In this post, I’ll cover the truth about whole life insurance and how you can use it to protect your family and business. Learn how a participating policy provides multiple benefits that you may not know about.
Whole Life Insurance Protection
Good old-fashioned, whole life insurance from mutual companies has quietly protected wealth for centuries. Yet, some radio entertainers attack it, and other social media “experts” mislead people with exaggerated claims.
Families and business owners can reduce their risks, and take control over their finances with certainty, using the power of whole life insurance.
Participating Whole Life Insurance Plan
Whole life insurance is the cornerstone for your financial plan. If all else fails, it will provide a benefit that can replace your other assets or income. Without it, all else can fail.
Participating means that the policyowner can participate in the ownership through dividends.
Meanwhile the policy is protecting your other assets, guaranteed to improve every year, and offers liquidity and access to capital on your terms.
The Banking Function
Most people have heard that you could take loans with a cash value policy, but few understand the true benefits of controlling the banking function.
Nelson Nash, the author of Becoming Your Own Banker – Unlock The Infinite Banking Concept, explained that it’s a paradigm shift in how we think about finance. He explained that we finance everything that we buy, either paying interest to others or giving up interest we could have earned by paying cash.
The Infinite Banking Concept (IBC) works through a custom designed, dividend paying, whole life insurance policy from a mutual life insurance company. These policies function like a bank as the policyowner, or payor, pays premiums or deposits and then has access to the cash values via loans.
Having access to capital allows the owner freedom, use, and control of money, without having to qualify financially. Once a policy is approved and in-force, the policyowner has access to the cash value of the policy at any time for any reason they choose.
IBC is simply a way to self finance our major purchases we make over our lifetime without traditional bank qualifying. And, shift the flow of those payments into a privatized system that you can own and control. In doing so, we can recover the payments that we would normally make to banks and finance companies.
The Truth Will Set You Free
The truth about whole life insurance may seem obvious, but human nature allows us to have conflicted feelings about those things we would prefer not to face or act upon.
No one likes to consider the possibility of their dying — and of course, there’s no requirement that people own life insurance. But, most people own life insurance because they “love someone” or “owe someone.”
Once we make that decision, everything else can fall into place, you’ll feel better knowing you took responsibility and held your self accountable by using an asset that give you peace of mind.
Why it Pays to Own Whole Life
Here are just a few reasons you may want to own as much whole life insurance as you can. And, to clarify we are talking about guaranteed, whole life insurance.
Guaranteed Level Premiums – premiums that can’t be increased.
Guaranteed Death Benefit – Your beneficiary(s) will receive a guaranteed, payment upon your death.
Cash Value Growth – You can also build a significant cash asset that’s not dependent on the rise or fall of the markets.
Banking Qualities – You can borrow against the cash value portion of your whole life insurance policy without qualifying by credit score, and to use however you like.
Potential Dividends – Mutual life insurance companies pay dividends, this means that you may receive an amount of money based on the company surplus each year. While not guaranteed, the payments have historically been made every year for over a century.
Tax Benefits – Whole life insurance offers many tax benefits, and if used correctly, you nor your family may ever have to pay taxes on the growth.
Myths and Misinformation
“Myths which are believed in tend to become true.” ~George Orwell
What makes theses myths so destructive is that they can be perpetuated from generation to generation. When we hear something repeated we often think of it as truth. Leading us to another of our favorite quotes…
If what you thought to be true, turned out not to be true, when would you want to know?
Learn More About Life Insurance
Check out our video blog.
Life Insurance Review
Now that we’ve discussed the truth about whole life insurance, it may be a good time for a review. There’s no cost or obligation to learn how whole life could work for you, your family or business.
Life insurance provides protection for your family and loved ones while allowing you to meet your financial goals. Whether term life or whole life, in the event of death, a death benefit is paid to the beneficiaries income tax-free.
Until next time,
I’m your financial advocate,
Barry Page, RFC