Why Would I Buy That?

In today's world, where we have a zillion choices of where to spend our money, where to store our money combined with the challenges of saving our money and spending our money wisely.....  a question arises.  

WHY in the world would I spend money on a pricey life insurance policy? A useless, pricey, 'permanent' life insurance policy.

My answer is "MANY reasons!". I personally have two of them. And I help people set them up in my job each day. They're wonderful in my opinion. A great financial tool that if used properly, people grow to love.  

I was reading this morning in the Wall Street Journal about student loan interest rates potentially rising to 6.8 percent. Student loan debt has just surpassed credit card debt in our country - obviously neither are a good thing.

Well, let's say that I have $86,000 in cash value built up into my permanent life insurance policy (that's what you do, all those payments go into the policy and build cash value. Obviously, the more you put in, the more the cash builds - there is no free lunch). But, I now have $86,000 in collateral that I can use. I've recently heard of an East Coast bank that will take on my $86,000 as collateral and give me a student loan for 3%. So, that is one option.

OR, because I have $86,000 in my policy, I can even take a loan from my own policy.  I can pay it back when I want (I advise - ALWAYS pay it back) - over three years, over six years, over 12 years, whatever I choose.  

Bottom line is that having LIQUIDITY/MONEY in these contracts that you have access to (unlike your 401(k)/IRA) before age 59 1/2 can be a blessing when needed. No banks to haggle with, no anything.  Just cash for your use if so desired. It's not magic, however, you have to build your policy with money before you can use it (again, no free lunch).

Need help with ANY life insurance?  Call me and I'd be happy to teach you more, review your current policies to explain, etcetera.  Enjoy!