11 Reason's to Consider Whole Life for Retirement Vehicle

Continuing on my Infinite Banking theme as of late, I wanted to give a more complete benefits list why to choose a Participating Whole Life policy rather that the meager 401k or mutual fund.  The benefits seem to keep adding up as 401k's are going the route of the dinosaur.

1.  It builds liquid cash reserve of safe money.  Generally, it can be accessed within 5-10 business days.
2.  Cash Value Life Insurance guarantees your investment principle.
3.  You can put as much money as you want -- limited only by the size of the whole life policy -- which you can make as large as you need.  Not so with qualified plans.
4.  All of the money you put into the cash value life insurance policy builds tax deferred.  You avoid paying income taxes every year, so your money grows faster.
5.  You can borrow the money from the policy tax free, without having to qualify for the loan and without contractual withdrawal penalties.
6.  There are no early withdrawal penalties from the federal government.  Not so with qualified plans or annuities.
7.  Loans against the policy come from the general assets of the insurance company, and not from the policy cash value!  In many cases, you can actually earn more on your money than the loan is costing you.
8.  The policy is self-completing, because you have a disability waiver of premium rider that will continue to put the money in for you if you ever become disabled.  Only life insurance offers this unique benefit.
9.  Life insurance provides a death benefit that gives your family the money you intended to save in the event you can't be there.
10.  In most states, life insurance is not attachable by creditors.
11.  Life insurance cash values don't count as an asset when applying for college financial aid.

What is Infinite Banking?

Hi there everyone. Recently I've had a lot of folks asking about The Infinite Banking System and what it is and how it works. Your Banking System is an idea that champions the saving and investment theory. Throughout our financial education we are programmed to think why certain vehicles are the smart for these objectives. Well in this post, I will give you the brief overview of the program and try to dissect it from a newbie's perspective.

To start, let's take the typical retirement plan and focus on what its intent is.  A 401k or mutual fund is designed to save money and let it grow, or so we are accustomed to believing.  When you deposit money into this fund, you expect it to grow at rate of about 6-12% and when you retire, hope that it will have grown enough to provide for yourself a nice nest egg to live on.  There are 3 problems with this:

1.  Taxes- Most retirement accounts tax 1 of 2 ways.  At the time of deposit or at the time of withdrawal.  Either way it is taxed.

2.  Access- Once the money is deposited, there is limited access to that cash i.e. rollovers, money down for home purchase, medical emergencies etc.  If it is withdrawn and doesn't qualify it could come with a penalty.

3.  Risk- These funds are subject to the market and contrary to what some would like to think, it goes down as often as it goes up.

These are three very real issues and The Infinite Banking System solves them all.

Permanent Whole Life Insurance
Let me introduce a very old product that has been around for over 100 years that few know much about but has many great features. One feature is that the policy holder is the sole owner of the policy.  This means that first priority is given to the owner before the insurance company, the government or even the insured.

Example: (True example) I am the owner of a policy that insures my wife.  I pay the premiums and in the unfortunate event that she passes away, the beneficiary (me) and contingent beneficiary (my daughter) will receive the death benefit. I also have dibs on all cash values.

A Whole Life Insurance policy is a contract that no government can touch and no insurance company can void.

Let's look at how whole life insurance can avoid the 3 problems I mentioned earlier.

1.  Taxes- The government cannot tax earnings from cash values and dividends paid on whole life policies unless they are considered MEC (Modified Endowment Contracts).  There are certain situations where whole life insurance will become a MEC and you should speak with a agent who is well trained before this happens.

2.  Access- You may access your cash value in your policy at any time with no penalties throughout the life of the policy.  Unlike 401k's.

3.  Risk- The company I write policies through performs around 5% returns every year and has paid dividends every year since there existence beginning in 1904.  When you reinvest the dividends it performs even better.


*This is why Whole Life is a better option than 401k's and mutual funds and we haven't even started on the Infinite Banking part yet.


Where does the Banking part come in?
You must have an entrusted agent to make sure your Whole Life policy is set up correctly and when you do at least 55% of every dollar paid in premiums should be available to you through cash values.  So if you pay $300 in premiums $165 is available for you to take out.

Now this is where you have to treat your policy like a bank and not an insurance policy.  Take the $165 out, but Pay It Back!

When you go to a bank to borrow money, they make money by charging you interest.  Wouldn't it make sense to charge yourself the interest instead of giving it to the bank?

The policy performs so much better not only when you pay yourself back the loan, but its golden when paid back with interest!  I don't have the illustrations to show you but there is a wealth of info at www.infinitebanking.org.  Nelson Nash is the creator of this process and his book details all of the illustrations there.

Just think of all the things you finance throughout your life; cars, houses, boats, clothes, vacations, gifts and the list goes on and on.  An average American spends 34.5 % of their income in interest through their life. This process if funded and set up correctly could even one day finance your house.  And you know how much interest you spend on a mortgage (nearly the same amount as the actual price of the house!)

Well there you have it. I wanted to give you the basic rundown of what Infinite Banking is.  When you see the benefits of whole life over mutual funds coupled with The Infinite Banking System, this process can change your entire family tree by showing your loved ones how to save and invest properly. It's not only an insurance policy, but a total new approach to saving and investing.

Contact me to get more info on how to start your own Infinite Banking System!
Ask me for free a copy of Nelson Nash's book, "Becoming Your Own Banker".

Infinite Banking Concept

I recently started a system of my own and I cannot tell you how much I am relieved to have done so.  In this economic climate, no one is sure what the next 5-10 years holds.  This vehicle for your financial strategy can help.  Watch the whole video and contact me if you have more questions.

How To Achieve Longevity

Via: TermLifeInsurance Blog

Saving vs. Investing

I am an avid supporter of the IBC (Infinite Banking Concept) and have been studying these principles since 2005.  There is a huge misconception between savings and investing.  You will see in many publications, particularly ones that support 401k's and mutual funds, use the term saving instead of investing.

Read article here

This article by Dwayne Burnell, is an enlightening appeal to the financial thought process.  A whole life insurance products that supports the IBC concept can provide for steady gains and extremely limit loss while still providing for retirement.  

The Truth About Participating Whole Life

On June 4th 1963, a life insurance company issued a 29,000 participating whole life policy to a client name Joe at age 27.  It was then projected to accumulate 44,651 total cash value by age 73 based on the company's dividend scale.  Joe paid his annual premium of 527.22 every year for the past 46 years and the only withdrawal was 174.73 in dividend values which occurred April 1971.  On June 4th 2009, his annual policy statement read as shown:

Table One

Annual policy Statement as of 6-04-09

                    Death Benefit

                        Base policy death benefit                                         $29,000

                        Paid up additions death benefit                                 113,560

                        Total death benefit                                              $142,560

                    Cash Value

                         Guaranteed cash value                                            $20,494

                         Cash value of paid up adds.                                      92,552

                         Total cash value                                                  $113,046

                          Net premiums paid from

                          6-04-63 thru 6-04-09                                              $24,077

Was Joe's decision to purchase a whole life policy over 46 years ago a good decision?  Some consumers believe whole life is an obsolete product that pays poor return.

Why then do many critics of whole life support the buy term and invest the difference theory?  My thought is that the common belief that a good stock or mutual fund should outperform a whole life policy, has run its course. This is what everyone was saying and now those who had their money in the market have watched there life savings dwindle and no one knows where the bottom is now.

This is an idea that many rich have used for over 200 years.  Whole life has literally been around since our country's inception.  Now that the market has proven its unreliability, whole life is returning as more than a safe investment, but rather a high returning investment.

Now I cannot guarantee your policy's performance, but I can show you how these policies are able to perform so well when compared to other strategies like:

• Whole Life vs. bank CDs
• Whole Life vs. savings bonds
• Whole Life vs. Term Insurance + Invest
• Whole Life vs. Guaranteed UL
• Whole Life vs. UL + Invest
• Whole Life vs. Variable

Whole life insurance is one of the least understood forms of life insurance.  It is not an obsolete product nor a rip-off.  It can be the best type of insurance for some and if purchased at an early age and held long term, the true cost of coverage has proven to be less expensive than other types of insurance.

You can have your own illustration simply by emailing the address below.  Just give your date of birth, zip, and amount of coverage.  BrandonVincentua@gmail.com

Types of Life Insurance

It is hard to believe that the oldest form of insurance is the least common.  Life insurance has been around for hundreds of years where as health insurance came out within the last century.  The life insurance industry hasn't really changed with all the insurance reform discussion, and the types of insurance are unaffected as well.  I will discuss the basics of the differences of life insurance rather than get into all the boring details and spare you the classroom session.


The types of insurance can vary depending on what suits your lifestyle.  If you are looking to protect a particular period of time or want the cheapest form of life insurance then term would probably suit you.  And if you think you want reliable premiums and coverage that lasts your entire life then whole life would be your best bet.  


Here are 3 types of life insurance:

Term life insurance

1.  Term life insurance- This type of life insurance coverage guarantees a certain term like 5, 10 or 20 years.  The premiums stay the same and and the end of the term you may be qualified for more coverage but the premiums would go up.  During the term, if the policy lapses there is really nothing to show for it unless you added an optional benefit rider.  This is generally the least expensive form of insurance.


2.  Whole life insurance- This type of life insurance guarantees a death benefit for an entire life.  The premiums are set but are higher than term insurance.  This type of insurance also creates a cash value that the policy holder has access to and may take out loans if he/she likes.  Whole life is also known as permanent life insurance because can last for the policy holder's entire life.

3.  Universal life insurance- This type of life insurance is kind of a hybrid between the two.  It is a type of permanent life insurance based on a cash value. That is, the policy is established with the insurer where premium payments above the cost of insurance are credited to the cash value.  Payments are not needed every month however, the cash value could run out so it should be monitored as the policy ages.  There is also a variable universal life insurance which uses the stock market and can get very complicated.  Please see your life insurance professional for details.

And these are the 3 types of life insurance that you should be familiar with.  There are other types but most of them play off the three basic types that I mentioned here.  If you are interested in any of the insurance plans mentioned feel free to contact a life insurance professional for more information.

Term Life Insurance

I know I have been on a rant lately about Whole Life insurance.  I am actually in the process of buying my first Whole Life policy now.  I would like to mention Term insurance now, a policy most folks like because of its affordability.

If you haven't talked with your life insurance agent in a couple of years, talk to us and we can probably save you money!
 
Do you wonder if you have enough life insurance? Are you married? New child? New home? Job promotion or loss? These are all good reasons for you to contact us and check your coverage now.

Term Life Insurance rates have dropped dramatically in the last decade. At (your website or name goes here) we research the top insurance companies in the country for you, so you only make one call - to us! Let us find you the lowest cost term insurance for you to protect your family. 

Plans as low as $3 a month!

We also help clients in poor health get life coverage. Even if you think you can not get protection, please contact us, so that we can help you protect your family. We specialize in poor health clients.
 
All Quotes are Confidential, No Cost, and No Obligation. Contact us today!
 
This information is strictly confidential and will not be shared with anyone.
 

Other Insurance Services

I just had the most interesting meeting with an industry veteran who shared his afternoon with us about what he thinks the insurance industry will look like in 3 or 4 years.  My first take from him was that it was just another carrier looking to wholesale his products out to new agents and I'm fine with that, but sometimes those are really boring and we usually have a lot of pressing matters at hand which usually makes these meetings obnoxious.  

However, Richard Wilkes of Humana brought and obvious point to light when he said that the new mandate will be that 85% of premiums paid to the insurance company must be paid back to the customers.  Wow, I knew that was one of the policies changing with the reform bill but this had just hit me.  Insurance companies will be left with 15% of their income to, pay agents, pay employees, and market to potential clients.  This doesn't leave a whole lot to spread around.  

I had heard the reform bill could possibly cut agents commissions, and Richard's insights seem to have driven that point home.  My last question to him was, "So is there any hope for new agents?" and his response was "Absolutely!  40 million folks will be turning 65 very soon."  I didn't think I'd be into that market.  We have Crawford for that and he handles most if not all of our senior services inquiries.  Richard did however share several new products that I could market to them.  Memorial fund, critical illness plans, disability insurance, and junior estate builder all through Humana make up what he has shown me.  These are wonderful for the 65 and over crowd are easy enough for me to explain lol.  

Memorial Fund- is a permanent whole life policy that has a benefit up to 25,000 and also has guaranteed cash values.  It is great for funeral expenses, medical bills, legal fees, taxes and other expenses.  This fund also has an option that allows you to pay for only 10 years and is done, no more payments forever.

Critical Illness Cash Plan- Every 34 seconds someone in the United States suffers a heart attack.  This plan will give you guaranteed cash if you 1: have a heart attack, 2: diagnosed with cancer, or 3: need a transplant.  It will even cover loss of sight, loss of speech, permanent paralysis, etc.  This policy comes with a return of premium rider option, so after 20 years you can receive a full refund of all premiums paid.

Disability Insurance- Consider this plan a paycheck protector plan.  If you become totally disabled as a result of sickness or injury, this plan will provide you with a monthly income.  Remember the duck commercial where Yogi Berra says, "If you get hurt and miss work, it won't hurt to miss work".  I love Yogi.

Junior Estate Builder- allows protection for a child or grandchild and provides financial security for a lifetime.  It starts out with term life and converts to whole life at age 25.  The whole life policy builds cash value with the option to increase coverage.  Plan one is $35/yr for 15,000 and Plan 2 is $45/yr for 20,000.

These lines are what I carry through Humana.  If you would like to know more about these just email me.  I have a variety of other products that go along with Health and Life Insurance.  We also offer Identity Theft Solutions.  I don't have a lot of details, but I can get that information for you.  Don't hesitate to call or email.  

Until next time, lata brochacho!

7 Reason to buy Whole Life Insurance

So I've decided to give politics a break.  It has really heated up lately.  I don't remember things so polarized as they are right now.  I wish everyone could take a break to and go home.  Be thankful for this country and enjoy it for what it is.  Something tells me it won't be this way for long.

I would like to talk about life insurance.  Did you know that 56 percent of married couples believe that their current life insurance coverage is inadequate.  I know most folks like Dave Ramsey and I agree with most of his outline for becoming debt free but I do not agree with buying term and investing the difference.  I happen to believe that permanent life or whole life is a far better buy.  These points should shed some light on the subject.

Facts about Whole Life
1.  Premiums guaranteed for life- Once you enroll in a whole life policy it will last you your entire life.  The premiums will not increase.

2.  Death benefit is guaranteed for life- The face amount, or coverage amount is guaranteed.  Some policies will decrease in value as the client ages due to higher risk of death, but once whole life is in place, it is there to stay.

3.  Guaranteed cash value growth- The cash value in most cases, is guaranteed to increase which is better than mutual funds which cannot guarantee a growth.  Here is where Dave and I disagree.  He claims term is much cheaper and you can invest the difference in a mutual fund earning 12%.  Well show me a mutual fund that earns 12% and I will be all over that!  I have still yet to find these funds he speaks of.

4.  Liquidity through loans against cash value- You may take out loans on the cash value of your policy for the entirety of your policy.

5.  Can provide retirement income- If the cash value of the policy is high enough, then the client may take retirement from the cash value and retain the death benefit originally purchased.  Even some commentators in the news media are gaining an appreciation for the value of whole life, especially after the stock market downturn of late 2008 and early 2009.

6.  Not accessible to creditors- Whole life is an exceptional wealth building vehicle that not only protects, but builds wealth and no one can touch it.

7.  Income-tax-free death benefit- My favorite part about whole life is that Uncle Sam cannot touch it either.  He cannot touch the loans on the cash value, the death benefit, or the increases in cash value.  This product is not taxed period.

So here are a few reasons to get you started on your journey to whole life.  I have much more I'd like to write about, but maybe another time.  In the meantime check out  Nelson Nash's book on the Infinite Banking Concept.  It shows many ways to take advantage of whole life insurance.