Cash Value Life Insurance
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- čas přidán 10. 02. 2023
- Cash value life insurance is a type of permanent life insurance that combines a death benefit with a savings or investment component. When you pay your premiums, a portion goes towards the death benefit, which is paid out to your beneficiaries if you pass away. The rest goes into a cash value account that accumulates over time and earns interest. You can access the money in the cash value account while you are alive through loans or withdrawals.
One of the main advantages of cash value life insurance is that it provides both protection and a way to save for the future. The death benefit can provide financial security for your loved ones, while the cash value component can be used as a source of funds for various goals, such as saving for retirement, paying for education, or covering unexpected expenses.
There are different types of cash value life insurance, including whole life, universal life, and variable life. Each type has its own features and risks, so it's important to carefully consider your options and speak with a financial professional before deciding which one is right for you.
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Traditional life insurance only pays out if you die - that's really "death insurance", isn't it?
Modern Living Benefits life insurance policies also pay out while you're still alive if you get sick or injured... at no extra cost.
It's not more expensive, it's just more expansive.
The information contained in this video is not provided by a licensed attorney and it does not constitute legal advice. If you desire legal advice tailored to your specific estate planning needs, please consult a licensed attorney in your area.
The information contained in this video provides a general overview of different types of life insurance. Please contact your local life insurance agent to determine the best life insurance solutions for your specific financial and family needs.
However if you don’t pay it back with interest it comes out of your death benefit….. please give the full scenario and not mislead potential clients.
hard to fit the full scenario in 60 seconds. plus we'd never want you to take financial advice from a TikTok...
None of this is financial advice, it's purely education and awareness. We know people are smart enough to find their own answers and consult an agent when they're ready. But that's why it's so important to find an agent -- your agent will have the full answers for you.
However, you're correct, generally there is interest charged on your withdrawals, just like a bank would. But in this scenario, you are your own bank. And, that withdrawal is known as a participating loan, therefore the amount is not "subtracted" from your full cash value amount, meaning your full amount continues to earn interest.
For example, say you borrow $20,000 from $100,000 -- that interest you're paying on $20,000 might be 5%, and the interest you're making on the $100,000 might be 8%. Even if for some reason they're the same interest rates, when percentages are the same, the larger number wins. And you can choose to pay yourself back, or let the insurance company pay it for your when you die.
It doesn’t come out of your death benefit. Your cash value is added to your death benefit. If you use all your cash then you still have your initial death benefit. You’re acting like this clips purpose was to scam when it is not.
You sure if you borrow from your own money they don't charge me 6%-8% interest rate to pay to the insurance company?
Your concern is completely valid, and it's crucial to understand the terms when considering an IUL policy. Interest rates on loans against your policy can vary, and it's not uncommon to see rates in the range you mentioned.
However, it's essential to recognize that these rates are often credited back to the policy in various ways, depending on the structure of the IUL. In some cases, the interest charged on the loan might be less than the interest credited to your account, potentially resulting in a net gain.
Every policy can be different, and understanding the specific terms, costs, and potential benefits of borrowing against your policy requires a detailed look at the contract and your individual situation.
I'd be happy to discuss this further and provide more information tailored to your needs. Please feel free to reach out, and we can explore how an IUL might align with your financial goals.
That’s cap. Guaranteed return rates on a IUL are 1-4%. Plus you make it sound nice “borrow for business venture” as if you’re able to borrow from the life insurance death benefit but in reality you can only borrow on the cash available to you after the first 12 months (or longer) and at the small rates; that can be a small amount. You’re better off opening a CD if you want to save at such low rates; atleast in a CD your savings wont shrink at the price of the life insurance goes up and you remain to pay the same monthly premiums
You’re either
1. A bad person and that is why you’re selling a product that’s overly priced with little to no benefits
Or
2. Don’t know any better (thus you shouldn’t be in the industry
Do not listen to this video. She’s leaving out important pieces of literally every point that is selling you. And I say that as a person who has been researching dividend paying whole life insurance policies regularly as I prep myself to dive in. I can tell just from this reel that she’d set you up for failure.
I would love that. I have a family of 5 and need to make changes for the future. I don’t make that much money but I want to start now.
That's great to hear! Especially with a family of 5. Mary (featured in this video) is would love to help you out. You may contact her here - geni.us/maryglynnfisher
You don’t want their help. Trust me😂
@@AllianceGroupLifeI would love to know more about this
@@AllianceGroupLifescam
Next you're going to tell me that there's these things called investment accounts that I can put money into every month and they build compounding interest that I can draw out and spend later. Ever hear of them?
Yes it would be wise to put your money in an investment account. When you take your money, you just take your money; no paying back with interest💯💯💯
@@naysperspectivefit8119 Investment accounts are a perfect vehicle to have an area of aggressive dollars that can grow by 8-11%. They should be positioned in a long term financial plan.However, for most people, the growth on that is taxed by 15-20% for capital gains and should not be taken out during market corrections to avoid locking in losses. Thats why cash values are a useful tool, when you take a loan out, the cash never leaves the policy and is growing by 5.5%..if utilizing a good mutual company. You use this money, to generate a bigger profit however you decide to so, (maybe it is buying in during the market correction, real estate, a business) then you pay it back on your own terms and most of it goes right back into your policy. Once its paid back you still have more profit than what you pulled out. It could save you for an emergency in a tight situation, let your investments grow, because they have more ror. Plus the death benefit grows with the cash and you are able to leave behind a legacy to the people you care about.
You can take a loan on a 401k or many other employer sponsored retirement plans too 🤔 I don't understand the comparison of the age 59.5 limit to the ability to take a loan on cash value life insurance
I JUST posted the same before I saw your comment 😆 yeah these insurance folks trash 401k investments but they're really not bad... you're right, 401ks you can borrow the money penalty free, but they charge like a small $40 processing fee... I know cause I've done it TWICE at my last job... you pay yourself back out of your check and you're GOOD! Glad you called the bullshit in these insurance videos too 💯💯💯
What about the death benefit. If you're planning on passing the death benefit onto your family and thinking generationally, is whole life better?
Perhaps it depends on the internal numbers.
and how much interest would the insurance company charge to borrow my own money? why not just get a term policy and invest in an index fund?
Thank you for bringing up these concerns! It's important to fully understand the features of any financial product, including IUL policies.
When it comes to borrowing against your IUL policy, the interest rates are generally competitive and often lower than traditional loans (as of writing this it's around 4.5%). Remember, the ability to borrow against your policy can provide a level of financial flexibility that other products might not offer, especially in an emergency or unexpected situation.
Comparing IUL to a term policy combined with investing in an index fund is a common consideration. While a term policy with an investment might work for some, an IUL can offer lifetime coverage and potential growth tied to a market index without the downside risk of direct investment in the market. This means you can have some exposure to market growth without the same level of risk.
Both strategies have their own sets of pros and cons and align with different financial goals and risk tolerances. It might be beneficial to consult with a financial professional who can understand your individual needs and recommend the right approach for you. Feel free to reach out if you'd like more information tailored to your situation. #IUL #FinancialFlexibility #InsuranceEducation
Where can I reach you ? I’m seeing all these videos on cash value life insurance but I don’t see any on where to go to get one set up. Other questions like how much do I need to put in each paycheck for how long until I can pull out x amount of dollars comes up too
One of our agents would be happy to answer your questions. You may reach out to us directly at 678-969-9000 or submit an inquiry at www.AllianceGroupLife.com
RUN!!!!
If you get hit by a bus, all of your savings disappear! The insurer keeps any and all of your savings!
no part of what you just said is true.
It would be great if most of premium would go to the cash value instead of DB.
Question I'm looking at the IUL policy a 500k policy looks like it runs about 2200 to 4500 a year plus or minus a few 100... And has an average return of 7.09% per year ... So question is if I buy a 500k policy does the 500k increase the 7.09% per year ( meaning I would make approximately 35,000 after that first year on average ) or does just my premium of the say 3000 gain a 7.09% or would make only 210 after the first year ...
Just the premium
Put it into a Roth at work. You can take out what you put in at any time but not the growth.
In general, how much monthly are these policies required?
simple answer is, however much you can afford. Some people put $50/mo, some do $5000/mo, just depends on your savings goals, health, amount of insurance required, etc. A licensed agent would be able to run you a quote and show you the numbers. If you'd like to contact one of our trusted licensed agents within the U.S., we'd be happy to help. (www.alliancegrouplife.com/site/contact)
I’m interested!
If you'd like to learn more, you can reach out to Mary herself at geni.us/maryglynnfisher. Or, if you're just looking for more info, you can visit our website at alliancegrouplife.com
🙌🏽👊🏼👏🏽👏🏽
How much do you have to put down for them
Can i access the face value of my policy or only the amount that i have paid into it?
You may access the cash value only. However, if you have Living Benefits, you may access the face value if you suffer one of the triggering conditions (like Heart Attack, Stroke, or Cancer, etc...). We have more videos on our channel about Living Benefits if you'd like to learn more.
Interested
If you take out the cash value & never pay it back, does it subtract from the coverage if payed out?
correct, it would subtract from any additional cash value, and anything left over would subtract from the death benefit.
The nice thing about the cash value is that your loans are participating loans, so your full cash value amount continues to grow even while you take loans.
@@AllianceGroupLife so it really isnt free and clear cash. I am simple. Is this money I can pull out without any consequences to my policy
Cash is cash. This is a life insurance policy. Not sure what would ever be considered "free and clear cash", but in the policies we represent, you may pull out your cash value quickly and easily. @@kramsemaj7869
@@AllianceGroupLife let me rephrase. Can I pull the cash out without any consequences? That is will my benefit change at all. For example if I had a 100k whole life policy with 5,000 cash value and if I pulled the the cash value does anything changes with the 100k benefit?
What the best cash value life insurance in Europe?
I'm interested
Would love to share more about it
The way all these insurance "gurus" try to sell this type of life insurance is so funny just get term life insurance and just but the rest in real-estate or some other investment that you can just pull your money out. Their premiums are nearly as expensive as a mortgage each month plus all the fees they charge you it should be illegal straight up scam 🤣
TRUTH!!!! I sell term and have my clients invest in mutual funds.
Love how she won’t name the product 😂 because she knows people know whole life insurance is a scam
Or you could just take the cash that you are putting in this in the bank, keep 100% and you can use that for whatever you want as well 🤯
The interest is 4-10 percent, that’s the difference
When you access the money you are charged that or greater. When you die cash value is lost. Also, the policy dividends are a return of overpayment of premium, so you are just getting your original funds back that they overcharged on
Yeah just break your back working or spend all your time away from family or work until you’re 70
And the insurance company gets rich
You’re dumb. No matter what you do to GET MONEY, you’re making someone rich. Even if you work a reg 9-5, you get a small percentage (compared to the work and time u put in) AND THEN..you get taxed on that. While you make the company owners rich without them having to work. DUH
Can you just put in a mutual fund
Yes! Mutual funds on average have a 8-12 % return versus these cash value accounts are sitting at best a 4% return plus penalties for early withdrawals/surrender…
You can borrow from your 401k penalty free... they charge a small processing fee... i know, ive done it 💯💯💯 Now if you DON'T payback your 401k, THEN you get xharged penalties and fees... also, you can cash it out if you leave your job or get terminated... i get sooo tired of these filks trashing 401k investments 😆 🤣 😂 😹 😆 theyre not perfect, but theyre far from terrible...
HMU
would be happy to help. send us an email at info@alliancegrouplife.com
No penalties?
no penalties, you simply borrow from your own cash value and pay the interest on that loan (it's somewhere around 4% right now, depending on carrier). So instead of going to a bank, justifying a personal loan, then paying the 8-12% interest on that, OR dipping into your retirement accounts and incurring a penalty, you just borrow from yourself. You're your own banker.
@LivingBenefits If I have to pay interest for taking and spending my own money - it's not my own money.
What it is, is a loan I have easy access to. What it is not, is my own money.
If it was, I could pull from the cash value and not have to pay it back or pay interest on it. I'd only have to pay a tax penalty - same as any normal investment account.
@@AllianceGroupLifeNo penalties, but you have to build up cash value to be allowed to borrow and to do that you have to pay fees on the front end and fees with part of you monthly payments. Then you have to pay interest on the amount you borrow, so it's not at all free to take this money out; in realty, it's quite expensive.
@@luxintenebris1776the reason you are taking a loan out is so your cash value amount in the policy remains untouched. Therefore gaining compounding interest uninterrupted for the duration of which the policy is in force.
All of these comments are very telling about where you would be in the future 😂 70 and working along with complaining about the government.
preach
What is this women's contact info
This is Mary Fisher with Five Rings Financial! You may find her on her website SolveForLife.com