How can you take advantage of the advantages of dividend paying whole life insurance? Are you aware of the tremendous advantages that are available to you?
The bottom line is that most of the media and most of the people in the life insurance business have very little understanding or clue about how to use this product. The whole concept is to uniquely fund and structure a dividend paying whole life insurance contract. This concept was really developed by Nelson Nash and I highly recommend you read his book, “Becoming Your Own Banker”.
Once you have funded the policy and creating a liquid fund that you can borrow from, you start to loan yourself money to finance your big ticket purchases. Each whole life contract has a maximum amount of money that you can put in it before it loses its tax advantage. When I say tax advantage, I am referring to the cash value growing tax deferred and the ability to axcess the money on a tax-free basis if done correctly. Each contract has a MEC (Modified endowment contract) ceiling which is the maximum amount before the tax advantage goes away. If you go over the MEC level than the internal buildup of the policy is taxed the same as an annuity. This system allows you to recapture much of the interest that you would typically pay out to a finance company and make their bank grow. This way you can buy a new car and finance it yourself. For example, pull out 40,000 to buy that new car and then pay yourself back at an interest rate above the insurance companies interest rate. When you amortize these payments, like a bank would, you pay yourself back over a period of time. Let’s just say you loan yourself 40,ooo and amortize the loan over 4 years. The insurance company charges about 6 percent for the loan and you pay yourself back at 10 percent. The spread that goes back into your policy is similar to the spread that the bank would typically make. At the end of the 4 year period you own the vehicle outright, your bank has been paid back the full 40,000, and it will have grown with the 4 percent spread it has been making from each payment.
This concept tends to be a major paradigm shift for people, but it works if done properly. The key is that you set it up properly and try and raise the MEC ceiling as high as possible and then capitalize it so you have ample funds available to use. On top of being able to use these funds for loans to your self, it will create a great tax free retirement fund. The living benefits of this system is tremendous and it will also give you a great permanent life insurance benefit that will grow large over time.
Some stats are mind-boggling. Weâll spend weeks planning a family vacation or countless hours studying Consumer Reports prior to purchasing a flat screen TV. But when it comes to more substantive matters, like making choices about the various insurance benefits available to us through our companyâs benefits program, most Americans take a completely passive approach.
We Americans are an independent lot. We donât want other people making decisions for us. Not the government. Not our neighbors. Not even our friends. But when it comes to important financial security matters like choices regarding our life, disability or health insurance coverage, we have no problem letting our employers decide whatâs best for us. Washington
Want to live in the healthiest region in the nation and delay using your life insurance? Try San Francisco’s Bay Area. Three of its cities are in the Top 10 list of healthiest cities in the United States.
In the first extensive “health report card” of the nation’s 50 largest metro areas, Bert Sperling of Sperling’s BestPlaces checked data from public and private sources. He then scrutinized each area in 50 select measures in the major categories of physical activity, health status, nutrition, lifestyle pursuits, and mental wellness. The Top 10 cities are:
Why Should I Go To A Life Insurance Broker?
A life insurance broker is a dedicated person that encourages and listens to the needs and wants of a person looking for life insurance. It doesn’t matter what type of life insurance you are looking for, whole or term life. A broker will be able to find suitable rates for you to choose from. When you contact a life insurance broker, you can get the life insurance you need from a company in another city or state that you probably never even heard of.
There are many benefits to dealing with a life insurance broker when you want to purchase a life insurance policy. T
Life Insurance Awareness Month is now over, and the results are starting to come in for September. According the MIB Life Index, applications for individual life insurance for Boomersâage 45 to 59âwere up 2.7%, and for those 60 and older, applications soared 13.8%. The only dip was for younger applicants.
Overall, the volume of individual life insurance applications this September increased 1.8% over the same time last year and represented a 10% jump from Augustâs numbers. What does this indicate? It means
Is life insurance payout community property?
my son died a few months ago and i was sole beneficiary on the life insurance policy. i am married and living in texas. if i get divorced, is the money from my sons (son is from my first marriage) policy community property? is my husband entitled to any of it?
i know in texas inheritance is NOT community property, but i wasn’t sure about life insurance benefits.
thanks
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Texas mortgage loans are very popular and useful for a variety of purposes. In the form of a debt consolidation loan, a new mortgage can help get homeowners out from under mounting bills. Texas mortgage loans are also a popular way to pay for improvements that increase the livability and market value of homes.
The Atlanta Journal-Constitution published an article on September 20, 2009 by M. Bryan Freeman and Stephen B. Wilkins titled âLife insurance good asset for consumers.â The article pointed out that âLife insurance may not be thought of as an asset class because its buyers may not think of it as a flexible investment. That is, they expect to lapse it, take a minimal cash surrender value payout or, of course, pass away and leave the proceeds to their heirs.â
But it further points out that in todayâs uncertain financial times, wealthy families are purchasing life insurance âto generate the maximum amount of death benefit with the most efficient premium stream.â They are not trying to grow cash value but enhance the overall return on the fixed income portfolio. This strategy is a b