7 Facts: Specially-Designed Whole Life Policies with The 100 Year Real Estate Investor
The Whole Life Insurance Policies offered by the 100 Year Real Estate Investor are specially-designed. This means they work harder toward achieving your financial objectives, no matter what they may be.
Here are 7 facts about our specially-designed strategies that may not be true about typical whole life policies.
1. The growth is long-term and steady.
This is not a get-rich-quick scheme. Life insurance is an ASSET, not an investment.
Just like when you start a new business or purchase real estate, you won’t see profits right away. You may have to wait 3-4 years before the cash begins to produce a positive return (because there are expenses, just like a business). But, once you are in the green the returns get exponentially better as time goes on.
2. Your policy is designed to minimize commissions and maximize cash value.
We specially design our policies so that the cost of insurance is approximately 70% less expensive than a traditional whole life policy. That means less commission for the insurance agent, and more dollars working for you inside your policy.
3. There is a big difference between mutually-owned insurance companies and stock-owned insurance companies.
When you buy a whole life insurance policy from a mutually owned insurance company, you become a shareholder of that insurance company. This allows you to enjoy dividends in addition to your guaranteed increases. In a stock-owned company, outside shareholders are the co-owners, meaning policyholders are not entitled to dividends.
4. The initial death benefit is higher than the initial premium. It grows over time, meaning a larger and tax-advantaged amount paid to the beneficiary.
The premiums made to the policy are used in part to purchase a death benefit. Of course, that amount varies depending on the Insured’s age and health. However, each year that a dividend is paid, that death benefit increases. This results in the inheritance left to the beneficiary being greater than the amount initially contributed. The death benefit also can pass income tax-free and without going through probate.
5. There is less risk with this strategy.
The cash value of your policy is not subject to the market risk associated with other investments. Our clients receive guaranteed returns over time, plus the opportunity to earn annual dividends. This strategy is a safer option than having a few good years in the stock market, only to lose 50% during a downturn. Your guaranteed annual increase, along with any dividends you receive, are all locked in! They remain unaffected if the market crumbles.
6. There are no restrictions on when you can access your cash value.
A 100-Year Real Estate Investor policy not only helps your family prepare for the unexpected but can build cash value that you can use during your lifetime. You can access your equity in the plan to provide retirement income – when and how you want it. There are no government penalties for “early” withdrawal, or for waiting “too long.” There are also no penalties for taking out “too little” each year and no mandatory annual “minimum withdrawal,” requirements that are typical of traditional retirement plans (and without the restrictions of 401k withdrawal rules).
7. Your cash value continues to grow, even while you use it.
You can borrow against your equity in the plan and use it to buy things or to invest in anything you want, while your plan continues to grow as though you never touched a dime of it. As long as you have equity in the plan, you can’t be turned down for a loan. There is also no need to fill out any nosy credit applications. If an emergency comes up and you have to reduce or skip some loan repayments, you won’t get a black mark on your credit report or harassing calls from bill collectors.
Last but not least, there are no surrender charges! You could cash in part or all of the policy whenever you chose to.
These are just 7 facts, but there are countless benefits that come with a 100 Year REI Policy. Check out this Podcast or this Free Webinar for a dive into those benefits. We’d love to discuss with you all the additional ways you can leverage this strategy to achieve your financial goals.
If you already have a policy or are being proposed one, get with us to ensure that it was designed properly. If you’ve got questions or are ready to get started, schedule a call with our Team!