I disagree. I’ve worked really hard at building an emergency fund, a years worth of expenses so no matter what happens I’ll be ok. It’s in a high interest savings so it grows every year. I also have investments in accounts that have no withdrawal penalty. That grows as well. I have a will so I’m not worried about that. Every time I punch the numbers in for life and health insurance, the numbers don’t add up. There is always a percentage I don’t get back. Instead of preparing for the worst instilling fear, I find it way more empowering the be able to provide my own safety net. I created my own peace of mind without needing somebody else’s policy or paying anybody else.
That's great, that you have many assets you can utilize. Something to consider though, each of the assets you mentioned is taxable. With your high interest savings account, you're paying income tax on that interest which is lowering your high interest rate return. With your investments, you're going to pay taxes as well. If you are already well funded in your emergency fund and your investments, a whole life policy might be a good tool for your future to grow your wealth. What if you have an opportunity or a situation where you don't want to dip into your savings or your investments but, you want to have access to capitol without accruing substantial debt of pay a penalty? Given our present economic situation, you may be hesitant to take your money out of your accounts that are generating significant interest. You may also be very hesitant to take a traditional high interest loan or borrow from a retirement plan. However if you have a significant unexpected expense or an opportunity to invest in a high ROI opportunity, a life insurance policy can provide you access to affordable capitol without having to deplete your nest egg. I agree, many of these videos on Whole Life leave you feeling confused. Furthermore, when you hear people say it's a terrible investment, it makes you wonder. If you understand how you can actually utilize a policy though, it starts to make some sense to have a policy as a tool in your portfolio.
I'm actually learning these things right now! These points are correct but only if you borrow against the policy. If you withdrawl, you have to pay capital gains. If you borrow against, the money is not taken out until the insured passes away. As well, if your money is not invested in pools where you are gaining good to great growth in the policy, you won't be able to experience the things that were talked about (lifestyle, paying off debts, ect.) Choose your investments wisely and aim for generational wealth through financial education! Love what you two discussed!
How does this information apply to the current lack of value to the American dollar and the banking system? I am not being smug. It is a sincere question. Please speak to this.
Most of the cash value policies pay dividends. As the assets they own on our behalf increase in value so will the dividends they pay out. This will continue increasing cash value and death benefit depending on how it’s structured.
Does cash value have to accumulate to get a loan..or do we get to borrow the policy value? Seem like it take years to accumulate to borrow from the cash value if that's the case.
You only get to use the cash value that you put in you don’t get to borrow from the face value whatsoever, so yes, it could take years for you to accumulate enough money to be able to pull out for a loan
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I disagree. I’ve worked really hard at building an emergency fund, a years worth of expenses so no matter what happens I’ll be ok. It’s in a high interest savings so it grows every year. I also have investments in accounts that have no withdrawal penalty. That grows as well. I have a will so I’m not worried about that. Every time I punch the numbers in for life and health insurance, the numbers don’t add up. There is always a percentage I don’t get back. Instead of preparing for the worst instilling fear, I find it way more empowering the be able to provide my own safety net. I created my own peace of mind without needing somebody else’s policy or paying anybody else.
Teach us your ways
That's great, that you have many assets you can utilize. Something to consider though, each of the assets you mentioned is taxable. With your high interest savings account, you're paying income tax on that interest which is lowering your high interest rate return. With your investments, you're going to pay taxes as well. If you are already well funded in your emergency fund and your investments, a whole life policy might be a good tool for your future to grow your wealth.
What if you have an opportunity or a situation where you don't want to dip into your savings or your investments but, you want to have access to capitol without accruing substantial debt of pay a penalty? Given our present economic situation, you may be hesitant to take your money out of your accounts that are generating significant interest. You may also be very hesitant to take a traditional high interest loan or borrow from a retirement plan. However if you have a significant unexpected expense or an opportunity to invest in a high ROI opportunity, a life insurance policy can provide you access to affordable capitol without having to deplete your nest egg.
I agree, many of these videos on Whole Life leave you feeling confused. Furthermore, when you hear people say it's a terrible investment, it makes you wonder. If you understand how you can actually utilize a policy though, it starts to make some sense to have a policy as a tool in your portfolio.
How would this work when the dollar is being devalued and there are talks about a digital currency/FedNow and CBDCs?
Loved your point about having access to cash when you need it.
I'm actually learning these things right now! These points are correct but only if you borrow against the policy. If you withdrawl, you have to pay capital gains. If you borrow against, the money is not taken out until the insured passes away.
As well, if your money is not invested in pools where you are gaining good to great growth in the policy, you won't be able to experience the things that were talked about (lifestyle, paying off debts, ect.)
Choose your investments wisely and aim for generational wealth through financial education! Love what you two discussed!
It is extremely important to know that insurance agents make much more money selling whole life insurance policies. Much more money.
How does this information apply to the current lack of value to the American dollar and the banking system? I am not being smug. It is a sincere question. Please speak to this.
Most of the cash value policies pay dividends. As the assets they own on our behalf increase in value so will the dividends they pay out. This will continue increasing cash value and death benefit depending on how it’s structured.
What about life insurance with living benefits? Is that any good?
Does cash value have to accumulate to get a loan..or do we get to borrow the policy value? Seem like it take years to accumulate to borrow from the cash value if that's the case.
You only get to use the cash value that you put in you don’t get to borrow from the face value whatsoever, so yes, it could take years for you to accumulate enough money to be able to pull out for a loan
Unless you do a single premium policy or rider.
I can't find my policy that my daughter's father gave me 10yrs ago. How can I find out if the policy is still valid??
Good luck
Is the whole life same is IUL?
No. Both have cash value, but IUL is focused on the value growing quicker
You guys spoke about absolutely nothing