I totally understand that life insurance is complicated. There are many different types of products available. You should always have life insurance. The most important question is what kind?!! Well, that’s where having a professional on your side makes a huge difference. Indexed Universal Life is a newer product that used to only be available for millionaires in the 1920’s. That would mean in today’s dollars, you would have to have been a multi-millionaire even to qualify. Fast forward in time, indexed universal life insurance is a safe, secure place to park your money that will not only protect the ones you love but will save you a ton of money in taxes over your lifetime.
It’s almost tax season and think about the bill you might be about to pay. Maybe you’re about to get a refund but wouldn’t you love to get an even bigger refund? Taxes take a huge bite out of our income that we work so hard for and they don’t have to. Listen to this YouTube by a financial planner for the wealthy who doesn’t even sell life insurance:
See how he recommends it as a strategy not to pay as much in taxes.
The beauty of having universal life insurance is that beyond saving taxes, you will never lose a penny of your precious capital. It’s a solid long term investment.
Are there fees? Yes, every product has fees but the fees are far outweighed by the tax savings and the safety of your money. What if you put your money into a 401k? Who is really benefiting? Well, the government. If you think about it…pretend you’re a farmer and I, as your most generous Uncle Sam, offered for you to pay taxes on the bag of seeds you plant your crop with or the harvest at the end. Which would you pick? Probably the bag of seeds because that didn’t cost you much at all and your taxes will be super low. Which would the government prefer? That you pay now or later on the huge harvest? Of course, the huge harvest because that will generate much more tax revenue.
Hey, I was one of the first onboard with a 401K but other than the matching dollars your employer gives you, there’s not much benefit. Your employer actually owns those assets. Ask someone that used to work for a firm that went bankrupt. What happened to their 401k benefits? Does your employer guarantee you never to lose a penny if you put your money in a stock market associated fund? No!
Now you can put your money in a money market fund and pretty much be guaranteed not to lose but the interest you earn will be super low. You’re much better off paying small premiums for indexed universal life. If disaster happens, and unfortunately it sometimes does, you will have the peace of mind to know that your family is protected. If disaster doesn’t strike, you will be building yourself a retirement fund that you can always count on and that you can use during your lifetime for whatever your heart desires, tax free.
What’s the catch? Oh yes, there always is one. In this case, there are two. First of all, you have to qualify. That means your health has to be good. Second of all, to make this work, you need to be young, ideally younger than 42. Normally, those two things go together. Youth and good health. The time to plan is now while you have both. When will you most need the assets? When you’re older and your health isn’t as good.