To me, a cash value WL insurance policy makes the most sense when you use it to take out loans on items that can generate more money than the interest that you are charged.
The only concern for an individual would be, "how can I afford these interest payments?" Which is with good reason especially once these payments get very large. I'd say, take the policy loan money and invest it where you'll get the returns to cover the interest payments.
100% agreed. If someone wants to be agressive with a policy, we would recommended funding it with much less than their income. This allows room to cover loan interest payments and loan principal payments
PUA =Paid-up additional (PUA) insurance is extra whole life insurance coverage that's purchased in full by using any earned dividends or with a PUA rider. The additional coverage is added to the death benefit amount, and the premium payment will contribute to the policy's cash value.
Very interesting concept… can you make policy loan payments throughout the year? If so could velocity bank be integrated into this so your income is always paying down the loan amount? For example you make a premium payment at the beginning of your policy year,then use the policy as a line of credit to pay all living expenses as a policy loans at the same time you are “depositing” your biweekly income, paying down the policy loan. I hope that makes sense 😂😂😂
Thanks for the comment. Makes sense. Answer to the question is: Yes. If you are making regular loan payments, you will pay less interest. Great question!
I hope you could run comparison between "funding a $100k policy then loan $80k each year, then stop funding and pay off the loan" VS "Funding a $20k policy without a loan for a longer period(stop funding at the same time when the first policy get paid off)"
I suppose we would need to be affiliated with an insurance company to have access to these spreadsheets but it would be nice to be able to do this on our own. I’m 62 and in good health. I have a 550k term policy expiring in 9 years. I like the velocity banking aspect from the previous commenter and have around 4 to 5k per month to put toward a HECV policy. Is it possible to have one written for me at my age and make sense fiscally - AND do you have a list of agents by region that we could get in touch with that are willing to take less commission and write these types of policies?
Thanks for the comment. A policy at your age can make sense. I'd review the numbers and decide if you feel it is a fit. We do not have a list of affiliated agents. However, we do work nationwide.
To me, a cash value WL insurance policy makes the most sense when you use it to take out loans on items that can generate more money than the interest that you are charged.
I've actually thought about this a few times and have also asked myself whether or not it makes sense. I'm so glad you're made this video.
Thank you!
Wow, I thought about this yesterday and here you are answering my thoughts/question. I love this universe and appreciate your videos.
Thank you! :)
The only concern for an individual would be, "how can I afford these interest payments?" Which is with good reason especially once these payments get very large.
I'd say, take the policy loan money and invest it where you'll get the returns to cover the interest payments.
100% agreed. If someone wants to be agressive with a policy, we would recommended funding it with much less than their income. This allows room to cover loan interest payments and loan principal payments
PUA =Paid-up additional (PUA) insurance is extra whole life insurance coverage that's purchased in full by using any earned dividends or with a PUA rider. The additional coverage is added to the death benefit amount, and the premium payment will contribute to the policy's cash value.
Very interesting concept… can you make policy loan payments throughout the year? If so could velocity bank be integrated into this so your income is always paying down the loan amount? For example you make a premium payment at the beginning of your policy year,then use the policy as a line of credit to pay all living expenses as a policy loans at the same time you are “depositing” your biweekly income, paying down the policy loan. I hope that makes sense 😂😂😂
it makes sense.
Thanks for the comment. Makes sense. Answer to the question is: Yes. If you are making regular loan payments, you will pay less interest.
Great question!
Make sense. Thanks
I hope you could run comparison between "funding a $100k policy then loan $80k each year, then stop funding and pay off the loan" VS "Funding a $20k policy without a loan for a longer period(stop funding at the same time when the first policy get paid off)"
That sounds like a fun case study that can benefit a lot of people. We'll add that to the content list
can i get a copy of that loan workbook?
I suppose we would need to be affiliated with an insurance company to have access to these spreadsheets but it would be nice to be able to do this on our own.
I’m 62 and in good health. I have a 550k term policy expiring in 9 years.
I like the velocity banking aspect from the previous commenter and have around 4 to 5k per month to put toward a HECV policy.
Is it possible to have one written for me at my age and make sense fiscally - AND do you have a list of agents by region that we could get in touch with that are willing to take less commission and write these types of policies?
Their Contact information is linked in every video including website and phone number. You are in good hands.
Thanks for the comment. A policy at your age can make sense. I'd review the numbers and decide if you feel it is a fit.
We do not have a list of affiliated agents. However, we do work nationwide.
First option
where can we acces the loan workbook pls?
Thanks for the comment. We make the workbooks available to those who have purchased policies with our company.