It’s hard to break away from the conventional financial wisdom that’s been pumped into the collective fiscal mind of the United States since the 1980’s. If you have purchased or thought about purchasing life insurance, you have likely been given inaccurate advice. You have been told that term life insurance is your best choice because permanent life insurance is expensive and you can invest the difference. Conversely, you have been told that whole life insurance is a bad use of your money because it has high premiums. Perhaps you have never thought of whole life insurance as a vehicle for savings, growth, and security before. As we continue the “Expanding Wisdom” series, it’s important that readers understand exactly what whole life insurance is and how it can work for you.
What is Whole Life Insurance?
Whole life insurance policies are exactly what they sound like. A whole life insurance policy does not expire like term life insurance does after a certain period of designated time. Instead, as long as the premiums are paid, a whole life insurance policy will cover you for your whole life. Whole life insurance comes with a lot of guarantees: the premium costs, the death benefit, and the cash value. That’s the clear advantage to a whole life insurance policy. You have a built-in cash value that grows over time that you can use for major purchases. And at the end of your tenure here on earth, your family and loved ones will be covered by the death benefit. All of that sounds pretty great, but what if it got better?
Isn’t Term Life Insurance Cheaper?
People lament over the purchase of whole life policies because the premiums are higher than they are on a term life insurance policy. Strategists try to advise people to take the savings that they would have put into a permanent life insurance policy and invest it into traditional methods for growth. However, with the volatility of the market at an all time high since the great recession and mortgage rates beginning to rise and stretch the dollars in people’s pockets, what sound investment strategy would you use? Term also has an expiration date, when it will no longer cover all the people you love in the event of your death. What happens if you outlive your term life insurance and have to scramble as an elderly person to secure your family and your wealth before you graduate from this life? A small initial cost could actually be more detrimental to you than a choice to protect your wealth and legacy with permanent insurance.
However, Factum Financial Wealth Strategists also know how to take the initial costs to you for a whole life insurance policy and make it work for you so you can “be your own banker” and increase your cash flow without relying on Wall Street. And we’re eager to share how to do it.
How Can I Use Whole Life Insurance Now?
Whole life insurance policies are designed to carry a cash value, which you won’t find in a term life insurance policy. Any person that purchases whole life insurance will get this benefit. However, only a specifically designed whole life insurance policy can give you the freedom to implement the Infinite Banking Concept and “bank on yourself” instead of giving your money to the guys on Wall Street. By keeping your wealth away from Wall Street and conventional planning, you keep all the control of your money supply. These policies are designed to grow your assets exponentially over time, giving you the freedom to rely less and less on traditional banking structures and rely on yourself. Whole life insurance offers the only true compounding account that money can buy. Furthermore, unlike a qualified plan such as a 401k or IRA, the government won’t get to extract massive sums in the form of taxes from you for using your insurance cash benefit. As you pass on from this life, these massive gains can be passed on and protected in the same way to your loved ones.
At Factum Financial, we believe in helping people skip out on the broken financial system that everyone else wastes their money on and “become their own banker.” We work with mutually owned life insurance companies to set people up with specifically designed whole life insurance policies that build cash value and protect their wealth. If you’re ready to stop relying on conventional financial wisdom, contact Factum Financial today.
For more financial wisdom, follow this link to read the last blog.