How Complex Is Dividend-Paying Whole Life Insurance?

Some financial advisors say whole life insurance is complicated, and that “you should never invest in something you don’t understand.” … Then they try to sell you stocks, bonds, mutual funds, and EFTs that most laypeople can only begin to truly grasp!

Dividend-paying whole life insurance is so simple an average 10-year-old can understand the concept in 10 minutes. We’ll prove it to you now …

The Simplicity of Dividend-Paying Whole Life Insurance

The concept behind a dividend-paying whole life insurance policy is extremely simple. It’s based on five easy-to-understand ideas:

1. Your Risk Is Minimized by the “Pooled Risk” Approach of Insurance

This timeless concept is at the foundation of all forms of insurance. In its simplest form, policy owners pay an insurance company a relatively small sum of money in advance. This is called a “premium.” In exchange, they are covered for a potentially much large expense later. In this case, they receive an agreed-upon amount to cover the costs and loss of income related to the death of the insured, which is called the “death benefit.”

2. You’re Guaranteed to Have “Level-for-Life” Premiums with a Whole Life Insurance Policy

The insurance company realizes that there’s a slight chance that an insured individual might pass away after just one premium payment is paid.

That risk is very slim, but the flip side of the coin is that the older you get, the greater your chance of dying within the coming year. Nevertheless, a whole life insurance policy is designed to last your whole life – regardless of how long you live.

Term life insurance deals with this by raising the premium periodically to cover the company’s ever-increasing risk. This can ultimately make the policy so expensive that the policy owner is unable to pay for it, and all too often the coverage of a term life insurance policy ends without any death benefit being paid at all.

Many people have observed that paying the premium for a policy for years and then not receiving any benefit makes that term life insurance policy extremely expensive.

Whole life insurance takes a different approach. The insurance company knows how much premium it will need to receive for your policy, assuming you live an average lifetime, and it spreads that amount out evenly. Thus, your premiums are guaranteed never to go up.

And you don’t have to pay extra for this guarantee.

In fact, you will never receive a letter from the insurance company that issued your whole life insurance policy that says, “We are experiencing increased costs, and we will be passing those additional costs on to you. Your new (increased) costs will be …” That is guaranteed never to happen – at least not with a whole life insurance policy.

3. The Cash Value of Your Whole Life Insurance Policy Is Guaranteed to Grow with “Every-Year Consistency”

A portion of each whole life insurance premium payment is automatically credited to a savings component (called the “cash value”) of the policy. This cash value grows each year by a pre-set and guaranteed amount. Having access to this cash value – during your lifetime – is just one of the living benefits of your whole life insurance policy.

You will know the minimum guaranteed amount of your cash value account at any time in the future. These amounts (guaranteed in writing, by the way) are all listed in a chart your insurance advisor will give you before you decide to purchase the policy.

4. Dividends Give Your Whole Life Policy “Shot-in-the-Arm” Growth as They’re Paid

If the insurance company you purchase a policy from is owned by stockholders, then the stockholders receive the profits the company earns.

However, if your company is in essence owned by the policy owners (these companies are called participating or mutual companies), you share in the profits. The profits paid to you are called dividends.

Dividends are not guaranteed, but … some participating companies have paid dividends consistently every year for over 100 years – even during the Great Depression. These are the companies Bank On Yourself Authorized Advisors recommend.

Dividends are great! And even though they’re not guaranteed, every single Bank On Yourself-type life insurance policy ever written by a Bank On Yourself Authorized Advisor has paid dividends every year.

You could take those dividends in cash and spend them – and that makes perfect sense when you’re taking income from your Bank On Yourself-type life insurance policy in retirement.

But aside from that, savvy policy owners tell the insurance company to use the dividends to purchase additional coverage. (Hey, it’s more death benefit without a penny more out of your pocket!)

And when your death benefit grows, your cash value grows, too, in the most efficient way possible.

5. Whole Life Insurance Policies Are Chock Full of Guarantees to Protect You

A dividend-paying whole life insurance policy comes with guarantees that cover every component of the policy, except the payment of dividends (see above). And the insurance company is required by law to keep enough reserves on hand to back up those guarantees for every single whole life policy it issues.

  • Your coverage is guaranteed for life. It cannot be cancelled (as long as premiums are paid, of course. And remember, your premiums won’t go up!)
  • The company guarantees that the death benefit will never decrease
  • Your cash value is guaranteed to increase each year, and each year’s increase is “locked in.” It’s not subject in any way to market risk
  • If you need cash for any purpose, you are guaranteed the ability to borrow against your cash value, at competitive rates – and you can recapture that interest back into your policy as you pay back your loans. You don’t have to fill out a loan application, and your request cannot be turned down
  • You’ll have guaranteed income tax-deferred growth of your cash value every year, and you can take tax-free retirement income, under current tax law
  • The policy’s guaranteed death benefit will be paid income tax-free to the beneficiaries, under current tax law

All forms of life insurance have some guarantees, but only whole life insurance gives you all those guarantees

In addition, with a whole life insurance policy, the insurance company assumes the risk of poor investment performance. With every other form of permanent life insurance, you – the policy owner – assume that risk. And when you assume that risk, it means you’re agreeing that if the insurance company’s investments don’t pay off as well as planned – or if their costs are higher than they expected – you will make up your share of the difference – out of your own pocket!

Get Your FREE Report!

Get instant access to the FREE 18-page Special Report that reveals how super-charged dividend paying whole life insurance lets you bypass Wall Street, fire your banker, and take control of your financial future.

How to Find out More About Bank On Yourself-Type Dividend-Paying Whole Life Insurance Policies

Get Your FREE Report!

Get instant access to the FREE 18-page Special Report that reveals how super-charged dividend paying whole life insurance lets you bypass Wall Street, fire your banker, and take control of your financial future.

In this article, we’ve shown you the five simple concepts on which a dividend-paying whole life insurance policy is based. We’ve also reviewed the guarantees the insurance company makes to you when you decide to purchase a whole life insurance policy.

It’s really that simple. … Of course, if you’re someone who really wants to dig deeper, there is more you can learn. For example …

If you’d like to learn even more about dividend-paying whole life insurance, take a look at the comprehensive online Consumer Guide to Life Insurance. You’re welcome to browse. We prepared the Consumer Guide to Life Insurance just for inquisitive learners like you!

Learn How Super-Charged Dividend-Paying Whole Life Insurance Can Help You Reach Your Financial Goals and Dreams – Without Taking Any Unnecessary Risks

If you want to discover why Bank On Yourself-type policies outperform other types of whole life insurance policies, download our FREE Special Report, 5 Simple Steps to Bypass Wall Street, Beat the Banks at Their Own Game and Take Control of Your Financial Future.

While most term life insurance policies are relatively similar to one another, dividend-paying whole life insurance policies can be customized to meet very specific needs and objectives – your specific needs and objectives.

And that’s why your next step is to find out specifically what a Bank On Yourself-type whole life insurance policy can do for you and those you care about.

To learn how a custom-tailored Bank On Yourself program can help you reach your financial goals (there’s no cost or obligation), request your free Analysis. You’ll be referred to a Bank on Yourself Authorized Advisor – a life insurance agent with advanced training in this concept – who can answer all your questions and, when you’re ready, get things moving.

Get Financially Naked With Your Partner to Avoid Relationship Mistakes

Do you remember the first time you got naked with your beloved?

Along with the passion of the moment, if you’re like most of us, you were probably a bit self-conscious. After all, for the first time, you may have had had to reveal that paunch you’d been hiding, those patches of cellulite or that outie belly button you’ve hated since the third grade.

But because you overcame those concerns and let yourself get naked – well, I don’t need to remind you what happened next!

The point is, when you allow yourself to get financially naked with your partner, amazing things can happen. You not only have a better understanding of one another, but you’ll also work better as a team to achieve your goals and tackle your problems.

It turns out that being clear and open with each other about financial issues is one of the most positive things you can do to ensure a “happily ever after.”

Couples May Argue About Sex, Kids and In-Laws, but It’s Their Arguments About Money that Best Predict Whether or Not They’re Headed for Divorce Court…

[Read more…] “Get Financially Naked With Your Partner to Avoid Relationship Mistakes”

The Most Important Lesson Learned from the Government Shutdown: Americans’ Finances are Fragile

The longest U.S. government shutdown in history laid bare an uncomfortable truth: Americans aren’t saving enough and the majority of us have no rainy-day fund to protect us when the inevitable you-know-what hits the fan.

More than 70% (!) of all types of employees at all income levels surveyed live paycheck to paycheck and said they’d have difficulty meeting their financial obligations if their paycheck were delayed for just one week! That’s according to the 2018 “Getting Paid in America” Survey by the American Payroll Association.

This explains why, after missing just one or two paychecks, we heard so many heart-breaking stories from government workers who weren’t being paid or were furloughed. For example… [Read more…] “The Most Important Lesson Learned from the Government Shutdown: Americans’ Finances are Fragile”

How Much Money Do You Need to Save for Retirement?

People need to save between 10% and 17% of their income if they plan to retire at 65 but are putting away only 6-8% of their income, according to a new study by the Stanford Center on Longevity. That’s only half of what they should be saving.

What percent of your household income are you saving? It’s important to be brutally honest with yourself because a shortfall of the magnitude most Americans will experience means more than just not being able to live the retirement lifestyle you dreamed of. It may mean…

  • Having to choose between putting food on the table and the medical care you need
  • Not being able to afford to pay for heating and air conditioning
  • Having to rely on the charity of your children
  • Foregoing travel and even life’s little luxuries

I doubt you worked hard all your life so that you can scrimp and sacrifice just to get by in retirement.

Fully 60% of U.S. households are at risk of not having enough money to make ends meet in retirementeven if they cut back to spending just 75% of pre-retirement levels – according to a 2018 study from the Center for Retirement Research.

The Rule of 25 for Determining How Much You’ll Need to Have Saved

[Read more…] “How Much Money Do You Need to Save for Retirement?”

Reviews for Saving for College Using the Bank On Yourself Method

When you think about saving for your children’s college tuition, what savings vehicle comes to mind?

Families often use traditional investment and savings accounts, 529 College Savings Plans, UGMAs (Uniform Gift to Minors Accounts), and UTMAs (Uniform Transfers to Minors Act).

But there’s a big problem there. Who’s going to guarantee you won’t lose your money – and your kid’s chance for a great education – in a stock market crash?


Absolutely nobody. Not your broker, certainly. (Try asking him if he’ll guarantee your stock market investment. Get ready to be laughed at.)

Not Uncle Sam. And not the college. Nobody’s going to guarantee that your money in the market will grow. And nobody’s going to guarantee you won’t lose it in the next market crash.

And that’s the thing. This is your kid’s future you’re gambling with, for Pete’s sake. This is money you can’t afford to lose!

And if you can’t afford to lose it, you can’t afford to risk it. Because “Risk = possibility of loss.”

If you can’t afford to lose it, you can’t afford to risk it.”

That’s why the Bank On Yourself strategy for saving for college is becoming more and more popular. [Read more…] “Reviews for Saving for College Using the Bank On Yourself Method”

October 2018 Was Among the Most Volatile Month for Stocks in 118 Years

October was one of the most volatile months for the Dow since 1900. Back then, we were hopping on the first electric buses in New York City and enjoying a new kind of sandwich called a “hamburger” in New Haven. And, we were piling onto an early “Loop the Loop” roller coaster on Wall Street.

Fast forward to October 2018… and enter the Zero-G Inversion Coaster. The Dow fell by over 1,000 points in two days. The S&P 500 dipped in and out of correction multiple times. The Nasdaq plummeted 700 points mid-month, soared over 300 points the next week, and then tumbled back down over 500 points toward month-end. It comes as no surprise that the Fear Index also hit a 3-month high.

It wasn’t Halloween that spooked the markets last month…

Investors had plenty to fear with trade wars, tariffs, rate hikes, Fed policy, underwhelming earnings, slumping housing data, and political partisanship run wild. And as the sugar high of tax cuts, low interest rates and low inflation wears off, there’s a pervading sense that we’ve reached some sort of flashpoint.

What keeps economists up at night? One very sobering question:

What if This Economy is “as Good as It Gets”?

[Read more…] “October 2018 Was Among the Most Volatile Month for Stocks in 118 Years”

Setting the Record Straight on What Bank On Yourself Is – and Isn’t

There are a lot of misconceptions about the meaning of Bank On Yourself. Some folks think it’s just glorified whole life insurance. Others think Bank On Yourself is merely the name of a book.

So, the Bank On Yourself team has created two separate articles. The first explains what Bank On Yourself is, and the second explains what it is not.

What Bank On Yourself Is

Our article on What Is Bank On Yourself? explains that Bank On Yourself is a safe wealth-building strategy – one that puts you in charge, by showing you how to fire your banker, bypass Wall Street, and take back control of your finances. That’s the meaning of Bank On Yourself in a nutshell.

But the article also discusses the benefits of the Bank On Yourself concept. We explain that Bank On Yourself is also the name of our company, and the words “Bank On Yourself” are in the titles of two New York Times best-selling books by Pamela Yellen.

What Bank On Yourself Is NOT

[Read more…] “Setting the Record Straight on What Bank On Yourself Is – and Isn’t”

3 Key Ways You’re Underestimating Your Retirement Costs

Take a moment and think about how much savings you’ll need in retirement.

Write that number down.

Now here’s a reality check: That number is probably low.

Not because of your math skills, but because most people underestimate what their costs will be in three critical ways.

A new study found that 37% of retirees say their overall retirement cost estimates turned out to be low.

And when it comes to healthcare, 44% of retirees said they’re facing higherx costs than they expected. (Source: 2018 Retirement Confidence Survey by Employee Benefit Research Institute)

Three Ways You’re Probably Underestimating Your Retirement Expenses…

#1. Assuming you’ll spend less in retirement than when working

[Read more…] “3 Key Ways You’re Underestimating Your Retirement Costs”

Is There A Good Alternative for Retirement Savings? See What These Bank On Yourself Reviews Say

Navy Commander … physician … salesman … retired NFL record-holder … what do they all have in common?

They are all happily using the Bank On Yourself safe wealth-building method to either beef up or even serve as the foundation of their retirement savings plans. And these are just four of the hundreds of thousands of satisfied Bank On Yourselfers.

The Bank On Yourself strategy uses specially-designed dividend-paying whole life insurance to create a secure savings plan. The policies grow by a guaranteed and pre-set amount every year. The growth is exponential, meaning it gets more efficient every year the policy is held, providing peak growth at the time many people need it most – retirement.

And what’s not to like about Bank On Yourself? Guaranteed growth … accounts that never go down in value … incomparable tax benefits … and no government restrictions on putting money in or taking money out. Read on for the straight truth from actual Bank On Yourself clients …

Bank On Yourself Reviews, in Their Own Words

Here are the stories of Bob Chambers (Navy commander), Dr. Bryan Kuns (physician), Lowell Warner (sales professional), and Glyn Milburn (retired football star) …

Bank On Yourself Retirement Planning Is About More Than Money … It’s About Financial Independence … Lifestyle … and Legacy

[Read more…] “Is There A Good Alternative for Retirement Savings? See What These Bank On Yourself Reviews Say”

More Reviews About Bank On Yourself Changing Lives!

The Bank On Yourself strategy is much more than just another way to save for retirement. Think about it: If you’re firing your banker, bypassing Wall Street, and taking back control of your own financial future – you’re literally changing your life!

You can see Bank On Yourself video reviews on YouTube. Bank On Yourself really does continue to change lives, as folks of all ages and incomes have discovered.

More than half a million families and businesses use the Bank On Yourself strategy – based on using super-charged dividend-paying whole life insurance – to reach their short-term and long-term financial goals, without taking any unnecessary risk. Read what real people are saying about this strategy in these Bank On Yourself reviews.

Drew Wilder Reviews Bank On Yourself

Drew Wilder’s family has been using the Bank On Yourself safe wealth-building strategy since 2006. In this review of the Bank On Yourself method, Drew shares how he’s relying on Bank On Yourself as a safe way to build financial stability … providing a source of funds for needs ranging from home repair to paying for college. See why Drew trusts dividend-paying whole life insurance to safely grow his nest egg.

Phil and Marge Owens Recommend Bank On Yourself

[Read more…] “More Reviews About Bank On Yourself Changing Lives!”