Whole Life Ins
“Taking Care of Your People First. Dividend Paying Life Insurance.” PART I
In personal ﬁnance blogs, one thing is glaringly left out… It’s not that it’s not mentioned, it’s mentioned… It just seems that no one really understands the product, how to use it or really show any ability to explain the product at any depth in regards to real estate investment.
Mainly it seems there are many popular blogs out there selling their creative work even when the blog writers aren’t actual owners of whole life insurance products nor do they really understand what it is or how to leverage investment real estate or the multitude of other investments out there for it. To me…. That does not count.
Besides the “ﬁnance blog world’, “Faking it!” Acting like they know something about it to sell advertising and promote their blog, it feels like a closely guarded secret for the really rich.
For nearly 20 years as I studied personal ﬁnance it would come up superﬁcially on my radar in an article here or there: “The Uber Wealthy Use Whole Life Dividend Paying Life Insurance all the time!” “I would see it on yahoo.com or FoxBusiness.com, I saw this for years and it just didn’t make any sense because I kept comparing it to TERM life insurance. When the two are nothing like the other. In it’s own way, It’s the difference of being a renter and being a real estate investor while someone else is paying your mortgage.
But clearly it showed all these rich people with fancy hats at the Kentucky Derby or whatever. Enjoying their Whole Life Insurance, and I can’t even ﬁgure out why they like it? What in the world are all of these really rich people really doing with Dividend Paying Life Insurance? My search continued…… For years…..
Why is this not common knowledge for the rest of us? Or at least an option…. Is it better, similar or even comparable to a 401K?
It’s been around longer than the stock market and can literally hand millions of dollars to your family after you die and when you die if you’re remotely healthy. Even if 3 you’re not that healthy you can strategically place policies on other important family members or employees.
What are the beneﬁts of Whole life dividend paying life insurance and why should you and your family care? So what life insurance is a racket at least that’s what I always thought. You pay let’s say $30/month and if you die within the allotted 20 years your family gets some money. If you do not die within the allotted time so sorry thanks for the $30/month for $20 years and congratulations for making the worst possible invest of your life.
People without children or any interest in leaving a ﬁnancial legacy these types of ﬁnancial/investment products may not be for you. It also can be an expensive product if you are living paycheck to paycheck with a bunch of high interest debt. Again… this may not be the product for you. But if you are actively investing or hope to do so in the future, you should at least look into Whole Life products, compare it to your 401 K and see how much of a better investment it is in every regard.
NOW, welcome to maybe the best investment vehicle in our world today…. For countless years of my life I really thought the only insurance out there was TERM life insurance besides the obvious of vehicle, home, ect. There are huge differences between Whole Life and Term insurance products. First, you never really own the term insurance product. Then there is absolutely no appreciative value of the product (there are no dividends payed out or guaranteed interest rate APR % as in Whole Life ). There is no “CASH VALUE’ portion as there is with the Whole Life.
Th beneﬁts of Whole Life policies when written correctly are customizable and literally wealth creation vehicles, in part two I will explain what they even compare to.
Hint: It’s way better then your 401K. It’s much better then both the Roth and Traditional IRA’s. Not even comparable really… I do use the IRA’s to defer more earned income after I max my “cash value” whole life product.
Sit down when you read this cause it’s dope and should be the “Rock you build your ﬁnancial house on!”
WHEN I die my family gets the “death beneﬁt” amount it is 1 million dollars. Same thing WHEN my wife passes away, 1 million dollars guaranteed. – “CASH VALUE” portion in the policy. This cash value is something that the owner of the policy can put in extra after the annual amount dues. I can put in $500 or I can put in $50,000.00 It’s guaranteed a 5% ROI (Return on investment). As this money grows its NEVER TAXED until taken out of the account. So instead we borrow against the CASH VALUE portion and buy investment real estate.
A.) The best part is this: If you put money into the CASH VALUE portion of your Whole Life Insurance policy when you borrow against it it still pays you the 5% ROI on the entire amount. Hold your hats! – For example: If you save $50,000 into the CASH VALUE of the account, then buy investment Real Estate, let’s say two rental houses in Lampasas, TX each with down payments of $10,000. In our example there is now only $10,000 in the account but the account owner receives 5% guaranteed interest on the entire $50,000. Literally the only way I know of to make the American dollar do so many things. COMPOUNDING INTEREST! Without even having money in the account.
$50,000 in an account getting a guaranteed 5% ROI on $40,000 that’s not even in the account? It’s in our Lampasas, TX rental houses each cash ﬂowing $500-600/month (My usual ROI in investment real estate in the central Texas are is close to 25%-30%) – We can do this with $50,000 or $10,000 it’s all the same. $50,000/year is the max you can put in it per year without it becoming a different type of IRS TAX VEHICLE.
It is NOT taxed and it cannot be accessed through lawsuits, meaning you are 100 % protected from creditors and again it is taxed at 0% until you take it out but we don’t take it out we BORROW against it.
Is your money you’ve been saving in the bank safe? Can a bank collapse? Why do the largest banks carry Whole Life Dividend Paying Life Insurance anyways? It’s because it’s the safest investment in the world. In part II we’ll discuss the nut and the bolts of pulling money out of the Whole Life products and buying investment real estate with it.