Early Capitalization:
  • You don’t have to wait 7-10 years to break-even, let alone see a positive cash value.
Safe Asset to Position Your Money:
  • Many view  Cash Value Life Insurance as a fixed asset, even a bond alternative. A policy that is designed with a 10/90 split will produce strong cash values. This is especially true of the guaranteed values.  
Retirement Income:
  • Cash Value Life Insurance has been used to produce income for policyholders. Many corporations have practiced this with their executives as a means of creating a corporate retirement benefit.
Infinite Banking Concept:
  • The Infinite Banking Concept is a great tool that teaches one how to use a Whole Life Insurance Policy as a financing tool. The primary issue we encounter with those interested in cash value insurance as a result of IBC is the capitalization period.  Many are not willing to take a  -40% hit on their money in the first year and then wait seven years to see a positive cash value. A policy designed for maximum cash value provides more access to capital, allowing one to practice IBC to a greater degree… sooner rather than later.  
Tool to Wipe Out Debt: 
  • Debt-consolidation is always a popular topic. Cash Value Life Insurance, often paired with Velocity Banking, is a great means to clear high-interest debt. With that said, it is always beneficial to view the pros/cons to this strategy. No matter how well a policy is designed, we still have a cost in the early  years. In the early years, we have an insurance expenses AND a loan interest expense. Yes, using a policy to pay-off debt is effective over the long-haul but it is important to consider the early years.  And  remember that we have a cost to borrow, as interest accrues on policy loans.