Category: Life Insurance

Be your own bank or another commonly used phrase is “Infinite Banking,” which in essence is a whole life insurance policy structured in a way to create early high cash value growth.

These types of insurance policies are not focused on the death benefit, but they do however provide cash value accumulation and growth which allows you to overfund your life insurance policy and use the money as you very well please while you’re still living.

What Are The Benefits?

The cash value in your policy will continue to grow with uninterrupted compound interest, although you borrowed against the cash value to fund deals or purchase other underlying assets.

In most states, your policy is creditor-protected from liens, levies, and lawsuits.

Here’s what happens when you borrow from your policy vs. a traditional bank:

• Lower interest rate
• You determine the payback schedule
• No credit check required
• Not required to pay back the loan (however there could be tax consequences involved if the policy lapses)
• Loans can be funded immediately
• While your loan balance remains outstanding… your policy continues to get paid dividends and earn interest on the full amount of cash value as if it was never loaned out
• You can repeat this over and over as long as there’s cash value in the policy

Infinite banking is a fundamental way to build wealth that you harness and control. By working on how we think about money and the flow of income and payments you can contain so much more cash that passes through your hands.

 

 

 

Being an entrepreneur and creating a lifestyle that many can only dream about defeats the purpose if it can all be taken away with the snap of a finger.

That’s why it is imperative to educate yourself on the best life insurance for entrepreneurs and why you need insurance for your business.

According to a 2017 study made by the Life Insurance Management Research Association (LIMRA), 40 percent of entrepreneurs do not see the value of getting life insurance coverage. Share on X

As entrepreneurs, we’re constantly investing back into our business to make it more profitable right?

So why not invest in a product(s) that will keep the business running status-quo in an event an injury or sudden illness occurs preventing us to perform the tasks necessary to create income.

More importantly, if a key member of your team (including yourself) suddenly passed… is there enough funds reserved to compensate for the loss?

Our brains may not always be wired for conversations about life insurance, and there may be some other investment opportunities you’d prefer to spend your money on, but accidents happen all the time.

Did you know that medical professionals suggest that entrepreneurs are more susceptible to health-related problems compared to other professionals? In part because of their rigorous and difficult lifestyles.

Here’s a look at two of the most commonly known insurance products available on today’s market. It would behoove you to educate yourself and take full advantage of how these products could benefit you, your business, and of course your family.

Term Life Insurance

This type of policy is exactly what it sounds like… it’s life insurance that covers a person for a duration of time, aka “term”. This type of insurance is a great fit for young entrepreneurs that have a lot to risk.

Because term insurance is inexpensive with such a high return… it can also be used as mortgage protection. The only caveat is… once the term is up, and the policy owner outlives the term you have to renew the policy for yet another term policy.

However, you can always convert to a permanent policy if it makes more sense.

Keep in mind that there is no savings component with term life insurance and that it should be an option to consider when covering any possible loss of income.

Permanent, Or Whole Life Insurance

Now, on the other side of the table is permanent insurance, or what most people refer to it as whole life insurance.

Permanent insurance last forever… you can never outlive it long as you continue to pay the premiums. With that said, the premium itself will never increase, however, the cash value of the policy will.

Let me explain – besides the death benefits… it has a saving portion that can accumulate over time. The cash value can be borrowed from the policy and used for just about anything.

However, the downside of borrowing is that it reduces the death benefit of the policy by whatever the outstanding balance is.

For example, let’s say you have a $50,000 permanent policy that builds cash value north of $10,000 over several years and you borrowed $10,000. Well… you’ve only managed to pay back $5,000 of the loan before you died of a sudden death.

As a result of the $5,000 outstanding loan balance, the beneficiary will receive a death benefit of only $45,000. Needless to say, a permanent policy will cost you a lot more money to start.

…the earlier you start a permanent policy the less it will cost you (the same applies to term as well).

Now ask yourself… what would happen to you, your business and your family if an unfortunate accident happened?

Would it mean that all you’ve invested in your business would come tumbling down?

More importantly, would your family suffer because of your loss? These are things we as entrepreneurs should be thinking about.

When you insure your life and your business your family is protected long after you are gone and your business will continue to exist and thrive.

If you don’t already have a life insurance policy in place… please go here now and request a free quote or contact me personally.