I just filmed the update for the changes in the whole life market in 2023. I just took this conversation to the next level in this video, enjoy: ruclips.net/video/kFIboJEbIYM/видео.html
Every insurance salesman sells the client a properly structured policy. As soon as the client talks with another insurance salesman, a few years down the line, s/he is told that the policy is not properly structured, but all is not lost, he has a properly structured policy to sell you.
I just did an *UPDATED VERSION OF THIS VIDEO* for the new 7702 regs on How to Structure a Whole life Policy in 2022: ruclips.net/video/EBGEkfDO1rw/видео.html
What makes this guy more interesting than any other videos I’ve ever watched in all walks of life he actually takes the time to reply to each and everyone of you no matter how silly one of your questions was he still answered. That people should deserve some respect and for the fact that he is not trying to gain anything from any of this because he has encouraged all of us not to just pick him find her own. Which in my view makes me want to trust him more. I am seriously thinking of emailing you Directly to see whether you can help me or whether I have to pick someone from the UK many thanks see you guys
Roger Harris thanks for the kind words. Feel free to reach out any time. I am happy to do a zoom meeting. I don’t personally have any contacts in the UK, but we can certainly talk through some stuff that might be helpful for you. You can set up a time with me at LIFE180.com if you want.
Good video. I've been getting training on the ibc concept for my own usage and for my clients. This is the foundation to building generational wealth no doubt
What are some ways to create cash flow outside of wall street? Comment below! Learn How to use Whole Life Insurance As A Cash Flow Investment: ruclips.net/video/HDORbHQqOLA/видео.html Let's discuss your finances or life insurance business - click on the scheduling link in the description.
If you would like to set up a call to see how to properly structure a whole life insurance for you, use this link to set up a call: calendly.com/LIFE180/ClarityCall
Also, if you are thinking of buying term and investing the difference, you need to watch this video before you make your decision: ruclips.net/video/4B3GCmBL7DU/видео.html
@J C there are no fees to have a conversation with Caleb’s team using that link. Depending on your needs, they will determine which program you belong in. If you just need an optimized policy, there are no fees. They will get you set up. They will get a commission from the insurance company. That’s how it works with life insurance. However, it’s key to know that they take about a 90% commission pay cut in order to design properly to maximize your cash accumulation. It is worth a call with them, trust me
Another great quote from Don Blanton: life insurance is the only asset that will ensure that your plan will happen no matter what else happens, even if you aren't there to see it happen.
I've loved the idea of whole life insurance and it's rider polices for the longest time, but had always been suspicious of HOW it's money borrowing worked. Never got that clarity until now. I'm always for borrowing money and let my saved money and assests grow. With this video breaking it down, especially with the 3 scenarios of car buying, I've gained tremendous confidence in starting a whole life policy now. Thank you!
Awesome video guys, thank you for putting this together. Lol first off, Chris, when you mentioned the country being in debt $21 Trillion, and 4 years later we're now at $32 Trillion, I just thought how out of control this system is. Regarding the 4% growth, has that gone up now that interest rates have gone up and is that 4% net after all company expenses? Also, what is the average commission percentage on a whole life policy with paid up additions?
Is this a dividend-paying WL policy from a mutual insurance company? If so, I don't see where you are illustrating dividend-funded PUA's. I know that dividends aren't guaranteed, but there are plenty of mutual insurance companies out there who have paid a dividend every year for a century or more.
I seriously doubt that this guy is a Nelson Nash Institute certified practitioner. It looks more like they are front loading a major death benefit since it's taking 3 years to get any cash value. I would avoid them and go find someone who is certified with NNI. Good luck : )
You clearly didn't watch the video. The point is that the first policies they are going through that don't earn cash value very quickly are not properly designed policies.
@@drewangell1457 Thanks for your reply three years later. Now, I may have missed the part where they said, "this is an example of how NOT to....", but the structure of my question, "I don't see where you are illustrating..." is an obvious indicator that I DID watch the video. Thanks again.
Buy Term and invest the difference . Do u have a savings plan with your car and/or medical insurance. Then why would you have a savings plan with your life insurance company? Guess who keeps and control your savings, think about it
That's an apples and oranges comment. Life insurance companies are the best FINANCIAL institutions on the planet at managing risk. Better than the bank that used fractional reserve banking and is leveraging your money for their gain. When you have money in a whole life policy, YOU control that money and have access and flexibility. If you say anything to the contrary, it's apparent you don't know how it works and you just listen to Dave Ramsey and are parroting his bad information. Just look at the math...tell me I am wrong then...give me actual facts that prove me wrong. You can't. Give it a shot though :-)
Categorically false statement. I could show you how to use WL as an asset in a way that would CRUSH your investing strategies...We are going to be creating a ton of content on all this, so keep on the lookout.
Does the whole life insurance policy guarantee returns the same way that a savings account does? What if there is a natural disaster and a large portion of the insured population dies and the company has to pay out a death benefit, does the insurance policy still pay out/exist ? Is the 5% interest to borrow money against your built in cash value variable or set in stone ? I think this info is important to really make an in depth comparison. Thanks
While life insurance policies are not FDIC insured, most states do have certain guarantees that back the guarantees of the insuring company. Furthermore, if we truly have a pandemic where a high percentage of the population is wiped out, honestly, I think we have a lot more to worry about than your policy. To take it a step further, I would say that the FDIC is woefully underinsured and if there is another major financial crisis, they are leveraged WAY TOO MUCH. The FDIC won’t be enough. That will be part of the discussion during the next financial crisis...and that is FAR more likely than a large part of the population passing away.
@@loriannevogt9488 I dont think there is a risk that a major portion of the population will die.... and I would say right now whole life insurance Is a more important asset than ever for safe money because of money printing and inflation more than anything else....
Hey, im in canada as well, and im wondering what company i can go with that is a dividend-paying Whole Life policy from a mutual insurance company. Do you know of any trusted ones?
How do you think the corna virus and the lockdowns are going to effect the insurance industry in the future? Is it going to be better, worse or the same? What are your thoughts/predictions on this? And which type of insurance should i study...right now im studying life and health, should i add anything?
I would say that the pandemic is going to create stresses across all sectors of the financial industry. What's more important to me is how it will affect people working, saving, and trying to thrive. I think my message is more relevant now than ever. If you haven't watched the LIFE180 Pyramid talk, watch it. It speaks to why having a properly structured whole life policy is so important....especially in these times.
Assume a $500,000 whole life insurance policy. As the cash value grows, the risk ($500,000) to the insurance company decreases. As the risk decreases, I assume the mortality expenses, to pay for the $500,000, are reduced as well. Correct? Example: If the total mortality expenses, in Year 1, are $1,500 with $0 cash value, then I assume that as cash value grows, then the mortality expense will be reduced, since the insurance company risk is reduced, correct?
Great video but one question: Lets say you pay your policy for 30 years. You build up your equity and DB. If you stop paying your premium, is the death benefit locked in?
once again, it depends on how it is structured. It can be locked in forever, certainly. You can do a death benefit reduction, or you can keep it increasing and keep it a level amount (say $500,000 above whatever cash value you have in the account). It simply depends on your objective.
Well, there are different variables. The guarantee on a whole life policy. currently is 2% with a non-guaranteed dividend of 5.2%. While the 5.2% is not guaranteed, the companies we use have paid EVERY YEAR for 110+ consecutive years! That said, the 5.2% is also an 80 year low for the dividend....so if it gets higher as interest rates increase, the performance will actually improve from what I showed in the video. Hope that answers your question.
Buy term invest the difference into a Roth IRA or mutual fund. Don’t buy whole life it’s just more expensive for less. Don’t make insurance a investment that’s not what it’s meant for. How can a agent sell a insurance/*investment* with no security license? You’re cost of insurance goes up each year as you get older they will eat up your cash value with fees and charges.
Absolutely if you are in decent health. It’s always worth going through the process to see if you qualify. Use this link to set up a call if you want: Calendly.com/_life180/claritycall Hope that helps!
Great video thank you for this. I was wondering is there a way to do a PUA Whole life insurance you can't get that also incorporates dividend payments?thank you
Absolutely. There are strategies. I would suggest you speak with Caleb's team to see if any of them make sense to you. At the end of the day, if you align with the principal's, then it makes sense to see what a customized policy would look like for you. You can speak with someone on Caleb's team going to life180.andasset.com
Wait, so if you borrow from the cash value it affects your internal rate of return? I thought that you are just borrowing money directly from the insurance company’s reserves and the CV grows at the compounded annual interest rate. What am I missing here>
Can this work with an IUL? Please explain how it would work if I took out a loan for $10k and want to pay it back with the same interest that a bank would charge of say 8%.
If you take a loan against your policy for the car, you no longer have access to it in the policy because you just used it. The power is the fact that you took the loan for $50k to get your car, but the $50k in your life insurance contract, while no longer liquid, is still growing at its full value with uninterrupted compounding. It's quite powerful.
Correct. You can take a regular car loan and keep the money in your policy - if the car loan is 0% or 2% financing or something of that nature. However, the benefit of having the policy loan is the fact that it won't hurt credit and has more flexible payment terms if you run a business and have big cash flow fluctuations.
Awesome video on who to utilize whole life insurance. My question is that when you put in so much PUA, your cash value is much greater. When you get older or rather when you die, the insurance company get the cash value and your beneficiary gets the net death benefit. Is there a way around that? I've read online that you can call up the insurance company and convert the cash value to boost your death benefit is that true? Or you need a specific rider stating you can do this? Also, if I'm super lazy or I didn't get the chance to look for investments, should I still get whole life insurance with suped up PUA? I'm 36 and about to start my 6th year of whole life, and have a good balance of stocks and cash at the moment.
There should always be a spread between the DB and CV. If there isn't, there is a problem. There are many ways to address this. It's a bit more involved than a RUclips response. If you would like to set up a conversation, you can do so here Https://life180.andasset.com
So true enough the IRR sucks in their initial example sucks. Nice to have some honesty at the outset. Even still you will never find an “ Inflation adjusted” return column in any insurance illustration. If you think the government calculations of sub 2% for inflation are correct now or will be in the future get ready to lose purchasing power. Also explain to me how these insurance titans will remotely match past returns with the US 30 year treasury below 3%. Lower -even negative rates are coming in the US. They are baked in the cake demographically- just like Europe and Japan. The easy answer is - the returns of the past won’t be possible .
Please explain how exactly how I borrow the money? Is it borrowing against the cash value or the death benefit? Additionally what is the face value? Is it the "death benefit "? Thanks
You are borrowing from the insurance company's general fund. During life you use the cash value as collateral. If you graduate with outstanding loan then the death benefit is reduced by loan amount plus interest occured.
Nathan if you had a $2700 a year policy and put $27k of you $40k into PUAs policy. You could take a policy loan equal to cash value. Make a deposit into PUA and take a policy loan up to 90%. Treat it like a saving account.
What about the interest that the loan is going to charge? That is going to accumulate even more than the cash value if we don’t repay it. Sure the narrative is you can get a loan against your policy but no one talks about interest that comes with it which makes the whole life policy not lucrative. So technically we never can access money tax-free, there is always some kind of “extra” money we end up paying. These revenue agency knows all hooks and crooks.
This is actually not an accurate statement. Sure the interest you pay taking a loan against your policy has a cost associated with it. But the key is you're taking a loan against it (as collateral), not from it. Meaning while you're paying interest on the loan, all the cash value in your policy is still earning money. If you get a 5% loan and are earning 5% on your money, you are still actually ahead. In addition, a second level strategy is using the CV in your policy as collateral for other lenders who can give better rates. In which case, you can take advantage of those lower rates. Just know there will be more structure and more restrictions with outside lenders. That'll be fine for some and not for others. It really just depends what you want to use it for.
What happens with this plan if in year 15 you can no longer contribute? Would like to see income lapse scenarios vs. other approaches (e.g. term and invest).
@@SapphireSweed Thanks. Out of my price range. I have a old one $40,000 policy with a $15,000 cash value that's paid up. I think I will stick with it. Oh, btw, what the policy amount for the $200 mo. plan you just quoted.
Ohio National for IBC. Mass Mutual is great One America is great for the right person However, I would defer you to Caleb on that one normally as I have not been licensed for several years... I simply love guiding entrepreneurs to this strategy. I have Ohio National personally.
connie b. Dellobuono sorry, but for accumulation, none of those make the list. Especially if you are talking about structuring for infinite banking. And seriously, you are gonna spam your phone number? Smh.... Do you really think anyone is going to call when you spam dump your phone number in a RUclips comment? Come on now... That’s why life agents get such a bad rap...
Let say you get a car loan for 40000 at 2.9% . What is the break even percentage for borrowing from your whole life at 5% policy , considering policy growth? If you could give an example
There are many ways to accomplish it. Policies are owned on individuals. Often for legacy and long term banking strategies they are owned inside of different types of trusts. But a simpler version is getting each family member a policy that is properly structured and using the banking strategy that way. Also, older, less healthy individuals can often times own the policy and insure a younger person in the family (typically one of their kids). Does that help?
@@LIFE180 Somewhat, perhaps a video to explain this in greater details would be interesting to viewers. We keep seeing videos that talk about this concept and how the Rotschilds leveraged this concept for family legacy. Was wondering how we could do the same and leverage a single pool with multiple family contributing members to accelerate growth and borrowing capital for Real Estate investment. Thanks for this great informative video. No other folks have explained the different kind of policy structuring instruments e.g. PUA Rider.
@@alaingoyette7103 thanks for the feedback. I am taking another trip to Denver to film with Caleb again at the end of August. I'll put this on the docket.
Many whole life companies offer a 5% dividend. Also, long term over the past 30 years, many policies have netted over 5% after all costs. Are they going to net 5% after expenses right now? No. But it's about thinking long term. They will over the long run if rates go back up. We have been in a very artificially low interest rate environment. check out the updated video to this with actual illustrations pinned at the top of the comment section on this video.
I have seen it explained as a 10/90 split elsewhere, Kaleb you explained in a totally different way. How does adding or not adding PUA riders affect the DB ?? A little confused here....can you clarify ?
I’ve read several books, done hours of research, and I am ready to start my Policy, but I’m not sure where to go to start. I am avoiding any agent/personality that has misleading information (“pay yourself the interest” guys). Where can I find an agent like you?! I’m in North Texas if that helps. My dad and I are both ready asap
Technically the loan is directly from the insurance company. They use your policy balance as collateral. You can do interest only payments, interest + principle, or no payments at all. It's your call. However, I would never use the provision (except for retirement income) unless you did so inside of a strategy to pay it back and create more wealth.
So I want to make sure I got this right over 15 years we only have a 3.44% return. That is .22% a year, not very good just put it in a money market(back then) and you would crush that. I know you are getting the Life insurance as well but term is cheap. Just put your savings in a high yield bank account or money market and buy term. Is there something I am missing?
I'm in Canada and many Insurance Companies are being de-mutualized in favour of Wall Street Majority Stakeholders model. I am wondering what impact on Rate of Returns and policies flexibility in comparison with the otherwise "Mutual" recommended insurance policy type.
My IRR on one of my policies is 1.57% after 20 years. Another one at 1.61% That seems like it was structured not as efficient as the ones illustrated here 😭. Is there a way to "restructure" them or best to cancel and take the 40% loss on the first year? One I've had going on 2 years and one going on 1 year
First off....I would never cancel it after 20 years....even if it wasn't efficient. It may be worth looking at what a new policy would look like and you could 1035 exchange the money from your policy into the new, more efficient one. If you want, I can get you contact info for an agent I trust who can give you an assessment of options you have. Email Chris @life180.com if interested and I can make an intro for you.
Do you not want life insurance anymore? If you don't value it and don't feel you need it because it is a waste of money, you can always cancel the term. I personally would never do that....but it's your call.... When does the term expire? If it is a 30 year term policy, you might want to look up Life Settlement companies and see if they would be willing to make a small offer so you don't lose out on all of your premium. Also make sure there were no Return of Premium riders on the policy you would be walking away from first.
Sorry guys......average 4%-5% growth isn't enough return to outpace the COI in the older years. WL is a fixed product; super expensive; no flexibility. When you start taking cash from WL, your policy will lapse quicker than you expect. There are soooooooooooo many issues with utilizing WL for income........
@@LIFE180 Didn't suggesting anything, just addressing your multiple misrepresentations in your video. Try showing an income stream starting at age 66 to supplement their retirement -- how much income will WL produce and at what age will the policy lapse?
When can you stop funding the policy and whats the worst that can happen when you stop funding? Also if you borrow against the policy for the balance, are we starting all over or does funds refill the cash value from the death benefits?
Even when you borrow against the policy, the CV continues to grow as if it were untouched. The insurance company simply uses that balance as collateral.
Why is the first few years at $0 at CV? I've got mine at almost 75% in the first year in my CV. I don't think you guys are structuring to the best of the clients interests. I set my clients to have at least 50% CV that's available the next week to take a loan on. Your thoughts?
Great video, thank you for your effort. I plan on using this strategy in the near future. I'd like to use it more for saving towards retirement & having those funds start paying me once i'm 45 or 50. I'd also like to invest in real estate, as the income from it will be funding the policy. For me, the death benefit can be low, as i'm more interested in having enough for retirement & living off it plus borrowing $ to get more real estate. Hell, if I can create a retirement account for my parents as well, that would be grand. They will in another country.
How to go about it? It's key to work with an agent who understands all the moving parts and how to leverage those moving parts to accomplish your goals. I would call set up a time with Caleb's team to have them walk you through what it could look like for you. I know it is hard watching a RUclips video because it seems very theoretical. Once you see what it looks like for you with your financial situation and objectives you will like it. life180.andasset.com
You are asking which is better? I think that’s the wrong question. The question is, what are you looking to accomplish? How do you need to set everything up to get closer to your goals?>
@@LIFE180 So then why not utilize in your chart more realistic numbers that are in most people's price range? If I could put away $20,000 a year, I wouldn't need be on RUclips watching these types of videos.
@@neptunefischer you might be surprised. Plenty of people are really good at making money, yet still don't know what to do with it once they have it. It's an example that is scaled for the level of people I typically help in Real Estate. $5-7k per year is certainly doable.
Yes, owning policies inside of a trust is a very common thing. If you would like to have a conversation about how you can, you can set up a call with Caleb and his team by visiting this link: life180.andasset.com
So on this “investment” where it is properly written I lose money for the first 7 straight years then after that I get anywhere between 1-3%? Worst investment ever, if you are concerned about a death benefit just buy a VA with a DB rider. I love how insurance videos all start with the “idea the industry doesn’t want you to know about.” If someone bought a mutual fund that in 20 years they told me their IRR was 3% I would feel sorry for them because that is the worst investment ever. Taxes aren’t even an issue because of the tiny return.
A “liquid” savings account except that you can’t access it for 7 years without losing money, doesn’t seem liquid. Lastly, one thing not mentioned here, your “return” is subject to interest rates. So right now is the worst possible time to get into this type of product because when you implement the “loan” strategy you will be paying more interest on the withdrawal than the interest rate right now. The rates are not fixed. If you are concerned about taxes put it in a Roth. If you make to much to put it in a Roth you should be in a deferred account anyways because you are in the highest possible tax bracket.
Daniel, I can take my WL policy and have it way ahead of the game before 7 years. It just won't be done solely through the policy. I have access to that cash and will be able to be way ahead through real estate, business, hard money lending, etc... I am heading to Denver to film for the next couple days. I will make a video talking about this. Showing blending using a whole life policy with leveraging that capital outside the policy and what you can get with those returns.
How do you receive the free book you mention in this presentation? I would like to read it and implement what you are teaching. It does make sense. Please let me know.
So glad I found this in depths explaining I appreciate it however a little confused I thought you paid the policy on how much the db is for example my db is a million dollars I pay maybe 15 1600 a month by is my cv 90 percent the db? In year one or is it based on what I’m paying a month and the value in that a little confused
Glad the video helped. I am not sure I understand your question clearly. The structure of your policy will dictate the cash value and accessibility. If you are interested if your having a conversation about it, you can go to LIFE180 . Com and I am happy to have a convo with you. Set up a time to chat there.
Depending on the type of company you go with...direct vs non direct recognition. Loan would be in the 5% range with dividend in the 5.25 - 6% range depending on the company. I am a huge believer in using CVLOC's, which would give you access to your cash at 2% or so right now, all while it is earning 4-5% after expenses... that's positive arbitrage baked in.... Do you need to pay it back? Not really. Should you? Depending on what you are using it for.
Would you guys say using the cash value or the bank idea to make an investment into REITs because they have to pay back their investors through dividends would be a good way to increase your revenue and total assets value.
I am honestly not into investing in REITs personally. I would rather own the deed to the property. Great tax advantages, less risk, better returns in long run, and better cash flow. That's just me. I have a video on how to use Life Insurance to Buy Real Estate. Check it out
Question about taxes with whole life insurance. If I have a business that makes $100k in profits. I put $80k-$100k in a whole life insurance policy in one year. Would I borrow against the life insurance policy for $100k to eliminate my taxes for 2020? Or am I thinking wrong?
Hey Glenn, this is a very complex question with several answers based on several variables. If you want to have a conversation about it schedule a meeting to talk: life180.andasset.com
I'm not an accountant but you would have to pay your taxes for the income earned, that's after any deductions of course ;) and then put the balance in the WL Account which at that point it would be come tax free to use and grow... I recently started a way under performing Roth IRA that i had to pay tax on the $6000 max contribution and after that any income is considered tax free but only able to with draw at 59 1/2. Well The stock market sucks... As i bought very risky pot stocks and killed my account. I'm ready to just take my money out and any penalties can the whole Roth Idea... and start a WL policy and work on some safer bets like real estate funded from my Cash Value.
@@MichaelScarchilli-M4Marketing thanks for the comment. And yes, typically speaking, he will need to pay earned income taxes. There are ways to structure your business to reduce the taxes by having the business retain some of the earned income to reduce your tax liability first. There are also other personal tax strategies that you can utilize to reduce your tax exposure for higher income earners ($200k+).
When you borrow AGAINST the life insurance policy, you are taking a loan from the life insurance company and they are using the cash value in your life insurance policy as collateral.
Have an 84 year old Aunt,whose spent 70 years in paying premiums for different insurance policys. He is deceased, 2012,or 2013,I have power of attorney for her. 3-28-2019,Dealing with a few banks,and a couple of policy's,and more it seems is involved how do I get help with what she has ,whole life, mutual funds,IRA,402 ,so much more.
Hi Carolyn, if you want to reach out, email chris @ LIFE180 dot com and I will be happy to have a conversation. I can probably connect you with someone who can help you. I know it can be overwhelming.
I know this is a older post but for someone that maybe in a similar situation, if you are POA on a love ones, that authority goes away when that person dies. Any finances such as WL, mutual funds, or checking account can only be access by the person that is the beneficiary on these accounts. You would have to call and show documents that this person is deceased and explain that you are not sure if you are the beneficiary but tell them who you are and they will verify your information with what they have and determine if you have authority to release information to you. It is very important that if you do have POA to make sure prior to death to get all these things squared away, it would save a lot of time and maybe even money in the long run.
You can make monthly, quarterly, semi-annual, or annual payments for whatever the premium amount is. When you borrow against the policy, you pay an interest rate in the 5% range right now, but the policy is also credited a the dividend. My suggestion is to get enough money in the policy asap ($60,000+) so you qualify for a CVLOC where you can leverage your whole life policy and get a line of credit against it in the 2% range, Building in a positive 3% Arbitrage on all of the money you use.
Could this work working a full time job with the intent on using the policy as a savings account attempting to adopt the infinite banking concept? Maybe even including term insurance for the time being also with the intent of converting to perm?
I called and was basically told to pay off my debt and call back. I am looking to purchase a policy like these that you described-are you not helping to get these policies s set up? I called my local guardian rep and she has not idea what i am looking for.
Hey Natasha, if you set up a call using life180.andasset.com (that link), someone on Caleb's team will help walk you through the process. They help set up policies, but they are also very process driven and want to make sure your finances are structured properly before you begin.
There is always a spread in the death benefit and the cash value. Let's say you start with a DB of $500,000 and zero cash value (day 1). If you then have cash value of $100,000 you should have roughly a DB of $600,000. You see, you are only paying for the $500,000 in life insurance, so you get that $500,000 of life insurance, plus your $100,000 of cash value which equals the $600,000. Make sense? There are instances it is a bit different from this example, but principally, this is the way it is. The argument that the life insurance keeps your cash is just ridiculous.
@@LIFE180 maybe I am not understanding this correctly. But this doesn’t make sense. Soo after 15 years, say I have 200k cash value but DB is 500k. My family gets the DB. You saying that the 300k spread is the added bonus equaling 500k? Your family doesn’t receive the 500k and the 200k cash value as well? If they do not, the cash value goes to the insurance company?
@@derrickchandler6588 I am saying if you properly set it up, you will have a 500k death benefit to start. As the cash value increases, so will the death benefit. Unfortunately, there isn’t a one size fits all answer here. How you described it is certainly a possibility. However, I would never set it up like that if I were you....
God bless y’all brothers.. My son and I are free from here on out.. will be contacting CPA and better wealth solutions this week. I have a very lucrative trucking company
I'm even more convinced. Why would anyone want to put money in a 401K, SEP or Roth where you can't touch it until your 59.5 and you have to play by the governments rules. People don't even know that IRA's are individual retirement arrangement as defined by the IRS. I'm not comfortable with "arrangements" folks
Just out of curiosity, I was wondering if there was a point in which over funding the contract after it passes the 7-pay test could result it in becoming a modified endowment contract
Depending on how you fund the policy and what blend you use, it can become a MEC after year 7 if you overfund it too much. That said, a good agent shouldn't have a hard time figuring out how to make that NOT happen.
Investment Grade Insurance Contracts are just another way to market cash value life insurance. They cover all of the benefits for cash value life insurance
In the slides you showed buying a car with a savings account earning 2% a year. Then you showed using a whole policy but you didn’t change the rate on the whole life. It’s my understanding one should be able to get a minimum return of 4% plus possible dividends. If this is correct wouldn’t the slide showing 1,167,752 be substantially more with a 4% minimum return?
I just filmed the update for the changes in the whole life market in 2023. I just took this conversation to the next level in this video, enjoy:
ruclips.net/video/kFIboJEbIYM/видео.html
Every insurance salesman sells the client a properly structured policy. As soon as the client talks with another insurance salesman, a few years down the line, s/he is told that the policy is not properly structured, but all is not lost, he has a properly structured policy to sell you.
I just did an *UPDATED VERSION OF THIS VIDEO* for the new 7702 regs on How to Structure a Whole life Policy in 2022: ruclips.net/video/EBGEkfDO1rw/видео.html
What makes this guy more interesting than any other videos I’ve ever watched in all walks of life he actually takes the time to reply to each and everyone of you no matter how silly one of your questions was he still answered. That people should deserve some respect and for the fact that he is not trying to gain anything from any of this because he has encouraged all of us not to just pick him find her own. Which in my view makes me want to trust him more. I am seriously thinking of emailing you Directly to see whether you can help me or whether I have to pick someone from the UK many thanks see you guys
Roger Harris thanks for the kind words. Feel free to reach out any time. I am happy to do a zoom meeting. I don’t personally have any contacts in the UK, but we can certainly talk through some stuff that might be helpful for you. You can set up a time with me at LIFE180.com if you want.
Have a question can i email you?
Good video. I've been getting training on the ibc concept for my own usage and for my clients. This is the foundation to building generational wealth no doubt
What are some ways to create cash flow outside of wall street? Comment below!
Learn How to use Whole Life Insurance As A Cash Flow Investment: ruclips.net/video/HDORbHQqOLA/видео.html
Let's discuss your finances or life insurance business - click on the scheduling link in the description.
If you would like to set up a call to see how to properly structure a whole life insurance for you, use this link to set up a call: calendly.com/LIFE180/ClarityCall
LIFE180 thanks I’ll get in touch.
Also, if you are thinking of buying term and investing the difference, you need to watch this video before you make your decision: ruclips.net/video/4B3GCmBL7DU/видео.html
@J C there are no fees to have a conversation with Caleb’s team using that link. Depending on your needs, they will determine which program you belong in. If you just need an optimized policy, there are no fees. They will get you set up. They will get a commission from the insurance company. That’s how it works with life insurance. However, it’s key to know that they take about a 90% commission pay cut in order to design properly to maximize your cash accumulation. It is worth a call with them, trust me
Wow wow wow ! U blew my mind.
I get tired of all this information but no one ever show you how to get this started to begin with
Another great quote from Don Blanton: life insurance is the only asset that will ensure that your plan will happen no matter what else happens, even if you aren't there to see it happen.
Love Don Buddy!
It’s too much cash every year. You are better of buying assets
I've loved the idea of whole life insurance and it's rider polices for the longest time, but had always been suspicious of HOW it's money borrowing worked. Never got that clarity until now. I'm always for borrowing money and let my saved money and assests grow. With this video breaking it down, especially with the 3 scenarios of car buying, I've gained tremendous confidence in starting a whole life policy now. Thank you!
Let me know if you need any help setting up a policy. Feel free to reach out if you have any more questions. Chris@life180.com
Awesome video guys, thank you for putting this together. Lol first off, Chris, when you mentioned the country being in debt $21 Trillion, and 4 years later we're now at $32 Trillion, I just thought how out of control this system is. Regarding the 4% growth, has that gone up now that interest rates have gone up and is that 4% net after all company expenses? Also, what is the average commission percentage on a whole life policy with paid up additions?
Is this a dividend-paying WL policy from a mutual insurance company? If so, I don't see where you are illustrating dividend-funded PUA's. I know that dividends aren't guaranteed, but there are plenty of mutual insurance companies out there who have paid a dividend every year for a century or more.
I seriously doubt that this guy is a Nelson Nash Institute certified practitioner. It looks more like they are front loading a major death benefit since it's taking 3 years to get any cash value. I would avoid them and go find someone who is certified with NNI. Good luck : )
@@kevinburt9621 Agreed. Thanks for the reply.
You clearly didn't watch the video. The point is that the first policies they are going through that don't earn cash value very quickly are not properly designed policies.
@@drewangell1457 Thanks for your reply three years later. Now, I may have missed the part where they said, "this is an example of how NOT to....", but the structure of my question, "I don't see where you are illustrating..." is an obvious indicator that I DID watch the video. Thanks again.
Buy Term and invest the difference . Do u have a savings plan with your car and/or medical insurance. Then why would you have a savings plan with your life insurance company? Guess who keeps and control your savings, think about it
That's an apples and oranges comment. Life insurance companies are the best FINANCIAL institutions on the planet at managing risk. Better than the bank that used fractional reserve banking and is leveraging your money for their gain. When you have money in a whole life policy, YOU control that money and have access and flexibility. If you say anything to the contrary, it's apparent you don't know how it works and you just listen to Dave Ramsey and are parroting his bad information. Just look at the math...tell me I am wrong then...give me actual facts that prove me wrong. You can't. Give it a shot though :-)
Watching this as life insurance agent and this is useful (:
Can u do illustration on a $250-300 a month. $20k a year is too much for some of us lol
Will do
What’s some good life insurance policies that can be setup for this type of investing?
Hi Tyler, Can I ask what you mean by this? I would be more then happy to answer.
Well, Buy Term and Invest the Difference will always beat Permanent Life Insurance
Categorically false statement. I could show you how to use WL as an asset in a way that would CRUSH your investing strategies...We are going to be creating a ton of content on all this, so keep on the lookout.
@@LIFE180 how about you show me your WL.
I wish I had learn this 30 years ago. I will teach this to my grand children.
Does the whole life insurance policy guarantee returns the same way that a savings account does? What if there is a natural disaster and a large portion of the insured population dies and the company has to pay out a death benefit, does the insurance policy still pay out/exist ? Is the 5% interest to borrow money against your built in cash value variable or set in stone ? I think this info is important to really make an in depth comparison.
Thanks
While life insurance policies are not FDIC insured, most states do have certain guarantees that back the guarantees of the insuring company. Furthermore, if we truly have a pandemic where a high percentage of the population is wiped out, honestly, I think we have a lot more to worry about than your policy. To take it a step further, I would say that the FDIC is woefully underinsured and if there is another major financial crisis, they are leveraged WAY TOO MUCH. The FDIC won’t be enough. That will be part of the discussion during the next financial crisis...and that is FAR more likely than a large part of the population passing away.
@@LIFE180 now that that pandemic is here, what are your thoughts now?
@@loriannevogt9488 what are my thoughts about what, exactly? The pandemic and the economy?
@@loriannevogt9488 I dont think there is a risk that a major portion of the population will die.... and I would say right now whole life insurance Is a more important asset than ever for safe money because of money printing and inflation more than anything else....
When your 49 about to turn 50 years old what is the best way to go with this concept if not an investor and the least amount of money to get started?
In Canada, dividends are vested, you cannot lose the money it makes.
Hey, im in canada as well, and im wondering what company i can go with that is a dividend-paying Whole Life policy from a mutual insurance company. Do you know of any trusted ones?
@@Depressedbutthole123 are you in Ontario?
i can think of 2 regular market, and 2 high risk
How do you think the corna virus and the lockdowns are going to effect the insurance industry in the future?
Is it going to be better, worse or the same? What are your thoughts/predictions on this?
And which type of insurance should i study...right now im studying life and health, should i add anything?
I would say that the pandemic is going to create stresses across all sectors of the financial industry. What's more important to me is how it will affect people working, saving, and trying to thrive. I think my message is more relevant now than ever. If you haven't watched the LIFE180 Pyramid talk, watch it. It speaks to why having a properly structured whole life policy is so important....especially in these times.
Assume a $500,000 whole life insurance policy. As the cash value grows, the risk ($500,000) to the insurance company decreases. As the risk decreases, I assume the mortality expenses, to pay for the $500,000, are reduced as well. Correct?
Example: If the total mortality expenses, in Year 1, are $1,500 with $0 cash value, then I assume that as cash value grows, then the mortality expense will be reduced, since the insurance company risk is reduced, correct?
Amazing vid! Thank you
I wish you showed an example with putting in 6000 a year
We are working on a video similar to this right now.
So subscribe, hit the bell, and stay tuned
Great video but one question: Lets say you pay your policy for 30 years. You build up your equity and DB. If you stop paying your premium, is the death benefit locked in?
once again, it depends on how it is structured. It can be locked in forever, certainly. You can do a death benefit reduction, or you can keep it increasing and keep it a level amount (say $500,000 above whatever cash value you have in the account). It simply depends on your objective.
that 4% Rate of Return growth on the whole life policy is guaranteed or assumed?
Well, there are different variables. The guarantee on a whole life policy. currently is 2% with a non-guaranteed dividend of 5.2%. While the 5.2% is not guaranteed, the companies we use have paid EVERY YEAR for 110+ consecutive years! That said, the 5.2% is also an 80 year low for the dividend....so if it gets higher as interest rates increase, the performance will actually improve from what I showed in the video.
Hope that answers your question.
Buy term invest the difference into a Roth IRA or mutual fund. Don’t buy whole life it’s just more expensive for less. Don’t make insurance a investment that’s not what it’s meant for. How can a agent sell a insurance/*investment* with no security license? You’re cost of insurance goes up each year as you get older they will eat up your cash value with fees and charges.
I'm 73 could I get one of these policies with a low death benefit. And list my trust as a beneficiary
Absolutely if you are in decent health. It’s always worth going through the process to see if you qualify. Use this link to set up a call if you want: Calendly.com/_life180/claritycall
Hope that helps!
Great video thank you for this. I was wondering is there a way to do a PUA Whole life insurance you can't get that also incorporates dividend payments?thank you
Excellent!!! Thanks gentlemen..thank you for what you do....
Are there strategies for buying whole life policies for a 70 year old man, married with 2 self supporting children and 2 grandchildren?
Absolutely. There are strategies. I would suggest you speak with Caleb's team to see if any of them make sense to you.
At the end of the day, if you align with the principal's, then it makes sense to see what a customized policy would look like for you.
You can speak with someone on Caleb's team going to life180.andasset.com
Wait, so if you borrow from the cash value it affects your internal rate of return? I thought that you are just borrowing money directly from the insurance company’s reserves and the CV grows at the compounded annual interest rate. What am I missing here>
No, you are correct. Where in the video (time stamp) was the comment that confused you. I'll listen and explain to clarify
Can this work with an IUL? Please explain how it would work if I took out a loan for $10k and want to pay it back with the same interest that a bank would charge of say 8%.
But if I get a regular car loan, I can keep the 50k in my account and still have access to use it.
If you take a loan against your policy for the car, you no longer have access to it in the policy because you just used it. The power is the fact that you took the loan for $50k to get your car, but the $50k in your life insurance contract, while no longer liquid, is still growing at its full value with uninterrupted compounding. It's quite powerful.
Correct. You can take a regular car loan and keep the money in your policy - if the car loan is 0% or 2% financing or something of that nature. However, the benefit of having the policy loan is the fact that it won't hurt credit and has more flexible payment terms if you run a business and have big cash flow fluctuations.
Awesome video on who to utilize whole life insurance. My question is that when you put in so much PUA, your cash value is much greater. When you get older or rather when you die, the insurance company get the cash value and your beneficiary gets the net death benefit. Is there a way around that? I've read online that you can call up the insurance company and convert the cash value to boost your death benefit is that true? Or you need a specific rider stating you can do this? Also, if I'm super lazy or I didn't get the chance to look for investments, should I still get whole life insurance with suped up PUA? I'm 36 and about to start my 6th year of whole life, and have a good balance of stocks and cash at the moment.
There should always be a spread between the DB and CV. If there isn't, there is a problem. There are many ways to address this. It's a bit more involved than a RUclips response. If you would like to set up a conversation, you can do so here
Https://life180.andasset.com
So true enough the IRR sucks in their initial example sucks. Nice to have some honesty at the outset. Even still you will never find an “ Inflation adjusted” return column in any insurance illustration. If you think the government calculations of sub 2% for inflation are correct now or will be in the future get ready to lose purchasing power. Also explain to me how these insurance titans will remotely match past returns with the US 30 year treasury below 3%. Lower -even negative rates are coming in the US. They are baked in the cake demographically- just like Europe and Japan. The easy answer is - the returns of the past won’t be possible .
Thanks very much for this information! Wow
Please explain how exactly how I borrow the money? Is it borrowing against the cash value or the death benefit? Additionally what is the face value? Is it the "death benefit "? Thanks
This comment is really helpful! More videos to come!
You are borrowing from the insurance company's general fund. During life you use the cash value as collateral. If you graduate with outstanding loan then the death benefit is reduced by loan amount plus interest occured.
How the HELL would I come up with 20 K a year Just to put into a policy? Family of 6 40K a year living in frickon Virginia.
Nathan if you had a $2700 a year policy and put $27k of you $40k into PUAs policy. You could take a policy loan equal to cash value. Make a deposit into PUA and take a policy loan up to 90%. Treat it like a saving account.
Great Video would Love for you to help set up a policy for me and my kids two boys 5,and 9 and girl 7 and I’m 51 in Texas
Use this link to set up a call and I'm happy to help!
Calendly.com/_life180/claritycall
What about the interest that the loan is going to charge? That is going to accumulate even more than the cash value if we don’t repay it. Sure the narrative is you can get a loan against your policy but no one talks about interest that comes with it which makes the whole life policy not lucrative. So technically we never can access money tax-free, there is always some kind of “extra” money we end up paying. These revenue agency knows all hooks and crooks.
This is actually not an accurate statement. Sure the interest you pay taking a loan against your policy has a cost associated with it. But the key is you're taking a loan against it (as collateral), not from it. Meaning while you're paying interest on the loan, all the cash value in your policy is still earning money. If you get a 5% loan and are earning 5% on your money, you are still actually ahead. In addition, a second level strategy is using the CV in your policy as collateral for other lenders who can give better rates. In which case, you can take advantage of those lower rates. Just know there will be more structure and more restrictions with outside lenders. That'll be fine for some and not for others. It really just depends what you want to use it for.
LIFE180: Leading Into Financial Excellence interesting, can we have multiple whole life Insurance as well? Are there pros to it?
How does Caleb make money if this policy pays 70% less than a normal whole life without the paid-up rider? Thank you,
What happens with this plan if in year 15 you can no longer contribute? Would like to see income lapse scenarios vs. other approaches (e.g. term and invest).
A Whole Life Policy can be paid up in as little as 10 years.
@@jaaziel9 actually we do 7 years. :)
@@SapphireSweed What the minimum Premium and Monthly Payments I can get for a 7 year paid-up policy?
@@jaaziel9 I think it's somewhere around 200/month, but we typically deal with businesses and others putting in 24K-100K+ per year.
@@SapphireSweed Thanks. Out of my price range. I have a old one $40,000 policy with a $15,000 cash value that's paid up. I think I will stick with it. Oh, btw, what the policy amount for the $200 mo. plan you just quoted.
3 years late but what a great video
Better late than never. See the updated video pinned in the comment section at the top
@@LIFE180 if you don’t mind me asking, what illustration tool is this?
@@aaronromero3153 Truth Concepts
Chris who is your favorite WL company for not only infinite banking but for accumulation and who are #2, #3?
Ohio National for IBC.
Mass Mutual is great
One America is great for the right person
However, I would defer you to Caleb on that one normally as I have not been licensed for several years... I simply love guiding entrepreneurs to this strategy. I have Ohio National personally.
Forester, transamerica, john hancock , connie 4088541883
connie b. Dellobuono sorry, but for accumulation, none of those make the list. Especially if you are talking about structuring for infinite banking. And seriously, you are gonna spam your phone number? Smh.... Do you really think anyone is going to call when you spam dump your phone number in a RUclips comment? Come on now... That’s why life agents get such a bad rap...
Hey Chris great video. What is the program you and Caleb use for this presentation?
I believe we simply did a GoToMeeting and used a screen recorder. It's pretty simple. You could also use Zoom.us
@@LIFE180 My bad i didnt clarify enough. I meant the financial program on which you demonstrate different permanent life insurance options.
@@themisp3812 I believe it was Truth Concepts?
LIFE180: Leading Into Financial Excellence Thank you!
Great video, thank you for all the information
Glad it was helpful!
Let say you get a car loan for 40000 at 2.9% . What is the break even percentage for borrowing from your whole life at 5% policy , considering policy growth? If you could give an example
If you can get a true 2.9% loan I would take that instead of borrowing against your policy! Cheaper money!
How do we apply this insurance policy concept towards a "Family" own banking concept? Is it a group insurance instead of personal? How would it work?
There are many ways to accomplish it. Policies are owned on individuals. Often for legacy and long term banking strategies they are owned inside of different types of trusts.
But a simpler version is getting each family member a policy that is properly structured and using the banking strategy that way. Also, older, less healthy individuals can often times own the policy and insure a younger person in the family (typically one of their kids).
Does that help?
@@LIFE180 Somewhat, perhaps a video to explain this in greater details would be interesting to viewers. We keep seeing videos that talk about this concept and how the Rotschilds leveraged this concept for family legacy. Was wondering how we could do the same and leverage a single pool with multiple family contributing members to accelerate growth and borrowing capital for Real Estate investment. Thanks for this great informative video. No other folks have explained the different kind of policy structuring instruments e.g. PUA Rider.
@@alaingoyette7103 thanks for the feedback. I am taking another trip to Denver to film with Caleb again at the end of August. I'll put this on the docket.
Hey Chris great information.
Please advise, what life insurance company is paying 5% on a whole life policy? This is very misleading, if this is hypothetical.
Many whole life companies offer a 5% dividend. Also, long term over the past 30 years, many policies have netted over 5% after all costs. Are they going to net 5% after expenses right now? No. But it's about thinking long term. They will over the long run if rates go back up. We have been in a very artificially low interest rate environment.
check out the updated video to this with actual illustrations pinned at the top of the comment section on this video.
I have seen it explained as a 10/90 split elsewhere, Kaleb you explained in a totally different way. How does adding or not adding PUA riders affect the DB ?? A little confused here....can you clarify ?
I’ve read several books, done hours of research, and I am ready to start my Policy, but I’m not sure where to go to start. I am avoiding any agent/personality that has misleading information (“pay yourself the interest” guys). Where can I find an agent like you?! I’m in North Texas if that helps. My dad and I are both ready asap
Email Chris@life180.com and I'll give you some guidance
For a clearer chart , can you just show full screen and use audio only.
Am I required to pay back what I borrow and is interest included?
Technically the loan is directly from the insurance company. They use your policy balance as collateral. You can do interest only payments, interest + principle, or no payments at all. It's your call. However, I would never use the provision (except for retirement income) unless you did so inside of a strategy to pay it back and create more wealth.
So I want to make sure I got this right over 15 years we only have a 3.44% return. That is .22% a year, not very good just put it in a money market(back then) and you would crush that. I know you are getting the Life insurance as well but term is cheap. Just put your savings in a high yield bank account or money market and buy term. Is there something I am missing?
Plus .22% you are losing to inflation as well.
I'm in Canada and many Insurance Companies are being de-mutualized in favour of Wall Street Majority Stakeholders model. I am wondering what impact on Rate of Returns and policies flexibility in comparison with the otherwise "Mutual" recommended insurance policy type.
That is why it is extremely important to only purchase a policy through a top rated company with plenty of reserves.
My IRR on one of my policies is 1.57% after 20 years. Another one at 1.61% That seems like it was structured not as efficient as the ones illustrated here 😭.
Is there a way to "restructure" them or best to cancel and take the 40% loss on the first year? One I've had going on 2 years and one going on 1 year
First off....I would never cancel it after 20 years....even if it wasn't efficient. It may be worth looking at what a new policy would look like and you could 1035 exchange the money from your policy into the new, more efficient one.
If you want, I can get you contact info for an agent I trust who can give you an assessment of options you have.
Email Chris @life180.com if interested and I can make an intro for you.
How about a 54 year old me and my husband been paying a term for 15 years 268 dollarss for bath of us ….. i dont want to pay this term anymore.
Do you not want life insurance anymore? If you don't value it and don't feel you need it because it is a waste of money, you can always cancel the term. I personally would never do that....but it's your call....
When does the term expire? If it is a 30 year term policy, you might want to look up Life Settlement companies and see if they would be willing to make a small offer so you don't lose out on all of your premium.
Also make sure there were no Return of Premium riders on the policy you would be walking away from first.
Sorry guys......average 4%-5% growth isn't enough return to outpace the COI in the older years. WL is a fixed product; super expensive; no flexibility. When you start taking cash from WL, your policy will lapse quicker than you expect. There are soooooooooooo many issues with utilizing WL for income........
That is such an off based and uneducated comment I don't want to take the time to respond. Your suggestion is of course an IUL?
@@LIFE180 Didn't suggesting anything, just addressing your multiple misrepresentations in your video. Try showing an income stream starting at age 66 to supplement their retirement -- how much income will WL produce and at what age will the policy lapse?
When can you stop funding the policy and whats the worst that can happen when you stop funding? Also if you borrow against the policy for the balance, are we starting all over or does funds refill the cash value from the death benefits?
Even when you borrow against the policy, the CV continues to grow as if it were untouched. The insurance company simply uses that balance as collateral.
@@LIFE180 great. I appreciate this, thank you.
Awesome. Thank you both.
Why is the first few years at $0 at CV? I've got mine at almost 75% in the first year in my CV. I don't think you guys are structuring to the best of the clients interests. I set my clients to have at least 50% CV that's available the next week to take a loan on. Your thoughts?
You must not have watched the entire video 😉 there are 3 examples in this video showing the right and wrong way. 0% cv year 1 is not good
@@LIFE180 hehehe got me. Turned it off soon after i saw the first illustration. Gonna watch completely
Can an Australian or a New Zealander citizen buy a whole life policy in the USA?
If you have insurable interest in the USA - IE: property or business interests.
@@LIFE180 or a child who happens to be a U.S. Citizen possibly?
Great video, thank you for your effort. I plan on using this strategy in the near future. I'd like to use it more for saving towards retirement & having those funds start paying me once i'm 45 or 50. I'd also like to invest in real estate, as the income from it will be funding the policy. For me, the death benefit can be low, as i'm more interested in having enough for retirement & living off it plus borrowing $ to get more real estate. Hell, if I can create a retirement account for my parents as well, that would be grand. They will in another country.
That's amazing! If you want to talk to someone on my team here a link you can use! life180.andasset.com
Thanks! Reach out to Caleb's team if you ever need anything. They are here for you. It sounds like your head is in the right place!
So have to go about getting the right policy ?
How to go about it? It's key to work with an agent who understands all the moving parts and how to leverage those moving parts to accomplish your goals.
I would call set up a time with Caleb's team to have them walk you through what it could look like for you. I know it is hard watching a RUclips video because it seems very theoretical. Once you see what it looks like for you with your financial situation and objectives you will like it.
life180.andasset.com
Are you not a proponent of using PUA's?
How can I set it up for grandchild?
Set up a call using this link and we can help give you some guidance
Calendly.com/_life180/claritycall
So once again third page watch Dave Ramsey which is better the whole or the term
You are asking which is better? I think that’s the wrong question. The question is, what are you looking to accomplish? How do you need to set everything up to get closer to your goals?>
I couldn’t put away 20k per year, because that’s 1/3-1/4 of my income. I’m looking more like 5-7k per year
We used $20k as the example. It works with any number, really. $5k per year is plenty to get started.
@@LIFE180 Thanks for the reply. Can you explain how the IRR of CV is calculated?
@@LIFE180 So then why not utilize in your chart more realistic numbers that are in most people's price range? If I could put away $20,000 a year, I wouldn't need be on RUclips watching these types of videos.
@@neptunefischer you might be surprised. Plenty of people are really good at making money, yet still don't know what to do with it once they have it. It's an example that is scaled for the level of people I typically help in Real Estate. $5-7k per year is certainly doable.
20k is my entire year income. Is there anything for someone like me?
This is awesome! Where can I get the spreadsheet?
We used a 3rd party tool to build it. I have several spreadsheets that might help. Chris@LIFE180.com
so you could set this up to be funded by a trust and use it to take out dividends tax free?
Yes, owning policies inside of a trust is a very common thing. If you would like to have a conversation about how you can, you can set up a call with Caleb and his team by visiting this link: life180.andasset.com
So on this “investment” where it is properly written I lose money for the first 7 straight years then after that I get anywhere between 1-3%? Worst investment ever, if you are concerned about a death benefit just buy a VA with a DB rider. I love how insurance videos all start with the “idea the industry doesn’t want you to know about.” If someone bought a mutual fund that in 20 years they told me their IRR was 3% I would feel sorry for them because that is the worst investment ever.
Taxes aren’t even an issue because of the tiny return.
A “liquid” savings account except that you can’t access it for 7 years without losing money, doesn’t seem liquid.
Lastly, one thing not mentioned here, your “return” is subject to interest rates. So right now is the worst possible time to get into this type of product because when you implement the “loan” strategy you will be paying more interest on the withdrawal than the interest rate right now. The rates are not fixed.
If you are concerned about taxes put it in a Roth. If you make to much to put it in a Roth you should be in a deferred account anyways because you are in the highest possible tax bracket.
I love the phrase “without a down year” what about the first 7 years? Aren’t those down years?
Daniel, I can take my WL policy and have it way ahead of the game before 7 years. It just won't be done solely through the policy. I have access to that cash and will be able to be way ahead through real estate, business, hard money lending, etc... I am heading to Denver to film for the next couple days. I will make a video talking about this. Showing blending using a whole life policy with leveraging that capital outside the policy and what you can get with those returns.
How do you receive the free book you mention in this presentation? I would like to read it and implement what you are teaching. It does make sense. Please let me know.
Go to life180.andasset.com and you can get it there free
So glad I found this in depths explaining I appreciate it however a little confused I thought you paid the policy on how much the db is for example my db is a million dollars I pay maybe 15 1600 a month by is my cv 90 percent the db? In year one or is it based on what I’m paying a month and the value in that a little confused
Because if I wanna do a loan in year one with a million dollar db policy should I get 90 percent of that?
Glad the video helped. I am not sure I understand your question clearly. The structure of your policy will dictate the cash value and accessibility. If you are interested if your having a conversation about it, you can go to LIFE180 . Com and I am happy to have a convo with you. Set up a time to chat there.
don't you have to pay back the loans? what is the intrest rate on the loan vs your money growth
Depending on the type of company you go with...direct vs non direct recognition. Loan would be in the 5% range with dividend in the 5.25 - 6% range depending on the company. I am a huge believer in using CVLOC's, which would give you access to your cash at 2% or so right now, all while it is earning 4-5% after expenses... that's positive arbitrage baked in....
Do you need to pay it back? Not really. Should you? Depending on what you are using it for.
Would you guys say using the cash value or the bank idea to make an investment into REITs because they have to pay back their investors through dividends would be a good way to increase your revenue and total assets value.
I am honestly not into investing in REITs personally. I would rather own the deed to the property. Great tax advantages, less risk, better returns in long run, and better cash flow. That's just me. I have a video on how to use Life Insurance to Buy Real Estate. Check it out
Question about taxes with whole life insurance. If I have a business that makes $100k in profits. I put $80k-$100k in a whole life insurance policy in one year. Would I borrow against the life insurance policy for $100k to eliminate my taxes for 2020? Or am I thinking wrong?
Hey Glenn, this is a very complex question with several answers based on several variables. If you want to have a conversation about it schedule a meeting to talk: life180.andasset.com
I'm not an accountant but you would have to pay your taxes for the income earned, that's after any deductions of course ;) and then put the balance in the WL Account which at that point it would be come tax free to use and grow... I recently started a way under performing Roth IRA that i had to pay tax on the $6000 max contribution and after that any income is considered tax free but only able to with draw at 59 1/2. Well The stock market sucks... As i bought very risky pot stocks and killed my account. I'm ready to just take my money out and any penalties can the whole Roth Idea... and start a WL policy and work on some safer bets like real estate funded from my Cash Value.
@@MichaelScarchilli-M4Marketing thanks for the comment. And yes, typically speaking, he will need to pay earned income taxes. There are ways to structure your business to reduce the taxes by having the business retain some of the earned income to reduce your tax liability first.
There are also other personal tax strategies that you can utilize to reduce your tax exposure for higher income earners ($200k+).
If we borrow against our cash value in our policy are we borrowing from the life insurance company or from a bank?
When you borrow AGAINST the life insurance policy, you are taking a loan from the life insurance company and they are using the cash value in your life insurance policy as collateral.
Have an 84 year old Aunt,whose spent 70 years in paying premiums for different insurance policys. He is deceased, 2012,or 2013,I have power of attorney for her. 3-28-2019,Dealing with a few banks,and a couple of policy's,and more it seems is involved how do I get help with what she has ,whole life, mutual funds,IRA,402 ,so much more.
Hi Carolyn, if you want to reach out, email chris @ LIFE180 dot com and I will be happy to have a conversation. I can probably connect you with someone who can help you. I know it can be overwhelming.
I know this is a older post but for someone that maybe in a similar situation, if you are POA on a love ones, that authority goes away when that person dies. Any finances such as WL, mutual funds, or checking account can only be access by the person that is the beneficiary on these accounts. You would have to call and show documents that this person is deceased and explain that you are not sure if you are the beneficiary but tell them who you are and they will verify your information with what they have and determine if you have authority to release information to you. It is very important that if you do have POA to make sure prior to death to get all these things squared away, it would save a lot of time and maybe even money in the long run.
How many years does it take before you can start borrowing from the insurance?
Depending, but if you do a dump in, you can borrow against it within 30-60 days
Do we have to put the whole 20k in at one time, or just throughout the year? When we borrow from it what are we paying back?
You can make monthly, quarterly, semi-annual, or annual payments for whatever the premium amount is.
When you borrow against the policy, you pay an interest rate in the 5% range right now, but the policy is also credited a the dividend.
My suggestion is to get enough money in the policy asap ($60,000+) so you qualify for a CVLOC where you can leverage your whole life policy and get a line of credit against it in the 2% range, Building in a positive 3% Arbitrage on all of the money you use.
Could this work working a full time job with the intent on using the policy as a savings account attempting to adopt the infinite banking concept? Maybe even including term insurance for the time being also with the intent of converting to perm?
For sure. Use convertible term for any coverage above and beyond you can afford to put into a banking policy
Set up a clarity call if you want to learn more
Calendly.com/_life180/claritycall
great video amazing this
Love your hearts! Thank you!
I called and was basically told to pay off my debt and call back. I am looking to purchase a policy like these that you described-are you not helping to get these policies s set up? I called my local guardian rep and she has not idea what i am looking for.
Hey Natasha, if you set up a call using life180.andasset.com (that link), someone on Caleb's team will help walk you through the process. They help set up policies, but they are also very process driven and want to make sure your finances are structured properly before you begin.
Let’s say the insured dies year 15, the beneficiary gets the death benefit, but what happens to the cash value?
There is always a spread in the death benefit and the cash value. Let's say you start with a DB of $500,000 and zero cash value (day 1). If you then have cash value of $100,000 you should have roughly a DB of $600,000. You see, you are only paying for the $500,000 in life insurance, so you get that $500,000 of life insurance, plus your $100,000 of cash value which equals the $600,000. Make sense?
There are instances it is a bit different from this example, but principally, this is the way it is. The argument that the life insurance keeps your cash is just ridiculous.
@@LIFE180 maybe I am not understanding this correctly. But this doesn’t make sense. Soo after 15 years, say I have 200k cash value but DB is 500k. My family gets the DB. You saying that the 300k spread is the added bonus equaling 500k? Your family doesn’t receive the 500k and the 200k cash value as well? If they do not, the cash value goes to the insurance company?
@@derrickchandler6588 I am saying if you properly set it up, you will have a 500k death benefit to start. As the cash value increases, so will the death benefit. Unfortunately, there isn’t a one size fits all answer here. How you described it is certainly a possibility. However, I would never set it up like that if I were you....
God bless y’all brothers.. My son and I are free from here on out.. will be contacting CPA and better wealth solutions this week. I have a very lucrative trucking company
Email Chris@life180.com if you have any questions about anything or need any help.
Love it
hope it helped!
Are their policies available to borrow against the very next day?
Nope. Takes 15-30 days once the policy is funded. After that, you can access money easily.
love this!!!!
Thank you. Thank you. Thank you. This helped so much.
Glad this was helpful!
Glad it helped!
I'm even more convinced. Why would anyone want to put money in a 401K, SEP or Roth where you can't touch it until your 59.5 and you have to play by the governments rules. People don't even know that IRA's are individual retirement arrangement as defined by the IRS. I'm not comfortable with "arrangements" folks
Yes sir! I am actually in the process of creating the 2023 update for this video, so stay tuned. It's going to be much more in depth!
46:26 Kaleb, it is not Math Heavy, this is plain Arithmetic!!
Just out of curiosity, I was wondering if there was a point in which over funding the contract after it passes the 7-pay test could result it in becoming a modified endowment contract
This is why I, as an agent, can create a policy so it does not become a MEC. And we mostly do 7 year pays, and then your done paying for life.
Depending on how you fund the policy and what blend you use, it can become a MEC after year 7 if you overfund it too much. That said, a good agent shouldn't have a hard time figuring out how to make that NOT happen.
Can you share policy softwares?
Truth concepts
Have you looked into an Investment Grade Insurance Contract?
Investment Grade Insurance Contracts are just another way to market cash value life insurance. They cover all of the benefits for cash value life insurance
The average American doesn’t have this kind of money. This is great for the salesman.
In the slides you showed buying a car with a savings account earning 2% a year. Then you showed using a whole policy but you didn’t change the rate on the whole life. It’s my understanding one should be able to get a minimum return of 4% plus possible dividends. If this is correct wouldn’t the slide showing 1,167,752 be substantially more with a 4% minimum return?