When you get a premium bill and your cash flow is limited, you should always pay the base premium first.The more you pay into the policy at that time, the higher rate of return you’re going to get within your policy.The next is the paid up additions rider.By paying the paid up additions rider in the first five years, it will give you access to more cash sooner so that you can start using your policy to pay for the things of life.The third priority is the policy loan interest.If you don’t pay the loan interest, the loan interest will be added to the loan balance and it may constrict the amount of cash value that is available in the future to access via the policy loan provision.The fourth area should be the actual loan balance. As your loan balance gets paid down, your cash equity increases.
Regaining control of your money means putting you in a position where you could access your money when you need it. When we talk about plugging those leaky holes in your financial bucket, it’s literally identifying the five major areas where you are giving up control of your money. Those areas are taxes, how you fund your retirement, how you pay for your children’s college, how you pay for your real estate mortgages and how you make major capital purchases. We do a deep dive as to how you’re using your money in these five areas to show you exactly where you’re giving up control of your money.