Are you looking for a way to secure your financial future and achieve your retirement goals? If so, you may want to consider leveraging Other People's Money (OPM) to fund a cash value life insurance policy.
A cash value life insurance policy is a type of permanent life insurance that combines death benefit protection with the opportunity to build cash value over time. As you pay premiums (Insurance industry term meaning "contribution"), a portion goes towards the death benefit and the rest accumulates in a cash balance account that earns interest. This allows you to not only protect your loved ones with a tax-free death benefit, but you can use the cash value while living to supplement your retirement income with tax-free income.
So how does OPM fit into the equation? By using OPM to fund your cash value life insurance policy, you can potentially achieve double digit returns and supercharge your retirement savings. This is done by taking out a low interest loan against the cash value of your policy, which is then placed back into the life insurance contract. Over the years, the value of your policy increases, which also provides a larger death benefit and more cash value to use 100% Tax-Free!
But isn't taking on debt risky? While it's true that there is always some level of risk involved, the earned rate of Whole Life insurance contracts have always been higher than the loan rate over the last 40 years. This means that the cash value of your policy has always grown faster than the interest on the loan, providing a net benefit. The best part? You never have to pay the loans back. The death benefit from your policy will pay off all loans, leaving a large tax-free inheritance for your heirs. Of course, we cannot guarantee this will be the case for the next 40 years. If the interest rate rises above the earn rate, the difference will need to be made out of pocket.
The safety and stability of life insurance as a financial tool is demonstrated by the fact that some of the largest banks in the USA own tens of billions in bank-owned life insurance (BOLI). These institutions understand the value of protecting their assets and ensuring a secure financial future through life insurance. And when it comes to choosing a life insurance provider, it's important to select a reputable, A+ rated insurance company. At Lion's Share Wealth, we work with more than 20 A+ rated insurance companies to ensure you receive the best program. This ensures that your insurance policy is backed by a financially stable and reliable company.
It's no secret banks like to make money, and earn as much money as they can. Banks diversify into many financial tools to grow.
This chart illustrates two assets owned by the largest banks in the United States: Life Insurance and Real Estate (not including corporate offices and branches). It may come as a shock these banks own over 100x more Life Insurance than they do real estate.
When you consider the safety of life insurance, and the tax-free benefits, it's easy to see why banks own as much insurance as they can.
This begs the question....would you rather do what the largest banks say to do, or would you rather do what the largets banks do?
Schedule a free consultation with us today to determine if Other People’s Money (OPM) is a suitable strategy for you.