Life - Term, Whole & FIUL

The 7 Biggest Lies You'll Hear About Life Insurance -

And The Truth Which Will Set You Free


1)  YOU DON'T HAVE ANY DEPENDENTS SO YOU DON'T NEED LIFE INSURANCE

Everybody needs at least enough life insurance to pay personal debts and final expenses.  If you are not insured you could leave your family or executor dealing with unpaid expenses.  Besides, life insurance is a great way for even lower income singles to leave a legacy to their alma mater, favorite charity or endowment


2) ALL THE INSURANCE YOU NEED IS TWICE YOUR INCOME

The time where life insurance coverage was based entirely upon your income has been history for a long time.  Cash flow is a much more critical consideration and cash flow becomes even more critical when you are no longer there to help provide it.  Paying off your mortgage, medical expenses, future needs of your children, and other liability and debts can quickly consume two years of your annual income.  Life insurance is simply the most cost effective way to prepare for future needs, both planned and unplanned possibilities


3)  TERM INSURANCE IS ALL YOU'LL EVER NEED

Term insurance is important but not cost effective in your later years.  Just because you might possibly have more equity in later years doesn't mean that the wisest thing to do is drop your life insurance coverage.  Wealthy people think both.  Think like the wealthy


4)  YOUR GROUP LIFE INSURANCE POLICY IS ALL YOU'LL EVER NEED

Cash flow is critical to consider.  If you lose your job, retire or switch jobs, you may not be able to afford the premiums required to convert that group policy to an individual policy.  Then you are faced with insurability issues and premium costs that are higher than you may be able to afford


5) BUY TERM AND INVEST THE DIFFERENCE, UNTIL YOU HAVE LIQUID ASSETS OF AT LEAST $1 MILLION

This lie is a selling technique used by many who sell cheap term insurance and ignore the fact that over your entire life time

Whole life insurance will typically be less costly to you than buying term and investing the difference

Too many people never accumulate that $1 million and when they reach age 65 they rarely can afford to pay the ever increasing cost of their term insurance (The Dave Ramsey Factor)


6)  UNIVERSAL LIFE PRODUCTS ARE ALWAYS BETTER FOR YOU TO OWN THAN PARTICIPATING WHOLE LIFE PRODUCTS

There are many different kinds of Universal life insurance products and each of them creates risks which you as the owner assume when you purchase them

Participating Whole life insurance products are guaranteed products which also have risks associate with them, but these risks are assumed by the insurance company and replaced with guarantees backed up by the company's performance.  

Guarantees are better than risks and therefore Universal life products can never be declared better than Whole life products


7) IF YOU ARE NOT THE BREAD WINNER IN YOUR FAMILY, YOU DON'T NEED LIFE INSURANCE

Foolishness!  Everybody has a human life value which can never be replaced by any amount of money! At the same time money can help ease the financial loss that will occur upon the death of someone that produced value in your life.  Children, grandchildren, parents, spouses, key employees, business partners and people you have loaned money to, all need to be insured in order to help you replace at least some of the value which they are contributing to your life today, if they were lost

IRA/401k Retirement Rescues

(Get the IRS out of your back pocket)

  • Take back control of this ticking tax bomb and create a tax-free environment not only for you, but also for your family. Eliminate the future taxation of money using IRS Code 7702
  • Whatever Rate of Return you earned on your IRA money will easily be cancelled out by the Taxes paid to the government, and taxes do not go down, they typically go up
  • Move your money from Accounts that are forever-taxed to accounts that are never-taxed AND NEVER LOSE YOUR PRINCIPAL AGAIN, by being in the MARKET
  • Use the Cash Value of your Life Insurance into a Tax-Free Savings Vehicle to finance your Living Needs (i.e. self-insure yourself vs. buying Long-Term Insurance and leverage it for other financial needs)
  • Remove the Tax & Stock Market Risk & NEVER LOSE YOUR PRINCIPAL AGAIN
  • Increase the Amount you can contribute over tax-deferred accounts
Protect your retirement from being decimated by taxes. Listen to well-known Ed Slott, published CPA


FIXED INDEXED UNIVERSAL LIFE INSURANCE

(Gets the IRS out of your back pocket)

Tax rates are at an all-time low:

Protect yourself from Liquidity Issues, Tax Risk, Investment and Market Risk with a Tax-Free Retirement and Estate Protection with a Death Benefit. Cash Value Life Insurance has Living Benefits to fuel your retirement and leverage it for financial needs.

  • You insure your house, your car, your health, your life...
  • Why do you not insure your retirement?
  • Ask us how to grow your money WITHOUT losing your Principal (your money).



Diversify your retirement dollars: tax-free dollars

Roth IRAs offer Tax-Free Dollars, BUT limit the Annual Contribution.


If you are playing catch-up with your Retirement Dollars, MOST PEOPLE FAIL to consider LIFE INSURANCE as an place to put Retirement Dollars.


Create a Retirement Account Better than the GOVT. 401k/IRA Option

  • Create a Retirement account that grows  on INDEXES without the RISK of the Stock Market
  • Never lose your Principal (Indexes have Floor Rates Established)
  • Borrow from the Cash Value from your Account -- Become Debt Tree
  • AVOID RMDs (Required Minimum Distributions required by Govt on 401k/IRA so they can collect their TAXES on the BIGGEST SUM)
  • Create a Retirement with a TAX-FREE Death Benefit
  • DRAW down the Cash Value of Life Insurance for your Retirement OR Leave the Cash Value ALONE and CREATE Generational WEALTH for your FAMILY




ILLUSTRATION: 16 YEARS TO FEED, 18 YEARS OF DISTRIBUTION

Create Retirement Account with a DEATH BENEFIT that can be GREATER than  the CASH VALUE to PROTECT YOUR FAMILY -- ALL-IN-ONE ACCOUNT

  • Year 16 -- Death Benefit $1,020,000 AND Cash Value $573,344 




Life Insurance (Whole) For Individuals 

  • Whole life provides a good source of tax-free funds for big-ticket items that could put a dent in a tight retirement budget.
  • Create Cash Value and Borrowing capabilities for Individuals and Businesses.
  • Use the Cash Value and Death Benefit to supplement Retirement needs.
  • Set aside Assets you want to pass on to your Heirs Tax-Free and become Debt-Free, enjoy Financial Freedom.
  • Become Debt-Free in 9 years or less.

Decrease costs due to Employee Wage Garnishments, Child Support and Bankruptcies. Help your Employees to fund their own Retirements by providing Financial Education and reducing the costs of creating a 401k retirement fund.

Business Owners: Finance your Business Expenses and Fund your Retirement fund at the same time (Cost Recovery Strategy)

  • Recover part or all of monies spent on targeted expenses while still recording them as an expense to the business
  • Recover the lost opportunity costs associated with these expenses
  • Apply a banking model to your business
  • Use the banking model to become your own financing source for future expenditures
  • Get money out of the business on a favorable basis to help supplement retirement

What if you could learn to grow your money at double-digits?

Learn how to protect your retirement money from market crashes?

Borrow for a car, and make yourself richer? Grow your money tax-free?

Ask us we know how...

Your Family Bank utilizes both. It is a system that helps both individuals and businesses redirect money normally lost to debt, interest and taxes back into their circle of wealth, while at the same time ensuring that your dollar gains a positive rate of return every day.

So... Are you 100% sure you are going to have a great Retirement, or do you have some doubt?

Become Your Own Banker

  • Become Debt-Free (you need capital to fund it, and we'll help you find the money, build the bank and create the plan)
  • living benefits - stop paying the banks all the interest and use your retirement cash now to become debt-free
  • You can control your spending, debt, savings and taxation with the 10 Principles of Money Management while also accomplishing much more.
  • Having tax-free income at retirement
  • Financing all your automobiles and major purchases
  • Capturing the interest you are currently losing
  • Saving for college
  • Family Getaways
  • Medical and Dental Expenditures
  • Prevent Payment of Estate Taxes
  • Private Loans
  • Insurance – Health, Automobile, and so on
  • Create a Family Legacy that Passes to Each New Generation
  • Establish an emergency fund
  • PLUS you get a death benefit along with all the living benefits so you never need the bank again.
  • Create a Tax-Free Retirement (don't use an IRA or 401k again that just makes money for the government to tax).


What’s the difference between whole life and term?

Benefits: Whole life policies have a living benefit, and a tax-sheltered cash account that builds up inside. Clients don’t pay taxes on the gain each year, and that money can be used in retirement to supplement retirement planning. No such benefit is available with term insurance. Term insurance only has the actual life insurance coverage; there is nothing but a death benefit. In order for the benefit to be paid, somebody has to pass.

Buyers can also add riders to whole life policies, such as accelerated benefits riders, which enable someone who has a terminal illness to be able to access as much as two-thirds of the benefits while still alive. This is something that can’t be done with term insurance.

Dividends: A whole life product has dividends, and the dividends are paid out much like they would be to a stockholder of a company. Those dividends can be used to reduce the premium, or they can be used to build up the cash inside the policy and the face amount. Term life insurance has little or no dividends.



Life Insurance (Term)

  • The cheapest form of life insurance at an early age (term prices increase as you age)
  • RATES INCREASE Substantially as you get OLDER especially at 65-66 (that's when most people CANCEL and the Insurance company keeps your premium with no payout (death benefit)
  • Has death benefits for the term of the life insurance policy
  • Needs Analysis provided to determine amount to select
  • Policy amount can be limited to Income levels set by the Insurance company
  • WHEN THE TERM ENDS, if the Applicant has not died the Insurance company keeps your premium with no payout (death benefit

Life Insurance (Final Expense)

 Final expense insurance is designed to cover the bills that your loved ones will face after your death.


  • These costs will include medical bills and funeral expenses


  • Final expense insurance is also known as burial insurance


  • Unfortunately, even bare-bones funerals can cost thousands of dollars


  • It's Whole Life Insurance with cash value


  • Simplified and Guaranteed Issue -- for those who did not start a Life Insurance policy before age 66