INSURANCE AS AN ASSET

Category: INSURANCE AS AN ASSET

Is Whole Life Insurance a Good Investment? (VIDEO)

“I have often said that if people truly understood this product, that they would line up around the block to purchase it. That product is participating (dividend-paying) mutual whole-life insurance.”
– Todd Langford, Truth Concepts financial software

“Is Whole Life Insurance a Good Investment?”

life-insurance-cash-value-returns-calculator

Perhaps no question has generated as much controversy on financial blogs and forums as this one.

Indeed, The White Coat Investor website’s most popular post on whole life insurance (written by a self-appointed, unlicensed financial “expert” who is a full-time physician) has generated over 800 comments from both fans and foes of whole life. The posts begins with a warning that the comments may take “over 4 hours to read,” and links to further articles that reveal the author’s limited understanding of the product. Financial planning with insurance is a curious hot button.

“Typical” advisors, media-hyped financial gurus and bloggers say, “Stay away from whole life insurance!” Meanwhile, many passionate agents and advisors try in vain to correct the misconceptions, irritating others who believe their enthusiasm is motivated only by commissions.

And regardless of which side of the fence the opinions fall, both sides often get their facts wrong, and few seem to understand the role of saving and liquidity in an investor’s personal economy. The long-term, generational benefits of both cash value and death benefit are often overlooked. Diversification is also poorly understood, and the fact that you can’t have all of your dollars in equities (or even in stocks and bonds) and be properly “diversified.”

We have noted in a related article about whole life insurance that it is not properly classified as an investment, however, it IS an EXCELLENT place to store cash for many investors. Our Ultimate Guide to Financial Planning Myths is another excellent resource for learning how insurance really works.

But what is the TRUTH about whole life insurance RETURNS?

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Gross Returns vs. Net Returns (Episode 051)

Understanding Life Insurance Dividends, Costs, and Returns

P4P051-GrossReturnsVsNetReturnsTodd Strobel and Kim D.H. Butler sit down to talk about the truths in life insurance returns. Todd breaks down the gross returns and how it’s offset by your policy’s expenses. Kim analyzes what returns for life insurance in 2015 look like. Finally, they implore listeners, if you have any questions or areas of confusion, reach out and we will explain it further and more clearly.

How does whole life differ from IUL in how returns are calculated? What ARE the 2015 returns right now for whole life policies at various ages? Find out on today’s episode!

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Saving for Life: A Billionaire and a Financial Bunker

“Do not save what is left after spending, but spend what is left after saving.”
-Warren Buffet

The Sage of Saving

Warren_BuffettWarren Buffet is one of the world’s richest men, and is seen as one of the greatest long-term investors of our time. But a key secret to his ability to amass great wealth gets much less attention than his savvy purchases of businesses and assets through Berkshire Hathaway.

Many investors and business owners have earned great fortunes, but have spent them almost as quickly. Buffet is famous for frugality, understanding that saving more is the first step to enjoying the fruits of compound interest. To him, each dollar is a seed that he can plant, knowing it will multiply into many more dollars over time.

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Whole Life Insurance Provisions (Episode 043)

What Happens If You Skip Paying Your Life Insurance Premiums?

P4P043-WholeLifeInsuranceProvisions

Today, on the Prosperity Podcast, Kim D.H. Butler and Todd Strobel explain what occurs when whole life insurance policyholders miss one or more premium payments. They discuss the flexibility built into whole life insurance policies, and what many policyholders forget – that if they have an interruption in income, their policy may be able to HELP them pay essential bills! Kim breaks down the order to use your money when you’re able to make payments again: base premiums, repaying the policy loan, or paid-up additions? Todd looks at the benefits in the self-employment realm.

It’s important to have your money accessible when it’s needed – do you have that safety net? Find out on today’s episode how life insurance provisions can help.
If you would like the opportunity for us to answer your question on the show or to be a guest on our show, be sure to keep sending us questions and reach out to us!

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Can You Sell Your Life Insurance Policy? (Episode 042)

Should you sell or cancel your life insurance policy? What are your options?

P4P042-MakingOpportunityOrientedDecisions

Todd Strobel and Kim D.H. Butler explore what people do when they can’t (or don’t want to) make their life insurance premium payments. On today’s episode, Kim dives into the possibility of selling your policy to investors of life settlements vs. just cancelling your policy and taking the cash value.

Kim discusses the benefits and potential drawbacks of selling a policy, and who might be able to sell a policy. Todd chimes in with the type of policyholder that may have the most to gain from selling their death benefit. Finally, they assess how life settlements have increased the flexibility and choices for both investors and policyholders.

If you are “too young” to sell your policy, you’ll also want to read this article for more options: “7 Ways to Save a Life Insurance Policy (even when you can’t afford the premiums)”

If you would like the opportunity for us to answer your question on the show or to be a guest on our show, be sure to keep sending us questions and reach out to us!

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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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