On a daily basis, it seems as though we talk to one of two people. The first is a young person who sees no need for cash-value life insurance, and the second is a person in their forties, fifties, or sixties who is saying, “Man, I wish I had this information and acted on it 20 years ago.” Here’s the secret: cash value life insurance is a timeless asset.
So how is whole life insurance designed for cash accumulation a timeless asset? For every milestone in life, there is an opportunity to take a policy loan to finance that cost.
For example, maybe you just graduated college and you have some student loans. You could take a policy loan to repay those student loans and then pay yourself back. And maybe you want to get married. You could take a policy loan and then pay yourself back. And then maybe you have a kid and you want to send them to a private school so they could get a good education. You could finance that expense through your life insurance policy and not have to worry about being pinched for cash flow in all these places throughout your life.
Perhaps you want to borrow against your cash value to buy rental real estate. You can borrow against the cash value for the down payment, take a conventional mortgage for the balance, and have your tenant pay back both of those loans for you. And then when the policy loan’s paid off, guess what? Now you can buy another piece of property using the same process.
Maybe you’re feeling entrepreneurial and you’re ready to start your own business. Guess what? Your policy cash value is available and you could take a policy loan to self-finance that start-up.
Or, what if you’re already a business owner? You can borrow against your cash value to expand your business, purchase inventory, or make a new hire.
The point is this: you start out with a policy here at the beginning of your life and at some point you pass away. In between, there are multiple opportunities for you to have these milestones in life, and you can self-finance those. Borrow, pay back, borrow, pay back, borrow, pay back. Then you retire, use the dividends to supplement your retirement income, and pass away. Then, the death benefit goes to your family income tax-free.
So think about this: From the time you graduate from college, let’s say from age 21 all the way until the time you die, you have complete liquidity use and control of that cash to finance all of the milestones in life. And then you have a legacy built in for your family or charity of choice.
If you’d like to get started with this timeless asset of cash value life insurance designed for cash accumulation, please visit our website at tier1capital.com to get started today. Feel free to schedule your free strategy session or take a look at our web course where we go into detail about how we put this process to work for our clients.
And remember, it’s not how much money you make, it’s how much money you keep that really matters.