Do you own “Investment Grade” life insurance? Banks do, Corporations do, and now so can you

What is “Investment Grade” Life Insurance…

life insuranceJust a few short years ago, I was staunchly opposed to whole life insurance, because that’s what I was taught by national “gurus” 25 years ago. I wholeheartedly believed (as many people still do) that if you need life insurance, you should buy a term policy, then take the difference in premiums between whole life and term and invest it in mutual funds.

So when a good friend of mine sat me down and tried to show me a whole life insurance plan, I nearly refused to listen. Many of you reading this will feel the same way, and nothing I say will change your minds. That’s fine — you’re entitled to your opinion just as I was entitled to mine.

Thankfully, my friend told me about “Investment Grade” life insurance. I soon realized that the gurus in my early years and the gurus of today were correct — based on the information they’d been given. The problem was their information was incomplete.

Whenever I hear a financial consultant (or anyone, for that matter) talk about less expensive premiums for term, I know they really don’t understand how this animal of properly designed “Investment Grade” whole life insurance really works.

With a properly designed whole life insurance policy, you get:

1. Principal protection guarantees of your money. Your cash value isn’t subject to market losses, as it is with mutual funds and other programs. When the stock market tanks again (and it’s never a question of if but when), you won’t lose a dime.

2. Guaranteed growth of your money every year. This will be interest-rate-driven based on the economy, but your account will move forward every year regardless of what the market does. This is compound tax-free growth and not the “average rate of return” you get with mutual funds. To be fair, in our current low-interest-rate environment, the growth rates are only in the 2 percent to 4 percent range but as you study further you start to realize the real wealth is not in the growth rate even when rates go higher.

Many financial advisers will tell you that your money would do better in a good mutual fund. But remember: When someone shows you an “average rate of return,” they can start taking that average from any time that benefits their example. This is not compounded growth but rather a factor of timing as to when you enter and exit the market. The stock market has wild swings; if that is acceptable to you, you should have much of your money in stocks. If not, maybe it’s time to consider a different way to think about investing. (Remember the period from March 2000 to October 2002, when the Nasdaq lost 78 percent of its value? It’s been 16 years since the dot-com bubble started to pop, and the tech-heavy index still hasn’t quite recovered to that level. If you like guarantees and stability then you have no business putting most of your money in the stock market.)

3. Dividends paid to policy owners are not taxable. Dividends aren’t guaranteed, but many reputable life insurance companies have been in business for more than 100 years and they’ve paid out dividends every year. The amount of that dividend will depend on several factors, but it boils down to how much profit the insurance carrier made. When properly paid to the policy owner, those dividends are not taxable.

4. A high starting cash value amount, based on what you contribute to the policy. Whole life policies that aren’t properly designed will have very little cash value in the early years.

But a properly structured life insurance policy will have high cash value percentages, even in its first year, and they increase every year. This becomes an important fact when you realize that access to your cash will help you grow wealth systematically regardless of market conditions

5. Access to your cash value at any age, at any time, for any reason — without taxes or penalty. This is a huge benefit of whole life policies compared to 401(k)s and IRAs, which impose multiple obstacles if you want to access your cash before retirement, and penalize you if the funds you borrow from them are not paid back by a certain time and at a certain interest rate. No such obstacles exist with a whole-life policy. So leave your cash in the policy if you wish, or borrow it back out and use it, the choice is yours.

6. The ability to use your account’s cash value to recapture lost depreciation on major purchases and interest and fees paid to banks. If you treat this pool of money inside the life policy like your own personal bank, you can loan it out to yourself and others to create wealth. (More on this in future articles, but suffice it to say for now that banking has been around in some fashion for thousands of years. Any business model that lasts that long is worth understanding and using to your advantage.)

7. Guaranteed insurance. Once the policy is in place, your insurance is guaranteed for the rest of your life. Many people assume they’ll be able to buy new insurance at any point in their life. But nothing is further from the truth — especially for those who’ve been diagnosed with chronic or terminal diseases. If you become seriously ill, don’t expect to be able to buy a new policy.

With many whole-life policies, you can add an “accelerated death benefit rider” for little to no cost, which will give you access to a large portion of your death benefit during your lifetime if you have a terminal or chronic illness. I just had a colleague with a client who was diagnosed with Lou Gehrig’s disease, or ALS, and was sent a check from his insurer for more than 70 percent of the eventual death benefit. He’ll be able to enjoy his remaining time without worrying how he will pay his bills.

8. The ability to combine your life policy with the worlds of real estate, private lending and auto financing to accelerate your wealth, both inside and outside of the policy. Just remember that any funds inside the policy are tax-free for life.

9. Protection from long term care and chronic care expenses. Well written policies with the proper companies could provide the ability access a portion of your eventual death benefit during your lifetime to help pay for assisted living or long term care expenses. This will insulate and protect your other wealth so you don’t spend a lifetime building wealth only to give it all back before you pass away leaving nothing for your family.

10. Death benefit. In addition to all the benefits you can make use of while you’re still here, at heart, this investment is still a life insurance policy, so when you eventually die, there will be a sum of money left behind to your beneficiaries — tax-free.

There’s a reason family dynasties, banks, and big corporations have been using life insurance for generations to grow and protect their wealth. Even when subject to estate limits, these death payouts go a long way toward promoting the tax-free, inter-generational transfer of wealth.

Of course, insurance company policies and riders will vary by state due to state regulations and depending on the actual insurance carrier. But you won’t find another type of account or investment that has all these benefits in one investment — not 401(k)s, IRAs, mutual funds, stocks, bonds, precious metals, real estate, nor any other account.

To engage with me further on this kind of policy, please email me directly at john@wealthwithoutstocks.com and visit our site at www.wealthwithoutstocks.com for many free videos, articles, archived interviews and more!

56 thoughts on “Do you own “Investment Grade” life insurance? Banks do, Corporations do, and now so can you”

  1. Hi just wanted to give you a quick heads up and let you know a few
    of the pictures aren’t loading properly. I’m not sure
    why but I think its a linking issue. I’ve tried it in two different
    web browsers and both show the same outcome.

  2. Hey I know this is off topic but I was wondering if you knew of any widgets I could add to my blog that automatically tweet
    my newest twitter updates. I’ve been looking for
    a plug-in like this for quite some time and was hoping maybe you would have some experience
    with something like this. Please let me know if you run into anything.
    I truly enjoy reading your blog and I look forward to your new updates.

  3. Fantastic goods from you, man. I have understand your stuff previous to
    and you’re just extremely wonderful. I really like what you have acquired here, really like what you’re stating and the way in which you say
    it. You make it enjoyable and you still take care of to keep it wise.

    I can not wait to read far more from you. This is really a great site.

  4. Excellent post. I was checking continuously this weblog and I’m inspired!
    Very useful info specially the final part 🙂 I handle such information a lot.
    I used to be seeking this particular info for a very
    lengthy time. Thank you and good luck.

  5. Hi i am kavin, its my first occasion to commenting anywhere,
    when i read this paragraph i thought i could
    also make comment due to this brilliant paragraph.

  6. Good day I am so happy I found your web site, I really found you by
    error, while I was researching on Askjeeve for something
    else, Regardless I am here now and would just like to say thank you for a incredible
    post and a all round entertaining blog (I also love the theme/design), I don’t have
    time to browse it all at the minute but I have bookmarked it and also added in your RSS feeds, so when I have time I will be back to read more, Please do keep up the great job.

  7. Great post. I used to be checking continuously this weblog and I am
    inspired! Extremely helpful information specifically the remaining phase 🙂 I maintain such
    info a lot. I was seeking this particular
    information for a very long time. Thanks and good luck.

  8. May I simply just say what a relief to discover somebody that truly understands what they are talking about on the net.
    You actually understand how to bring a problem to light and make it important.
    A lot more people should check this out and understand this side of the
    story. I can’t believe you are not more popular since you most certainly possess the gift.

  9. Good day! This is kind of off topic but I need some help from an established blog.
    Is it tough to set up your own blog? I’m not very techincal but I can figure things out pretty quick.
    I’m thinking about making my own but I’m not sure where to begin.
    Do you have any points or suggestions? Thank you

  10. Thank you for another great post. The place else could anybody get that type of information in such a perfect approach of writing?
    I have a presentation next week, and I’m on the look for such
    info.

  11. Excellent website you have here but I was curious if you knew of any message boards that cover the same topics discussed in this article?
    I’d really love to be a part of community where I can get suggestions from other knowledgeable people that share the same interest.
    If you have any recommendations, please let me
    know. Cheers!

  12. Thank you a lot for sharing this with all people you actually realize what you are speaking about!
    Bookmarked. Kindly additionally consult with my website =).

    We can have a link alternate agreement between us

  13. May I simply say what a relief to find somebody
    that actually knows what they’re discussing online. You certainly understand how to bring an issue to light and make it important.
    A lot more people ought to check this out and understand this side of the story.
    I was surprised you are not more popular because you certainly have the gift.

  14. Hey there I am so delighted I found your blog page, I really found
    you by accident, while I was searching on Digg for something else, Anyhow I am here now and would
    just like to say many thanks for a tremendous post and a all round entertaining blog (I also love the theme/design), I don’t have time to read through it all at the minute but I have bookmarked it and also added in your RSS feeds, so when I have time I will be back to read more, Please do keep up the fantastic job.

  15. We still cannot quite believe that I could possibly be one of those reading through the important guidelines found on your web site. My family and I are sincerely thankful on your generosity and for presenting me the potential to pursue this chosen profession path. Thanks for the important information I managed to get from your web page.

  16. I¡¦ve been exploring for a little for any high-quality articles or weblog posts on this kind of area . Exploring in Yahoo I eventually stumbled upon this site. Studying this information So i¡¦m happy to exhibit that I’ve a very excellent uncanny feeling I discovered just what I needed. I most indisputably will make certain to don¡¦t put out of your mind this web site and give it a glance regularly.

  17. Howdy! This post couldn’t be written any better! Reading this post reminds me of my previous room mate! He always kept chatting about this. I will forward this write-up to him. Pretty sure he will have a good read. Thank you for sharing!

  18. Right here is the perfect webpage for anyone who hopes to find out about this topic. You realize so much its almost tough to argue with you (not that I personally would want to…HaHa). You certainly put a fresh spin on a subject which has been written about for many years. Wonderful stuff, just wonderful!

  19. Great goods from you, man. I have understand your stuff previous to and you’re just extremely excellent. I actually like what you’ve acquired here, really like what you’re stating and the way in which you say it. You make it enjoyable and you still care for to keep it smart. I can not wait to read far more from you. This is actually a great website.

  20. Greetings from Colorado! I’m bored to tears at work so I decided to browse your site on my iphone during lunch break. I love the knowledge you present here and can’t wait to take a look when I get home. I’m shocked at how quick your blog loaded on my phone .. I’m not even using WIFI, just 3G .. Anyways, fantastic site!

  21. Hey there! This is kind of off topic but I need some help from an established blog. Is it hard to set up your own blog? I’m not very techincal but I can figure things out pretty quick. I’m thinking about creating my own but I’m not sure where to start. Do you have any ideas or suggestions? With thanks

  22. Thanks for any other informative site. Where else may I get that type of info written in such an ideal manner? I’ve a project that I’m just now running on, and I’ve been on the glance out for such information.

  23. Howdy! This is my first visit to your blog! We are a collection of
    volunteers and starting a new initiative in a
    community in the same niche. Your blog provided us valuable
    information to work on. You have done a outstanding job!

  24. Normally I don’t read post on blogs, however I wish to say that this write-up very compelled me
    to try and do so! Your writing style has been amazed me.
    Thanks, very nice post.

  25. Great post however , I was wanting to know if you could write a litte more on this topic? I’d be very grateful if you could elaborate a little bit further. Kudos!

  26. I drop a comment each time I appreciate a post on a website or I have something to contribute to the discussion. Usually it’s caused by the sincerness communicated in the post I browsed. And on this article Do you own Investment Grade life insurance? Banks do, Corporations do, and now so can you. I was actually excited enough to drop a thought 🙂 I do have some questions for you if you tend not to mind. Could it be just me or does it seem like some of these responses look as if they are written by brain dead individuals? 😛 And, if you are posting on additional social sites, I’d like to follow everything fresh you have to post. Would you make a list the complete urls of your community sites like your Facebook page, twitter feed, or linkedin profile?

  27. Hello There. I found your blog using msn. This is a really well written article. I will be sure to bookmark it and return to read more of your useful info. Thanks for the post. I will certainly comeback.

Comments are closed.