I've had term life insurance for almost 20 years now. It covers my wife and kids in the event of the inevitable. But the term is almost up and I met with a new insurance agent today. He really tried pushing Universal Life Insurance on me, which really confused me. So I came home and started researching. Seems Universal Life is a shit product. But then I came across strategies for using Whole Life Insurance as a great alternative to a savings account.
Your family gets a death benefit in case you croak, you earn at least 4-5% on your money and you can "borrow" that money anytime you want, both tax free and with no penalties. You "pay back" the loan at the same rate you're earning on your cash value so it's basically a wash (since you're borrowing money from the insurance company and not directly from your cash value). Seems that at the end of the term you can cash out all your dough free on any tax. Plus that money is untouchable. No lawsuits, liens, bankruptcies or ex wives can get to it.
I really like the liquidity of it. If I want to grab some money to grow my business or for a downpayment on a house, I can, just like I would from a regular savings account. I'm just earning 5% instead of 0.5% and my family get a million dollars if a piano falls on my head. I don't recall @MJ DeMarco mentioning this kind of product as one of his investment vehicles in Unscripted but I'd be curious to know his thoughts on it as well as everyone else's.
Thank you for your time.
Your family gets a death benefit in case you croak, you earn at least 4-5% on your money and you can "borrow" that money anytime you want, both tax free and with no penalties. You "pay back" the loan at the same rate you're earning on your cash value so it's basically a wash (since you're borrowing money from the insurance company and not directly from your cash value). Seems that at the end of the term you can cash out all your dough free on any tax. Plus that money is untouchable. No lawsuits, liens, bankruptcies or ex wives can get to it.
I really like the liquidity of it. If I want to grab some money to grow my business or for a downpayment on a house, I can, just like I would from a regular savings account. I'm just earning 5% instead of 0.5% and my family get a million dollars if a piano falls on my head. I don't recall @MJ DeMarco mentioning this kind of product as one of his investment vehicles in Unscripted but I'd be curious to know his thoughts on it as well as everyone else's.
Thank you for your time.
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