words, this plan is tax-deferred til death, and then cash value can cover taxes on earned interest while the death benefit goes to your beneficiary (minus any loans you took out of the cash value). But if you terminate this contract before your death the taxation changes, and you’ll be taxed on any growth at any premature policy termination.
– we’ll discuss goals, potential for growth and set up a strategy to fully take advantage of the power of the compound interest in your favor.
– backup plans, in case things change unexpectedly, and how to protect your money in various situations.
– we’ll cover the built-in guarantees, historic performance and expected outcomes.
Schedule an appointment today.
As we only have 5 time slots available daily dedicated to cash-value life insurance plans and strategy, make sure to schedule your 20-minute appointment early. Our calendar is booking up fast.
Daniel “LifeGuy” Dragan
877-LIFE GUY
Daniel@LifeGuy.com
Comments