Investing money is a difficult and confusing process for most. While you want to earn the highest return possible, you worry that too much risk could result in a big loss. There are thousands of financial “experts” in the world, eager to impart advice and consultation, but how are you supposed to select the right one?
One option is Dividend-Paying Whole Life Insurance. While not as publicized as a 401(k) or investing in the market, Whole Life Insurance is a viable, safe method for growing wealth while providing a safety net for your loved ones.
Please take a look at the answers to the FAQs below and consider if Dividend-Paying Whole Life Insurance through Bank On Yourself is an option for you.
1. What is it Dividend Paying Whole Life Insurance?
Whole life insurance is a type of permanent or “cash value” life insurance that provides benefits for the “whole” of your life (versus term insurance that only lasts for a specific period of time). Some companies offer dividend paying whole life insurance policies which means the policies pay dividends. Dividends are not guaranteed, however some companies have paid them every single year for over 100 years, including during the Great Depression.
Whole life policies have a guaranteed, pre-set annual cash value increase. The guaranteed increases are based on a “worst-case” financial results scenario projected by the insurance company. Then, at the end of the year, the company does an accounting of the death claims paid, their earnings, and the expense of running the company and the premiums it collected. If they did better than their worst-case projection, they pay the policy owners a dividend.
An added benefit of this type of policy is that you can borrow your equity (cash value) in the policy and pay it back on your terms, rather than letting the bank or credit card company dictate the terms. In effect, that lets you become your own source of financing and get access to money when and how you want.
Through market downturns, economic booms and busts for more than 160 years, Dividend-Paying Whole Life Insurance has remained profitable and safe.
2. So what’s the downside to this type of life insurance or investment opportunity?
The premiums of Dividend-Paying Whole Life Insurance are higher than those for Term Life Insurance. However, term life insurance is like renting insurance. At the conclusion of your term, you have zip to show for it.
If your health has deteriorated, you’ll pay more to renew a term policy, or you may not qualify for coverage at any price.
3. What happens to the insurance policy dividends?
You can leave them in the policy to buy additional coverage at the lowest possible cost, which has the advantage of growing your policy in the most efficient way possible.
You can also use the dividends to pay some or all of the scheduled premiums, or you can take them in cash.
4. How can Bank On Yourself help me get the most out of my policy?
There are other companies out there offering navigation through choppy financial waters. Bank on Yourself delivers better customer value than competitors through:
- Lower Commissions – the Bank On Yourself Authorized Advisors earn on average 50-70% less than advisors who sell traditionally designed whole life policies. And your cash value grows up to 40 times faster than it would in a traditional whole life policy. (To learn more about how these policies are different from the ones most financial experts talk about, download a free, 18-page Report here.)
- Rigorous Training – only one out of 20 applicants is accepted into the training program, and only 200 advisors in the US and Canada have met the rigorous requirements to be a Bank On Yourself Authorized Advisor. Advisors must take continuing education and demonstrate their competency with the concept. They also act as your coach, showing you ways to use your policy to maximize the growth throughout your lifetime.
- Proper Policy Design – if your policy isn’t designed properly, it could grow much more slowly, lose the tax advantages, or both. Bank On Yourself Authorized Advisors work under the guidance of policy design experts who have each designed thousands of these policies, to ensure your policy is designed correctly.
- Best Insurance Companies – only a handful of life insurance companies sell policies that have all the features required to maximize the power of this concept. When you work with a Bank On Yourself Authorized Advisor, they will recommend only companies that are among the financially strongest, and that have all features required.
- Bank On Yourself is the gold standard and enjoys an industry-leading track record of success.
5. What happens if I want to drop my policy?
Bank On Yourself-type policies give you great flexibility should you hit a rocky patch financially. You can stop paying the additional optional premium (Paid Up Additions Rider), you can use the policy’s cash value and dividends to pay the base premium, or you can take the policy “paid up,” which leaves the death benefit intact, but requires no further premiums to be paid.
If you terminate a policy, you would receive the amount of your cash value, less any outstanding loans and interest due.
If you are considering terminating a policy, speak with your advisor first about other options available to you.
6. What happens when I die?
Your heirs and loved ones (or, if you prefer, a church or charity) will receive the death benefit (less any outstanding loans and interest due), income tax free.
7. This sounds great… Why isn’t everyone doing it?
The easy answer? Bank On Yourself takes a little patience and discipline. It’s not a get-rich-quick scheme. Many people put far too much focus on chasing higher rates of return, and the results have been disastrous: Almost half of all Boomers aren’t expected to have enough money to cover even basic living expenses in retirement.
If you thrive on the adrenalin rush of roller-coaster ups and downs in your financial plan, or you’re looking for a financial “magic pill,” Bank On Yourself probably isn’t for you.
But if you’re looking for a proven, essentially risk-free plan to grow your wealth, and become your own financing source, while still leaving your heirs a sizable inheritance, Bank On Yourself is something you should consider.
Hopefully, you are intrigued enough to dig deeper into the great financial opportunities Bank on Yourself offers. Please accept a free, no-strings-attached Bank On Yourself dividend paying whole life insurance analysis as our gift to you.