Recently, I have met several people who were sold products that they thought would accomplish the above but do not. Frankly, they were misled by the insurance agent/financial adviser.
There is a simple key to ensure your policy is designed to maximize cash value:- 50%+ of your contributions are available day one if you are funding multiple years (non-MEC)- 80%+ of your contributions are available day one if you are funding most of your contribution up-front (MEC)
If this is not the case with your policy, it is not structured to maximize cash growth.
If you are considering a high cash value policy or purchased one in the past decade, I likely can help you improve your cash growth with little or no cost or tax consequence.
If you believe you were misled or defrauded, you have consumer protections. I can review your policy and can advise if you have a reasonable chance of receiving a refund of your contributions (premium).Also, the best positive arbitrage comes from bank lines of credit most years. Typically, banks offer lower interest rates than policy loan interest rates. When accessing funds from your policy, you want the option to borrow from whoever is offering the lower rate.
Banks will only offer lines of credit on about 6 insurance companies. The cash in the policy is the collateral for the bank loan. Banks research insurance companies more than anyone else. Their money’s on the line. I recommend following the bank’s lead. They are savvy about money.
Why fund a high cash value policy with a company that the banks will not accept? You limit your positive cash flow (arbitrage) when you access funds.
Contact me to obtain the list of insurance companies the banks will accept. I am independent and work with dozens of insurance companies, including the top companies.
Your Personal Bank policies are a powerful financial tool that can grow your money insured, guaranteed, tax-free, highly liquid, and create positive cash flow on money you spent. It frustrates me when someone is sold on the idea, but is then misled intentionally or otherwise.
Until the federal government starts spending less than it receives to start paying down the debt, the upward pressure on bond interest rates will continue. Vanguard and others have recently predicted bond interest rates will increase over the next 5-10 years.The federal government fiscal irresponsibility creates an opportunity.You can invest in high cash value Your Personal bank TM policies that are insured, with guarantees, income tax-free, highly liquid, and likely to increase returns for the next 5-10 years!
