Infinite Banking: Maximizing Financial Windfalls 0:00:45 - Designing Policies With Windfall Considerations 0:08:45 - Term Length and Policy Efficiency 0:18:40 - Policy Loans and Dividend Payouts 0:27:56 - Issues With Skinny Base Policies 0:31:52 - Insurance and Investment Performance Misconceptions 0:35:24 - Understanding Fragility in Insurance Policy Design Today, we're answering a listener question: Can you do a future episode on what to do with a windfall? Specifically, the use of a premium deposit fund over many years and dumping it into a 7-pay or 10-pay policy. I would love to hear how this could be an option for inheritance or selling a business or property. What should you do when a financial windfall lands in your lap? Whether it's from selling a business, a property, or receiving an inheritance, knowing how to manage and maximize a large influx of cash can be daunting. On this episode of the Money Advantage podcast, we tackle this critical question by breaking down strategic approaches tailored to individual financial goals and circumstances. Using the analogy of a sailboat, we explore how to incorporate additional funds into a well-balanced policy without risking instability or running afoul of modified endowment contract laws. Our discussion goes deep into the considerations for managing windfalls through life insurance policies. We look at the sustainability of funding new policies beyond the initial windfall and the implications of different funding durations, like 10-pay versus 30-pay options. The potential benefits of convertible term life insurance and practical steps for integrating significant windfalls into your policy are highlighted. You’ll gain insights into cash flow strategies and premium deposit funds, all aligned with long-term financial goals. Finally, we examine the benefits and pitfalls of various policy designs. From the "skinny base policy" with large Paid-Up Additions (PUAs) to the risks of prematurely hitting human life value limits, we cover it all. Our conversation also dives into the actuarial decisions that impact policy performance, emphasizing the importance of flexible policy designs to adapt to future changes. 👉👉 Want the Exact 🏦Privatized Banking🏦 Strategies Our Clients Are Using to Build Financial Freedom? CLICK HERE For the #1 Secret: privatizedbankingsecrets.com/... 👉 👉 Listen to The Money Advantage podcast: themoneyadvantage.com/subscri... 📕📕 Estate Planning With a Purpose: Our faith-based framework helps reveal what you need to do TODAY to strengthen, protect, and provide for your family for generations to come. sevengenerationslegacy.com/book 👉 👉 Ready to move forward with Privatized Banking, alternative investments, or cash flow strategies to coordinate your finances so that everything works together to improve your life today and accelerate time and money freedom? Book an Introductory Call with our team today: themoneyadvantage.com/calendar/
The boat analogy was so good. Bruce can get very granular talking about these details, but those really matter…….However, Bruce and Rachel always break it down for simplicity sakes, as well, and that is greatly appreciated. So thanks for that! 😊👍😁
Can you discuss why Lucas went with a paid to age 75 with a 20 year term instead of a paid to age 95 with a 30 year term? Also do you prefer to use vertical bar charts instead of standard policy illustrations like Nelson did on his presentations?
Bruce, have you heard of original age term conversions? That has to be one of the biggest hacks in the financial industry, time-value-of-money reversed!
Yes, it is simply as it sounds. When you convert, you get the conversion at the age you put the term in place, not your current attained age. Once again there are no deals in insurance. Convertible term is more expensive than non convertible term, and original age convertible term is more expensive than attained age convertible term. I know of no mutual company that has original age convertible term.
We design policies based on the client’s unique situation, versus using a cookie-cutter approach and designing all polices the same. It really depends on the company, the product, and the client. For instance, there is one product we use where we will often have the base premium at 50-60%; however, the first year cash value available would be in the 70-80%+ range. The main point is that this is not a one size fits all, and premium splits, the way discussed by most, do not apply equally to all products. It’s important to have an abundance mindset when looking for the best life insurance companies to work with. We believe compensation is a good thing and should be based on the amount of value you receive. Even more importantly, there are risks associated with having too little base premium, which we have brought up in prior episodes, that people need to understand.
Infinite banking is a concept that involves using a whole life insurance policy as an cashflow management system. Check out this article and podcast: themoneyadvantage.com/infinite-banking-concept-unlocks-your-financial-life/. We also have an RUclips playlist on this here: ruclips.net/p/PLPvxD-a8qNrnyBzvPRu4JQEtlBEGERa_W, and we have a
Infinite Banking: Maximizing Financial Windfalls
0:00:45 - Designing Policies With Windfall Considerations
0:08:45 - Term Length and Policy Efficiency
0:18:40 - Policy Loans and Dividend Payouts
0:27:56 - Issues With Skinny Base Policies
0:31:52 - Insurance and Investment Performance Misconceptions
0:35:24 - Understanding Fragility in Insurance Policy Design
Today, we're answering a listener question:
Can you do a future episode on what to do with a windfall? Specifically, the use of a premium deposit fund over many years and dumping it into a 7-pay or 10-pay policy. I would love to hear how this could be an option for inheritance or selling a business or property.
What should you do when a financial windfall lands in your lap? Whether it's from selling a business, a property, or receiving an inheritance, knowing how to manage and maximize a large influx of cash can be daunting. On this episode of the Money Advantage podcast, we tackle this critical question by breaking down strategic approaches tailored to individual financial goals and circumstances. Using the analogy of a sailboat, we explore how to incorporate additional funds into a well-balanced policy without risking instability or running afoul of modified endowment contract laws.
Our discussion goes deep into the considerations for managing windfalls through life insurance policies. We look at the sustainability of funding new policies beyond the initial windfall and the implications of different funding durations, like 10-pay versus 30-pay options. The potential benefits of convertible term life insurance and practical steps for integrating significant windfalls into your policy are highlighted. You’ll gain insights into cash flow strategies and premium deposit funds, all aligned with long-term financial goals.
Finally, we examine the benefits and pitfalls of various policy designs. From the "skinny base policy" with large Paid-Up Additions (PUAs) to the risks of prematurely hitting human life value limits, we cover it all. Our conversation also dives into the actuarial decisions that impact policy performance, emphasizing the importance of flexible policy designs to adapt to future changes.
👉👉 Want the Exact 🏦Privatized Banking🏦 Strategies Our Clients Are Using to Build Financial Freedom? CLICK HERE For the #1 Secret: privatizedbankingsecrets.com/...
👉 👉 Listen to The Money Advantage podcast: themoneyadvantage.com/subscri...
📕📕 Estate Planning With a Purpose: Our faith-based framework helps reveal what you need to do TODAY to strengthen, protect, and provide for your family for generations to come. sevengenerationslegacy.com/book
👉 👉 Ready to move forward with Privatized Banking, alternative investments, or cash flow strategies to coordinate your finances so that everything works together to improve your life today and accelerate time and money freedom? Book an Introductory Call with our team today: themoneyadvantage.com/calendar/
Family member recently inherited funds, thanks for the valuable advice!
Glad to hear it! Thank you for watching!
The boat analogy was so good. Bruce can get very granular talking about these details, but those really matter…….However, Bruce and Rachel always break it down for simplicity sakes, as well, and that is greatly appreciated. So thanks for that! 😊👍😁
I'm glad you enjoyed the boat analogy!
Can you discuss why Lucas went with a paid to age 75 with a 20 year term instead of a paid to age 95 with a 30 year term?
Also do you prefer to use vertical bar charts instead of standard policy illustrations like Nelson did on his presentations?
Are your questions related to this video? Do you have a timestamp in the video you can point to?
Bruce, have you heard of original age term conversions? That has to be one of the biggest hacks in the financial industry, time-value-of-money reversed!
Yes, it is simply as it sounds. When you convert, you get the conversion at the age you put the term in place, not your current attained age.
Once again there are no deals in insurance. Convertible term is more expensive than non convertible term, and original age convertible term is more expensive than attained age convertible term.
I know of no mutual company that has original age convertible term.
@@TheMoneyAdvantage There's one out there that will give you original age term conversion (OATC)... let's talk.
These bigger base pilcies are higher commission to the agent?
We design policies based on the client’s unique situation, versus using a cookie-cutter approach and designing all polices the same. It really depends on the company, the product, and the client. For instance, there is one product we use where we will often have the base premium at 50-60%; however, the first year cash value available would be in the 70-80%+ range. The main point is that this is not a one size fits all, and premium splits, the way discussed by most, do not apply equally to all products. It’s important to have an abundance mindset when looking for the best life insurance companies to work with. We believe compensation is a good thing and should be based on the amount of value you receive. Even more importantly, there are risks associated with having too little base premium, which we have brought up in prior episodes, that people need to understand.
What is infinite banking?
Infinite banking is a concept that involves using a whole life insurance policy as an cashflow management system. Check out this article and podcast: themoneyadvantage.com/infinite-banking-concept-unlocks-your-financial-life/. We also have an RUclips playlist on this here: ruclips.net/p/PLPvxD-a8qNrnyBzvPRu4JQEtlBEGERa_W, and we have a