What is Bank On Yourself®?

What is Bank On Yourself?

Bank on Yourself®  is the creation of Pam Yellen and is a process of using whole life insurance as a means to finance major purchases.  The claims made by Bank on Yourself® suggest that following the program will unlock hidden wealth secrets employed by savvy investors and business people. But does it work? We get …

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Indexed Universal Life: Market Neutral?

Indexed Universal Life Insurance Market Neutral

The other day I was part of a conversation with another agent about Indexed Universal Life.  The conversation was more of a challenge to my position that, like whole life insurance and current assumption universal life insurance, indexed universal life deserves just as much credit for being market neutral and falling into the alternative investment category …

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102 Trust Me…Just Focus on the Future

102 Trust Me…Just Focus on the Future

What's the problem with binoculars?  They perform a great duty in that they make things that are off in the distance become very clear to us.

The problem is that they isolate your perspective so much that you often miss what's right in front of you.  What's that got to do with anything you ask?

Well, today we're talking about how some life insurance agents, financial advisors, financial planners et. al. like to have you focus too narrowly on the long term. You shouldn't forget that the short term can have value as well.  Often times we are able to glean some valuable information form short term data.

In our world, agents love to emphasize that life insurance is a long term “investment” and they do this to try and remove as much attention as humanly possible from the fact that most whole life and universal life policies (when sold the traditional way) have zero cash in the first year (and sometimes the first two years).

If we design them correctly, we can create cash surrender value in year one with almost all policies. That being said universal life insurance  can be challenging at times.

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Is Whole Life Insurance like a Roth IRA?

whole life insurance roth IRAI want to start today’s discussion about whole life insurance and Roth IRA’s by noting that I had mixed feelings about writing this post. This one was motivated by requests to retort a blog post that showed up on a certain ER Doc turned part-time financial guru’s web site when he posted several reasons why whole life insurance and Roth IRA’s are not similar.

Here’s the problem for those who have made the request that I “take him on.” I don’t disagree with him.

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Life Insurance Cash Values, You Can’t take it with you

cash value life insuranceThere’s no doubt a number of people have made arguments against the ownership of cash value life insurance. You don't have to spend a lot much time surfing ye olde' interwebs to find such evidence.

Too many of these arguments are propped up on misinterpretations of the various products that exist–heck even the agents themselves can’t come to a consensus on how things work.

But one of my favorite literal interpretations about cash value life insurance that's used to substantiate the opposition is the fact that life insurance companies keep the cash in your life insurance policy when you die. “You don’t get the cash when you die, the insurance company keeps it!”

They exclaim with sharp disapproval. And most of you who don’t know any better fall for it.

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Why Life Insurance Works so well for Retirement Income

life insurance protects retirement incomeLife Insurance used to generate retirement income is a slightly more advanced subject within the world of life insurance and financial planning. The stock jockeys hate it, and the life insurance agents love it. No surprise there.

But is there something that life insurance brings to the table that is truly special? Or are you better off betting your chips on the market to bring you through a prosperous retirement? The market, and other investments heralded by your broker or investment advisor seem to be the weapon of choice for generating retirement income, or at least that’s what your CFP says. But maybe, just maybe there is something we’ve neglected to think about here. And perhaps it required a little more grey matter flexing than parroting what the compliance approved brochure said about retirement income planning.

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Top Whole Life Insurance Companies for Building Cash Value

Whole Life Insurance

It’s no big secret that we think whole life insurance is pretty awesome. Hopefully, most of you realized we were just being cheeky on our podcast last week when we declared that it sucked (though we don’t think it’s the answer to all the world’s problems).

We often receive questions regarding which company has the best whole life products. After giving this subject careful consideration, the time has come for us to make an official list. You’re very welcome!

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