Cash value life insurance is the ultimate leveraging financial vehicle. It is pennies that buy dollars and dollars that do the work of many dollars. It provides for your family if you die too soon. It takes care of you if you live too long. With waiver of premium, it is self-completing if totally disabled. Many policies provide for catastrophic illness, allowing you to access benefits if you have a heart attack, stroke or cancer. Many policies provide for terminal illness, allowing you to access benefits if a doctor determines you have less than a year to live. Many policies even provide long term care benefits.
There simply is no other comparable vehicle in the financial world. Yet, it is greatly misunderstood by the public and even by the people who sell it.
Let’s examine those concerns.
- It’s not a good investment. Whole life cash values have been one of the best performing asset categories for the last ten years and that will continue.
- Buy term and invest the difference. No one invests the difference. Even if they did invest the difference, what success would they be having?
- Life insurance has too many fees and costs. These are more than fair when the leveraging quality of life insurance and its ability to provide multiple benefits using the same dollar are factored in.
And the coup de grace of cash value life is tax-free access to the money in the future. Taxes will be higher in the future. Benefits will be lower. People will pay more out of pocket, and they will have less discretionary money to buy goods and services.
Our customers face a dilemma: Do they protect their families or save for the future? Cash value life insurance provides the opportunity to do both. It is efficient and tax-free. We have to teach our clients to pay their taxes now and send tax-free money to the future. Life insurance is the best way to do so.