Can you “Bank” on Universal Life Insurance?

Can you “Bank” on Universal Life Insurance

Bank on Yourself® and the Infinite Banking Concept® are well known selling systems that promote whole life insurance, but can we apply the secret sauce of these ideas to universal life insurance as well as whole life insurance?

The purests (i.e. those with a vested interest in promoting whole life insurance) would tell you know. But not one to avoid a fight, I’m going to suggest they may be lying to you.

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Dividends The Power Behind Recapturing Lost Opportunity

Dividends The Power Behind Recapturing Lost Opportunity

Here's something you wouldn't expect to find written around here: Whole life insurance (at it's core) kind of sucks.  Sure everything is guaranteed, and to some people and in some applications those guarantees are vitally important.  But the thing that drives whole life insurance to the level that makes it an attractive cash accumulation tool for us is what insurance company refer to as the ability to participate in the sharing of divisible surplus, aka dividends.

To be somewhat bold, non-participating whole life insurance is horrendously boring, and probably not worth your time (unless your in your 60's or older and just looking for $5-10k for final expense costs when you die, and if you think that's all it's going to cost, you might want to think again).

The key element that takes Whole Life insurance to the next level is the payment of dividends (participating whole life insurance).  Dividends not only supply your policy with loads of extra cash above and beyond the guaranteed cash the insurance company promises you'll have if you pay your premiums, but they also give you the ability to continue to earn money on your money even when you've taken the money out to spend it.

Earlier in the week we declared PUA's the magic behind Cash Value life insurance.  If PUA's are the magic, dividends are the mana that grant them their magic.

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