INSURANCE ADVICE

Category: INSURANCE ADVICE

5 Ways Your Business Can Benefit from Life Insurance (Part 2)

african american construction manager in office

In part one of “5 Ways Your Business Can Benefit from Life Insurance,” we named 3 Myths that business owners may have about life insurance. We also mentioned a study conducted by The Guardian Life Small Business Research Institute, which interviewed nearly 700 small business owners to determine their top ten business concerns.

As we summarized in part one, five of the top ten financial concerns can be impacted by life insurance solutions for business owners:

  1. Planning for the future
  2. Tax minimization
  3. Cash flow management
  4. Financing capital expenditures
  5. Providing employee benefits (which also helps with what these small business owners identified as their TOP challenge of finding the right employees).
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5 Ways Your Business Can Benefit from Life Insurance (Part 1)

“Cash value life insurance plays a massive role in financial institutions, corporations and banks…. Not only does it increase their financial stability and reduce their taxes, it is an ideal place to fund employee pensions, healthcare costs, and other benefits.”
– Jake Thompson, Money. Wealth. Life Insurance.

business-life-insuranceTwo weeks ago, we shared how you can use a life insurance policy’s cash value to obtain loans at preferred rates… from a bank! See our article, “Collateral Assignment: Banking on Your Life Insurance Policy,”  for details.

Today, we’ll explore 5 ways that life insurance helps business owners solve some of their biggest challenges. But first, let’s set straight some myths about businesses and life insurance.

3 Myths About Life Insurance for Business Owners 

Myth #1: Life Insurance is only for big businesses. 

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The Facts of Life Insurance

How Old is “Too Old” for Life Insurance? Understanding Life Insurance Rates of Return, Insurability, and Insurable Interest

P4P-019-TheFactsofLifeInsuranceOn today’s episode of the Prosperity Podcast, Kim Butler and Todd Strobel analyze whole life insurance rates of return for different age brackets. Surprisingly, this reveals that “you’re never too old for life insurance!” The current net rate of return is discussed.

Finally, if you do not qualify for life insurance due to health or lifestyle risk factors, have you considered the alternatives to insuring yourself? There are ways to be the policy owner without having to qualify for life insurance if you can establish an insurable interest in someone else, such as a child, grandchild, business partner or key employee.

Kim and Todd also discuss something she is very proud of: Kim’s daughter, Kaylea Butler has released a book, Every Day is A Miracle: Lessons from Susan Rammekwa.. The book be purchased on <http://amzn.to/1HZt6lY>Amazon.com.

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Using Life Insurance Before Death

Give While You Live!

P4P-006-UsingLifeInsuranceBeforeDeath

Picking up where they left off last episode, “No BS Money Guy,” Todd Strobel, and best-selling financial author, Kim D. H. Butler, resume talking about life insurance and how we can use it for our benefit before our death.

Todd and Kim discuss two different working examples of how we can utilize our death benefits during our lifetime. They present the pros and cons of various life insurance policy options and make recommendations on which they believe could be in our best interest in certain situations.

Many people do not realize how life insurance can be used to transfer wealth while the policyholder/insured is still alive and well! We are encouraged by the hosts to not wait until death to use our insurance to benefit others, but rather to give while we live.

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Financial Reform or Regression? The Battle Over Dodd-Frank Provisions and Fiduciary Vs. Suitability Standards

” Vested interests have never been known to have willingly divested themselves unless there was sufficient force to compel them.”
– B. R. Ambedkar

Financial Reform or Regression? The Battle Over Dodd-Frank Provisions and Fiduciary Vs. Suitability StandardsIn 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act provided meaningful (if imperfect) reforms in an attempt to insure that the financial meltdown of 2008 would be the only of its kind. In addition, the bill authorized the SEC to enact a rule that would require all financial professionals – whether brokers or planners or advisors – to operate from a fiduciary standard, free of conflicts of interest. However, aside from hot debates, little has actually been done towards such an end. Now the Department of Labor is being tasked with the job, amidst renewed debate and much opposition.

The expansion of the fiduciary standard is not the only element of the Dodd-Frank legislation that is under attack. Nearly 5 years after its passage, Wall Street has done everything possible to undermine and unravel meaningful protections for Main Street investors. Restrictions preventing the financial recklessness that led to the 2008 crash are slowly being rolled back or de-clawed.

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Has Kiplinger’s Sold Out?  The Financial Media Bias (Part 2 – The Stock Market and Saving Money)

“Personal finance publications bias their recommendations—either consciously or subconsciously—to favor advertisers.”
– Jonathan Reuter and Eric Zitzewitz, Quarterly Journal of Economics

Last Updated: August 6th, 2020

Table of Contents

Has Kiplinger’s Sold Out (Part 2)

Misinformation

Two weeks ago, we started a rant inspired by a single issue of Kiplinger’s that I picked up to read on a plane. In Part 1, we exposed the fallacies of the “How Much You Really Need to Retire” article that warned people not to “over-save” for retirement (since surely they can live on 60% of their former income), and faulty advice on “The Best College Savings Plans.” In case you missed it, here’s Part 1 of this series on the financial media bias.

Today, we look at three other highly problematic articles from that one slim Personal Finance magazine.

Hot Stock Gambles – “Top Picks of the Top Pros”

Frankly, the picks and comments included by some of the money managers in this article are telling.

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