7 Ways to Save a Life Insurance Policy (even if you can’t afford the premiums)

“I bought a new life insurance policy but the small print is impossible to understand. All I´m sure of is that after I die, I can stop paying.”

Do You Want to Stop Paying Your Life Insurance Premiums?

Insurance Concept
What happens if you own a whole life policy and you don’t want to keep paying the premiums, but don’t want the policy to lapse? Or when you can’t afford the premiums any longer, but still want coverage?

If payments are stopped without altering the policy or communicating with the insurance company, you could lose the policy, just like a homeowner can go into foreclosure if they stop making mortgage payments.

But there are other options to simply letting a policy lapse! These options are well-worth considering, especially because:

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Suze Orman: Follow Her Example – Not Her Advice!

“…We place a lot of “stock” in the so-called “experts” and financial celebrities…. Unfortunately what they do and what they say are of two opposing philosophies.”

actions-vs-wordsActions Speak Louder Than Words

It seems that the best advice can be learned not from listening to financial corporations and so-called experts, but by watching what they DO.

Banks put billions of dollars into “BOLI” – bank-owned permanent life insurance  – while advising their customers to put their money into savings accounts and CD’s earning next to nothing. In a recent video from the Palm Beach Letter, a finance insider confessed that many financial gurus and professionals have none of their own dollars in the stock market.

In Suze Orman’s case, there is also a distinct gap between what she advises and the actions she takes – a gap is so wide that one blogger stated she must hate the financial advice she doles out through books and TV!

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Is Whole Life Insurance a Good Investment? Busting the ROI Illusion

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

The question Where to Invest and many arrows pointing you to various investment choices to grow yourIs whole life insurance a good investment?”

Few financial questions have ever sparked more controversy than this one. One post on a blog about investing for doctors (which asserted whole life should be avoided) produced more controversy, comments, and “hate mail” than all of his other posts combined – a current total of 764 comments, which the author/moderator warns readers “may take you over 4 hours to read.”

The short answer to “Is Whole Life Insurance a Good Answer” may shock you if you’ve been reading our blog  for long, because, NO, we don’t consider it to be a good “investment”!

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Is Gold a Good Investment? (Part 1)

“Mr. Bond, all my life I have been… in love with gold. I love its colour, its brilliance, its divine heaviness… I ask you… is there any other substance on earth that so rewards its owner?”
– Ian Fleming, Goldfinger

Golden egg in nestPeople have held and invested in gold since long before our U.S. dollars existed. Gold is mentioned as a valuable and precious metal in ancient texts and scriptures, such as those describing the gifts that the wise men  offered to the baby Jesus. It has been traded as money and it has been used to back the value of currencies. It is used to craft fine jewelry and in the circuit boards of mobile phones, due to its ability to conduct electricity even better than copper.


But is gold a good investment today?

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How to Buy Life Insurance for a Child

“The sooner you save, the faster your money can grow…”, “The Five Most Important Money Lessons to Teach Your Kids”

Are you considering buying life insurance for a child?

Piggy bank familyIn last week’s post, “Life Insurance for Children and Grandchildren – The Surprising Benefits,” we revealed why many people decide to get life insurance for a child, from newborns to adult children. Among the benefits:

  • In a properly constructed policy, the cash value of a policy on a younger insured grows at an attractive rate of return for the policy owner.
  • Life insurance represents unparalleled estate planning benefits, such as the ability to transfer assets to the insured free of income, state, or gift taxes.
  • Policy owners appreciate the liquidity and flexibility of the cash value, including the ability to collateralize it or use it themselves, if needed.
  • The policies offer protection from financial loss, including the loss of income of a grieving parent.
  • Getting life insurance for a child guarantees future insurability.
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Life Insurance for Grandchildren and Children? The Surprising Benefits

“If you want to start an argument, ask a group of financial advisers what they think about buying life insurance for children.”


Should you get life insurance for grandchildren or for your child? Don’t people only “need” life insurance if they have a family to support? Why do people insure their children and grandchildren, and does it make sense to insure an heir?

We believe that life insurance is a WANT, not an absolute need, and there are several reasons why a lot of people – who have done their due diligence – WANT to get life insurance for their children.

Actually, we’ve received more requests recently from people who want to set up life insurance policies on their children! Why? There are many reasons – we give you five below. (Often, the biggest reason is the first.)

Benefits of life insurance for grandchildren and children:

1. People desire to maximize the growth of their savings (cash value) in tax-advantaged whole life policies.

The younger the insured is, the lower the cost of insurance is within the policy. This means that cash value grows more quickly and at a faster rate. The internal rate of return on a whole life policy on a younger person engineered for maximum cash value (maximizing paid-up additions) is currently around 4 to 5%. That’s at least 10 times better than most bank CD rates!

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