Term vs Cash Value Part 2

Would you EVER knowingly save $200 per month like this?

• For the first 0-3 years you would have no money in your account.
• You were told you receive anywhere between 3-6% rate of return.
  
• If you wanted your money, you have to borrow it with at an interest rate of 4-8%.
• The company has 6 months to give your money after you request it.
• If anything happens to you prematurely, the company will keep the money.

Of course you never would knowingly. But what if I told you that 200-400 of accounts are set up like this every day? What if I told you that 70%+ of life insurance policies sold outside of work, work exactly like this? These so called savings accounts are known as:

• Whole Life
• Universal Life
• Variable Life

and there are variations within each type. All insurance agents who sell these cash value policies will sell these life insurance policies as an "investment", and sell it as a 2 things (Insurance & Savings Account) when in reality the consumer will only receive the Death Benefit or the Cash Value which by the way can never exceed the value of the death benefit.

The way it should work is like this:

• The $200 a month should be directly accredited as soon as it is deposited into the account.
• You should receive rates of 7% or higher!
• You shouldn't be charged anything to withdraw your own money.
• You should have your money within 6 days by law.
• And if anything were to happen prematurely, your family should keep the money!

How is this all done? By buying strictly TERM LIFE INSURANCE and INVEST the difference. Allow me to show you an example of what my company can do.

Jones Family: Cash Value

• Mary - $75,000
• John - $75,000
• Total - $150,000
• Premium - $114 Month

That's $75,000 of coverage on each John and Mary which will only leave $60,000-$65,000 after funeral expenses, and that will not do much if they have a mortgage, car payment, credit cards, Etc. Plus they do not get any of the cash value that was part of their life insurance. How it should look is that after John & Mary decide what debts they would want cover if any of them were to pass unexpectedly.

• Mary - $250,000
• John - $250,000
• Total - $500,000
• Premium - $66

Mary and John decided they want their home and consumer debt covered if any of them were to pass unexpectedly.$250,000 would cover the remaining balance on the home as well as any consumer debt with some left over to help either spouse to take some time away from work to be with family during their grieving. That is a difference of $48. Now $48 may not be a great deal of money, but if John & Mary were to invest that into a mutual fund averaging anywhere between 8-12% over the next 30 years.

• 8% - $71,537
• 10% - $108,503
• 12% - $167,758

In 30 years John and Mary can be completely DEBT FREE with a debt elimination plan, and have anywhere between $71,500 - $167,700 saved up. They will then be able to drop their need for life insurance and be self-insured by their savings. There is no need for permanent life insurance unless you want to be in debt for your entire life. So if you remember anything, please remember that Cash Value Life Insurance is the worse thing that consumer can ever purchase!