What are people talking about when you hear the term “Investment Grade Life Insurance”? Answer: It can be just about any type of life insurance under the sun because the “Investment Grade” part is marketing fluff.
The Supreme court has ruled that life insurance is not an investment but rather an asset, so what you really want to know is how the underlying life insurance works and how it would fit into your portfolio.
This podcast show makes it easy to understand the value of guarantees from WHOLE life insurance in your portfolio, and why it pays to be wary of any other type of risk management scheme contrived within a UNIVERSAL life insurance contract. When you know what’s really happening, you’ll know what to do.
Resources:
Get the Tool: Internal Rate of Return (IRR) for Policy Values
Register for the: Jan 18th Workshop in Las Vegas
Should you rely only on Group Life Insurance through your employer? Or does it make sense to combine your group coverage with individual coverage? What option(s) will cost the least over time? What else should you know of when it comes to Group Life Insurance? Find out now.
Hear the pros and cons of Group Life Insurance and how it compares (or can work together) with personal Term Life Insurance and Participating Whole Life insurance to get you the best coverage.
Resources:
Get a Quote for Term or Participating Whole Life Insurance here
Stories from the Plymouth Pilgrim colony and the modern Farming community help to explore the way Socialism differs from Mutual Assistance, Mutual Organizations or acts of Charity in a community. Ask yourself, what model will best protect wealth? And discover how you can you participate in a mutual framework to protect the wealth you create.
Obviously, charity is important, while greed is destructive. The right method and attitude for creating and protecting your wealth follows the same guidelines. Do this right and you will experience a wealthier life beyond just the money you accumulate in the process.
This show also includes some fun facts on life insurance…how much life insurance was in-force in 1930 compared to 2018? Listen and find out.
Resources:
2018 Life Insurance Stats - Statista.com
Did you know, that a withdrawal from any type of Universal life insurance policy, is substantially different than a withdrawal from a Whole life insurance policy? Policy loans may also affect universal life insurance and whole life insurance products differently. On this show you’ll hear what you need to know about policy loans and withdrawals.
It doesn’t matter whether a universal product is called Indexed Universal Life (tied to a market index), Variable Universal Life (tied to various stock accounts), or plain Universal Life (usually tied to an interest rate).
Withdrawals from any type of life insurance policy can easily be taxable. Loans are usually not taxable but can become taxable if you borrow too much and cannot pay the interest. Don’t lose money. Discover what you need to know to keep more of the money you make.
You will also hear guidelines on when it makes sense to take a policy loan and when it makes sense to use other money.
Call Life Benefits for specific guidance 702-660-7000
🗞Everything you need to know, and probably more than you’ll ever need to know, about Indexed Universal Life Insurance (IUL). Universal Life Insurance has been promoted since the 1970’s. IUL insurance is even more recent, but still based on the same idea of buying term insurance and investing the difference.
If you like risk, fees, a possibility of greater gain when the market goes up (never when it goes down), an ever increasing cost of insurance, and a thick contract that obviously protects the insurance company over the policy owner…you might want IUL.
Yes, we’re biased toward good traditional Whole Life insurance, and you’ll understand why as you listen. Complexity is not your friend when it comes to IUL.
Resources:
If you already have an IUL policy contact Life Benefits for a review: 702-660-7000
How Indexed Universal Life Insurance Works: https://www.life-benefits.com/how-indexed-universal-life-insurance-works-iul/
Best known as a billionaire tycoon and a hostile corporate takeover entrepreneur, T. Boone Pickens was an amazing person with great financial sense.
But in 2008 one of his ideas crashed. Pickens had helped Oklahoma State University buy life insurance through Premium Financing. After the 2008 crash T. Boone Pickens stepped in personally to bailout OSU and they still lost the life insurance.
Today you’ll see a lot of people encouraging premium financing on the internet or in seminars. Unless you have deep pockets or a rich benefactor like T. Boone Pickens it’s much better to stick with a “comfortable and affordable” strategy for funding your life insurance assets. If Premium Financing was a wildcard for T. Boone Pickens, what makes you think it could be different for you?
Resources:
How do you maximize growth in your policies (and outside your policies) with strategies like the Infinite Banking, Bank On Yourself or The Perpetual Wealth Code™?
This can depend partly on how your policies are designed. If you have a policy that is “maxed out” under the Modified Endowment Contract rules you might not be able to maximize the policy much more. What then?
When your policy growth and guarantees are maximized it’s time to look to your money management for the optimal growth opportunities. Listen for details on the balance to make this all work for you so you can stop losing money and keep more of the money you make.
Celebrate #InternationalPodcastDay this week by sharing your Favorite Podcast Shows and entering to win a set a Beats Headphones on September 30th:
In this episode:
Life Insurance Companies are updating their products for the latest 2017 CSO Mortality tables (CSO = Commissioners Standard Ordinary). The previous major CSO tables were assembled in 2001. There are some changes that will affect new policy values because people are living longer now. Listen to hear what these changes mean for you.
Special history on the Apollo 11 astronauts! (timecode: 4min 37sec) 🚀 As we celebrate their achievement with the Moon landing 🌙 and their safe return to earth 🌎 50 years ago this week, it’s a great time to reflect on how the astronauts planned for their families just-in-case they did not make it home alive.
These 3 heroes could not qualify for Life Insurance, but they did have the brilliant values to protect their families before they left on the dangerous and historic trip to the Moon.
Catch this Special Interview with Alex. Alex contacted our office for some policy reviews after his agent told him “let policy loans pay your premiums.” This started in the 90’s. 20+ years later results are plaintive.
These were (and still are) good policies, but the funding strategy backfired. Policy loans can enable you to take great financial opportunities without giving up guaranteed growth + dividends on your money, and like any good strategy this can be taken too far.
Good rule of thumb for Policy Loans = Make sure you’re always making or saving more money than the interest when you take a policy loan.
Can you use a policy loan to pay a premium if you’re in a cash flow crunch? Of course, just don’t make this your long-term habit. DO make sure you’re always aware of the interest on any and all policy loans that you take.
Plan to review your strategy regularly - about 1x year is a good idea. Contact Life Benefits for a complimentary policy review.
Most public facing insurance companies today are organized as stock-held companies. 🏢 Many mutual carriers have reorganized as mutual holding companies.
What does this mean for you? Example: You get a whole life policy from a mutual carrier. BUT then the contract says your policy was issued by a stock company! You still participate/receive dividends + have voting rights as a mutual policy holder, so what just happened?
No cause for alarm. If you chose a mutual holding company, this is normal. Here’s how a typical mutual holding structure works and what you should know as a policy holder with a company organized in this manner.
Topic #2: What is the 7-pay test?
One of you recently asked a question about the 7-pay test. Today you get the answer + hear why some people intentionally want policies that are Modified Endowment Contracts. And yes, this does make sense sometimes.
Resource:
Here’s the link to order Winning Your Financial GAME - Book and Study Guide
Some advisors tell you to Buy Term Life Insurance and Invest the Difference, but there is a better way (no secret). 🤔
Some advisors tell you to Buy Universal Life Insurance (UL, VUL, EIUL or IUL variants), but this is really a pre-packaged form of the same strategy 🎁 - Buy Term and Invest the Difference. There’s still a better way!
We tell you to buy Whole Life Insurance with a strong PUA rider (Paid Up Additions) + maybe some convertible term insurance (separate policy)…AND you will hear WHY this is the best way to go. When all the pieces come together it just makes sense! You want to keep your options on the the table as fully and as long as possible, and you remember Warren Buffet’s first 2 rules: #1 Don’t Lose Money; #2 Don’t Forget Rule #1.
Also on this show a quick review of how long you should think of keeping the PUA rider on a Whole Life Insurance policy for the best results.
Resources:
Do You Have a Friend Selling Indexed Universal Life Insurance? - Podcast
You will hear all sorts of fluffy marketing terms when it comes to building wealth with life insurance. 🎧 Listen for tips on how to cut through to the real meaning and understand the keys to manage your money wisely.
A good litmus test that still holds true = “If it sounds too good to be true, it probably is.” Of course Truth does provide amazing results, AFTER the foundation has been laid. Good things take time to grow.
It’s not so much about the money you SAVE - its about the Money you KEEP and there is a big difference! Not all advice is applicable for all levels of financial strategy - This is one lesson that will always help you stay on track at every level of your financial journey.
Resources:
Similar to a 1031 exchange in Real Estate 🏘, a 1035 exchange lets you avoid tax and transfer your “cost basis” when exchanging life insurance policies.
Do you have a policy that isn’t performing the way it ought to be? Is your insurance agent wanting you to exchange into a new life insurance policy? Should you do this?
Here’s an overview with Pros and Cons and what you want to know to decide whether a 1035 is the best idea for you.
Also some clarification around when it makes sense to take a policy loan - triggered by a recent conversation with Dr. Jim.
Thank you Dr. Jim!
Resources:
Atlanta Workshop - May 4th 2019
How to Read a Life Insurance Illustration - Video
Special Interview with 2 Vice Presidents of Ameritas Life Insurance Company: Rob Sharp and Kelly Halverson
(Kelly is also an Actuary - one of the scientists who crunch the numbers behind life insurance)
Ameritas provides a great selection of whole life and term life insurance policies with strong guarantees.
Questions answered, big words made easy + an inside perspective on what it takes to make strong guarantees for policy owners at Ameritas.
Resources:
Ameritas 2018 Annual Report - Open
Ameritas Financial Highlights - Web Link
Direct of Non-Direct Recognition: What Difference Does it Make? - Blog
Come behind scenes and hear the reasoning around insurance company ratings, portfolio management, dividends and what it all really means for you in this special interview with Karl Kreunan - Vice President of Ohio National Financial Services.
Karl makes detailed life insurance topics easy. “Life insurance is a significantly underutilized financial asset” - use it in your life and enjoy the financial security it will provide for you and your family.
Astronaut Neil Armstrong knew the value of life insurance, but he couldn’t get any before his trip to the moon because of the high risk. Find out what he did instead.
Call us for a personal strategy session: 702-660-7000
Resources:
Everyone knows life insurance companies make good money, and they don’t share profits with all policy owners. Neither do all policy owners get equal benefits from guarantees provided by life insurance companies.
Discover what’s going on behind the scenes with company structure, and policy design. Armed with this knowledge you can maximize your guarantees from certain life insurance companies and share in the profits of the insurance company as well.
A good Life Insurance policy can be a wonderful financial tool once you sort through the fluff to reveal the real solid products that are available.
But IUL is no way to get great guarantees on your money. If you want to help your friend, you might even be able to pay them the commission they would have earned if you bought the policy from them, and still come out ahead! 😳
IUL is a hybrid insurance product based on term insurance where the cost of insurance is increasing every year. Discover why guarantees from Whole Life insurance are better…and if you really want to invest in the index fund, go ahead and invest directly so your growth isn’t capped. 💰
Also on this show - a request from a Wealth Talks listener on Social Security: What might happen in 20 years and should you be worried about not contributing more?
Premium Financing promotions seem to be all over the place today! But with so many moving pieces 🎲 are they really the best idea for you and your family??
Here’s what you need to know to secure a golden financial future 🔑 - from simple budgeting for extra expenses (like a new transmission) - to the best way to plan for life insurance premiums. You are listening to Wealth Talks 🎧
More info on Premium Financing:
Ever feel like you’re trying to decipher Mandarin Chinese when it comes to Life Insurance? 🤔
Each industry and niche has a special set of terms, and it all becomes much easier when you know what these terms mean!
Get the high-level overview today which is more than average life insurance agents know. And if you already have life insurance request a complimentary Policy Review to understand what you own.
Click here to Request Your Complimentary Policy Review
Today on Wealth Talks, join Tom, John, and Michele McFie as they take questions from the live audience at the Wealth Summit. Learn about the Perpetual Wealth Code, Life Insurance, and advanced strategies about money.
Contrary to Dave Ramseys' recent claim, Millionaires DO use Life Insurance to Grow and Protect Wealth. Let's take a look together at some real-life examples that debunk Dave’s misapplied data.
People often wonder why they would want to use participating whole life insurance rather than some other financial tool(s)? The quick answer is because no other tool has all the positive benefits without too many negatives. When you get all the facts on the table, it just makes sense.
Today on Wealth Talks, discover WHY it makes so much sense to include participating whole life insurance in your financial portfolio.
Resource Link: https://www.life-benefits.com/retirement-income-strategy/
Today on Wealth Talks Tom and Michele McFie talk about the lapse of Term and Universal Life insurance due to the ever-increasing premiums.
Beware of Indexed Universal Life (IUL) where guaranteed values are not long-term guarantees. Participation rates, cap rates, a different expense ratio or mortality experience can drastically affect your real experience and actual policy values.
Why we NEVER recommend or sell Indexed Universal Life (IUL) insurance and what you need to know to grow and protect your wealth.