The value of cash value life insurance

I have been selling life insurance since January 22, 1973, and this is truly is the greatest time to sell cash value life insurance. It provides amazing value for these uncertain times.

This is because cash value life insurance uses the financial miracle of leveraging. Pennies can purchase dollars. More importantly, one dollar can do the work of many dollars.

Please look at this list of things cash value life insurance can do for individuals, families and businesses. Do not assume that your prospects and clients already know these fabulous benefits are available. 

• It will take care of your family or business if you die too soon. If your prospect says that she cannot afford the premium, ask how her family or business will afford her not being there.
• It will take care of you if you live too long. It can provide guaranteed lifetime income that cannot be outlived by using the accumulated cash values. Even better, this income can be paid income-tax free. Taxable income would require 20 percent to 40 percent higher payouts to provide the same “net” income.
• When waiver of premium is added, these plans are self-completing if you become disabled.
• Many plans provide catastrophic illness benefits. That means if you have a catastrophic illness like a heart attack, stroke or cancer, you can access some of the benefits while you are alive. Some plans are designed to provide long-term care benefits in addition to death benefits.
• Many plans provide terminal illness benefits. That allows for financial plans to be put in place before the primary breadwinner dies, and helps to relieve some of the stress that loved ones endure during those terrible times.
• The benefit is paid to the named beneficiary income-tax free and does not have to go through probate. This allows for quick access to funds, and it also provides privacy.
• It is a great savings vehicle. Many cash value policies have provided 4 percent to 5 percent tax-free long-term growth.
• Substantial access to the money is available via loans or withdrawals.

I used to hate selling life insurance; it was a great product, but whenever I did reviews it was hard to explain why the policy did not do as well as the original illustration. That was because interest rates declined for the last 30 years. Now the cycle is going in the other direction. Every initial illustration I present will probably provide the worst performance and as interest rates rise, many in-force ledgers will look better and better. I can tell my clients if they like what I am recommending now, they will adore it in the future.