I wanted to share this book I just recently finished. The name is "Money. Wealth. Life Insurance" by Jake Thompson. The book essentially talks about how the wealthy use life insurance as a tax-free personal bank to supercharge their savings.
Now what the heck does that mean and how do they do it? These are questions that wouldn't have even crossed my radar a couple years ago. Seeing that I am fairly new to the financial industry (2018), I wanted to take some time to share with you what I've learned about this financial product. Before I do that, let's learn the basics with a quick video:
First, I would like to disclose that I take advantage of many different types of financial vehicles but cash value life insurance is one of my favorites. Here's why, I consider myself a conservative to moderate investor. What does that mean, that means I prefer the safer option versus the ones with more risk. Why is that important? It's important because I prefer fixed and guarantees and would prefer a future where finances isn't what drives me to a quick death. I enjoy being spontaneous but feel less anxiety and stressed when a plan is in place. There is an old saying by Benjamin Franklin that "if you fail to plan, you are planning to fail".
I tend to learn from people who have been there and done that. I look to people who have achieved the things I would like to or have the things I would like. I admire couples who have been married for decades and I learn from people who are wealthy because I see the joy it brought them. Hence the reason for the book "Money Wealth Life Insurance" and I could go into all the strategies the book goes into but then there would be no reason to purchase the book. I am not one to take food off other plates so go buy the book :), it's worth the quick read.
This book gave me insights and clarity, ensuring that the strategies I share with my clients are up-to-date and proven to stand the test of time. Through this book I learned that banks are some of the biggest purchasers of insurance which makes sense when the book explained the strategies the wealthy use. Another more reassuring fact is that people like Walt Disney, Ray Kroc (Mcdonald's), J.C Penney, Pamper Chef, and many more utilize the ability to become their own banker to fund their dreams.
The quick overview of cash value life insurance is that you pay your policy premium, a component of that premium builds cash value (like having a savings account) after the cost of insurance of course. You then receive a return of premium aka dividend depending on the company you decided get your policy with (Mutual), which also grows the cash value. Tax-free benefits, withdrawals (not recommended) and loans are all available when you have access to this asset.
How to gain access to a financial asset that can provide you with all the benefits mentioned above and more: Visit Cover Path for you free no hassle insurance quote. If you want to hear some of the strategies I share with my clients, contact me.