As a mom of 4 who knew that life insurance was a crucial need, I chose to not make the call to get my family protected because I was scared. It wasn't until losing my dad and being positively impacted by his tax-free $100,000 life insurance policy that I learned about tax-advantaged strategies with life insurance. And even then, I was afraid to have the "scary" conversation with a "scammy" life insurance agent whose "mission" is to simply capitalize on my inevitable demise. HAHA! Boy, was I wrong and boy, was my thinking small. My biggest fear became my greatest purpose in easing the conversation to protect families (particularly children) and build wealth through real financial education and powerful tax-efficient strategies. Uncover the truth about life insurance with me now as I expose 10 reasons why life insurance is fun and sexy, not scary and scammy.
- The Death Benefit is 100% Tax-Free – Yes, like tax-free cash money. I used to think that nothing was tax free. Let’s look around and examine. Everything you own is taxed, from that pen on your desk to the property you own–even the work you put into owning everything that you do is taxed. It’s what we call income tax, and the more you make of it, the more you’re taxed. Doesn’t this fact just kill your ambitious spirit and make you want to just die? Please don’t! Because that’s taxed, too. It is what’s called estate taxes. But what do you know… The one thing that’s not taxed is life insurance. Yup, the death benefit from life insurance is 100% tax-free. Yes, it’s like buying cash money at a deep discount — Black Friday even! Where else can you buy cash for a fraction of the price? Only life insurance. You have to admit that anything tax-free is pretty darn sexy–life insurance specifically.
- Life Insurance is Safer Than Banks – Did you know that banks own life insurance by the billions? Did you know that life insurance is considered a bank’s tier one capital? It’s true: life insurance is the core measure of a bank’s strength. What kind of fact is this? A real, fun, and sexy one that we should all be in the know about to take advantage of sooner as a powerful investment solution. Think about this: While banks are giving us .01% back, they’re reinvesting our money in assets like life insurance. So why not invest directly into life insurance for higher, tax-advantaged returns and tax-free benefits to ourselves and our family? Cutting out the middleman and ditching Uncle Sam is one super sexy money move.
- It’s not just about the Death Benefit, it’s about the Living Benefits – The industry term is “acceleration” of the death benefit, which simply means access to the death benefit while the insured is alive to cover expenses for a terminal, critical, or chronic illness. Some living benefits can be added to the policy for an additional cost, but there are proprietary term life insurance solutions that offer a built-in living benefit at no additional cost, providing access to 90% of the death benefit as a living benefit. Here’s a real client example: a 30-year term policy of $500,000 for a 35-year-old female in good health is only $41 per month. AND~ the Insured can access up to 90% of the death benefit, totaling $450,000 for a terminal, chronic, critical illness. Like OMG how sexy is this really? Honestly, it’s so much sexier than health insurance–a sexy approach to supplementing health insurance all in itself. Tax-free death benefits are sexy but living benefits make life insurance extra sexy.
- Tax-advantaged cash value (long-term savings) – Cash value is long-term savings that’s built inside of certain types of permanent life insurance solutions that’s tax sheltered. Like cash, a portion of your cash value is tax-free. Withdrawals are tax-free up to the total premiums paid into policy (the cost basis). The cash value growth that’s over and above the cost basis are tax-deferred and taxed as income if withdrawn. However, the loophole is the ability to borrow against your money. I know, borrowing your own money seems so unsexy but what if you can borrow your money at low interest rates such as 2-3.5%, versus upwards of 20% in state and federal income taxes. Like wow, so much sexier than your taxable or tax deferred accounts with little to zero returns and/or no guarantees, capital gains taxes and unknown future income tax rates at retirement. Cash value is a definite perk to sexy life insurance.
- Cash value with guarantees – Yes, there’s principal protection in an Indexed Universal Life Insurance (IUL). What if the market crashes again like it did in 2008? If you had one of these accounts with downside protection, while everyone lost about 40% in their retirement accounts, you would have lost $0 and kept 100% of your money (account value). Not to mention the absolute freedom in what you wish to spend your cash value on–unlike retirement accounts that can’t be touch till 59.5 to avoid a 10% penalty and 529 accounts that are restricted to education only. It’s like creating your own super-charged bank. How fun and sexy is the freedom you’d get out of this life insurance strategy?
- Indexed Universal Life (IUL) Insurance offers higher rates of return than savings accounts and CDs at banks and whole life policies. I have access to rates of return up to 21% with no loss. Imagine how sexy that would be in your portfolio? Furthermore, some accounts offer higher and even uncapped return strategies with no loss–but be aware of the fees (spreads) tied to such accounts. (Hey, sometimes we really do get what we pay for and protection can go a long way. Be in the know of what’s best for your needs.) How’s your whole life performing? And let’s be real, what’s your bank doing for you? Why not have sexy accounts like these to work harder for you?
- Life Insurance is Best with an A-rated Company – Not all companies are created equal and each company has it’s own credit rating. An insurance company’s credit rating indicates an insurance company’s solvency, financial strength, and ability to pay policyholder claims. Here’s what it means to you and your family in simple terms: You want to work with an A-rated insurance company that has a healthy and strong balance sheet with more than enough in assets to pay out on its promises. Owning a policy with an A-rated company is truly the sexiest bet.
- Term Life Insurance is inexpensive – Here’s a real client example: $250,000 of life insurance coverage with living benefits (access to death benefit) for a 35-year old female in good health for a 30-year term is $19 per month. What other accounts do you have that could mean hundreds of thousands of tax-free cash money to your family at a nominal fee of under $20 a month? Seriously though, how much fun could you possibly have and how much sexier could your (family’s) financial strategy be for $19 a month? I bet nothing quite this fun and this sexy. Oh, and we have yet to touch on the living benefits that are built into this term policy, giving the insured up to 90% access to the death benefit while alive. Sexy life insurance is a thing and it doesn’t always cost an arm and a leg. Better yet, it can help you pay for medical costs to cover both in a critical or chronic condition.
- Personal Life Insurance vs. Life Insurance from Work- So you already have life insurance with your employer–that’s a great start! But the truth is, it’s also the most basic type of life insurance under the category called group term. Did you know that you’re only covered while you’re employed by your company. Yes, you’re only covered while you’re part of that group of employees. What would happen to your family if/when you got laid off, quit your job, or retired? How much older will you be when that time comes? Important note: the older you are, the more expensive life insurance becomes–yes, including the sexy ones with living benefits that offer tax-advantaged cash value and access to your death benefit. Your own personal life insurance policy is always a good strategy as it will fill any gaps in employment and you can lock in lower rates/premiums. The sooner you get it, the better and sexier the deal. It is always more fun and sexy with more options, wouldn’t you agree?
- Life Insurance can Save a Business – Key man life insurance for invaluable key employees & buy/sell agreements are a fairly common arrangement for small business partners where the death benefit would be pumped back into the business to protect it from losses. Wow, now this is what I call a smart and sexy business strategy for a fun and sexy team that’s truly invested in each other as a real team for business success.
And who knew that life insurance was so fun and sexy? I did and now you do, too.
Now is ALWAYS better than later when it comes to getting life insurance working for you. But as you can see, there’s a lot to it and it takes time to determine the best solution for you. This is why working with me would save you time and make you money. With access to over 100 A-rated insurance companies and a case design team, I can help you find and design a policy that works with you and hardest for you. Click here to schedule a time to learn more about about how various life insurance solutions can make your financial lifestyle strategy that much more fun and sexy.
With a Fun Kind of Real Love,
Uyen Nguyen AKA Win Win