Using various life insurance structures can give an individual the ability to “Be their Own Banker”. This opportunity is accomplished through the “Living Benefit” features that whole and universal life policies can provide, when structured and funded properly. These benefits are often overlooked by policyholders, as they default to the belief that life insurance only has a “Death Benefit.” Thus, most life insurance users only take advantage of Death Benefits, not Living Benefits.
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Mindset Paradigm Shift
How did banking lead us to and validate this approach to using Life Insurance policies? Because of the following similarities between how banks make money and how life insurance can be used:
- Conservative use of Leverage. Individuals can typically borrow up to 90% of their cash value.
- Compounding interest 24/7. Banks make money while the employees are sleeping, just like investing for people.
Process X Product
It takes the combining both the process and the product that you see the full advantage of this prosperity-building program.
There are even cases where, because your cash value continues to compound even as you are borrowing; you can actually make money(dollars) in spite of paying a higher percentage (%) for your loan than the return (%) you earn from the cash value money in your policy.
Policy Premium: Expense or Investment
What if you began to view life insurance as a storehouse of money? What if you saw it as an opportunity to borrow money and grow money - at the same time!
Those who look at cost only (not taking into account the value (cost vs. benefit) of a policy) usually default to using term life insurance policies. In these cases, they are just looking at the death benefit, as they have not been introduced to the out-of-the-box ways to take advantage of the extra benefits of this Living Benefit type of insurance.
