Are you more confused about your life insurance
after you read your policy or after your agent leaves?

THEN LET US EXPLAIN SOME CONFUSING ITEMS IN PLAIN ENGLISH!

Term Life Insurance is Cheap, but you’re missing the boat!

Do you own Term life insurance? Did you buy a policy 5, 10 or even 15 years ago and did not know that your premiums will shortly adjust to monstrous proportions?
Maybe you have heard “Buy Term, invest the Difference”, but have not been putting the difference away consistently?

When someone buys Term over a Permanent type contract they are unknowingly giving up the most powerful wealth accumulating vehicle available.

Please read this, and if you learn one thing from this website,
learn this!

Section 72(e) and 7702 of the Internal Revenue Code,

*The most unique feature of permanent life insurance is that under Section 72(e) and 7702 of the Internal Revenue Code the accumulation of cash inside the insurance contract is tax advantaged. Not only can the cash value accumulate tax free, but the cash can also be accessed tax free.
Hence, the beauty and magic of life insurance: It is a unique vehicle that allows tax favored account value accumulation, allows you to access your money tax free, and, when you die, blossoms in value and transfers income tax free!*

WHOLE LIFE is what gave the life insurance industry a bad name!
You need a degree to read these contracts.

Do you own Whole life insurance?
What if we told you that your WHOLE LIFE is a BIG MISTAKE?

Whole life insurance is an antiquated product and one of the first types of insurance policies issued. The problem is that NOTHING is disclosed, and the industry came under extreme pressure to explain and clarify to consumers in the late 1970’s how the consumer’s cash value was actually working internally.

The industry has tried to disguise high mortality costs and low rates of returns in the form of dividends.

Dividends in a life insurance contract are not dividends in the traditional sense of the word. To prove my point, if you receive a dividend on a stock or mutual fund you pay capital gains tax, but if you receive dividends on a Whole life contract, you do not. Why? Because the IRS determined that dividends in a life insurance contract are actually overpayment of premiums. When receiving dividends on a whole life contract, the consumer is simply getting their own money back.  Therefore, the dividends are not taxable.

If that’s not enough to make you mad and wary of these contracts, how about the fact that mortality costs are extremely difficult to discern?
Expense charges and sales fees are not clear.
Low rates of returns on cash value and expensive loan rates are good reasons to not trust these products.

Variable Life contracts

Do you own a Variable life policy? Has it been losing money or making little gains? Chances are it’s because of market risk. Have you LOST money in yours?

The combination of expense charges, mortality fees, sales charges, and management fees coupled with a loss in the market do not allow this type of insurance to work with separation of Home Equity.

Home Equity is the HOLY GRAIL MONEY, and SAFETY is the #1 Priority. Having a contractual guarantee on premiums is the only way a life insurance product should ever be used.

Universal Life?

Finally a fully disclosed life insurance contract!

But there still may be a time bomb ticking away!

Maybe you have a Traditional Universal Life? Is it going to EXPLODE (run out of cash) because it has been under-funded for so long, and no one ever explained to you what that means or how to prevent it?

We have seen clients that had policies “BLOW UP” in less than 10 years from when we reviewed. That was because the original writing agent MINIMUMLY funded the contract. That is the WORST thing you can do to a permanent Life Contract, and this is why review of current policies is critical.

Imaging thinking that your significant other is adequately covered only to find out 10 years from now that your contract could TERMINATE because enough premium has never been put in. The lack of premium combined with rising internal mortality costs has created huge problems for consumers in the past. This is one of the primary reasons consumers hate life Insurance. How everything works was never explained clearly and concisely. Had the consumer understood all the components they would have been able to make an intelligent decision. This is why we recommend the following:

Indexed Universal Life (IUL) is, in our opinion, the best product that the life insurance industry has EVER developed.

When considering an IUL type contract for Home Equity Management or upgrading your existing policies, it is CRITICAL that the contracts have at least these features.

Contractual guarantees on premiums. One company we use has a cap of 15%. This upside potential, combined with downside protection of at least 1% guaranteed, is why we use only this product for home equity management.

Contractual Annual Reset and Lock in on principal. This strategy means that GAINS get locked in and become principal. If the index goes negative, you will now have a contractual guarantee of 1% where other non guaranteed products would actually lose money. Maybe you have experienced this yourself in the past.

Contractual exit strategy on excess premium over target should a life changing event happen after a bucket has been created. Surrender Charge Waiver type contracts are the only contracts to use with Home Equity Management.

Contractual Zero sum loans on future withdrawals. This feature is available after 10 years.  

We Teach You How To:

• Manage Home Equity Successfully
• Manage your Mortgage to Create Wealth
• How to pay off a traditional 15 year or 30 year mortgage quicker
• Solve IRA & 401(k) Taxation Dilemma’s
• Access Your Money at Retirement Tax Free
• Transfer assets to your heirs tax free
• Have a PLAN B in case Social security or your retirement plan is insufficient.

We strongly feel that Home Equity needs to be part of every Estate and Financial Plan. The Home is simply too large of an asset to ignore. That does not mean that this is SUITABLE for everyone. However, it should at least be considered annually in the review process.

With the potential tax write off on the contribution phase, coupled with the unique advantages of an IUL contract. We strongly feel that not a better opportunity to successfully manage home equity has ever existed.

 

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