Why whole life insurance can work for you

You've probably heard "Buy term.  Invest the difference," if you've done much thinking about life insurance.  Why not?

Term insurance is cheaper.  It leaves you more money to do what you want with.  It separates the "investment" from the insurance.  Those are usually the reasons given.

IF you only wanted to buy insurance and invest the difference, and those were the only two functions you required of your money, that might work.  However, what if you buy something big, like a car?  What if you put a down payment on a house?  How do you save for that?

You can use a whole life insurance policy as your bank.  It can be your savings plan.

So, let's say that you are the typical American who borrows money to purchase a car.  You would go take out a loan.  You would pay interest to a bank or the car dealer.  Zero interest loans are popular these days, but they often reduce your ability to bargain on the price of a car.  What if you were able to bargain as if you had cash, but not have to get a loan or qualify for a loan?  With whole life insurance, that's they way you work.

Every dollar you put into your whole life policy is yours once expenses and insurance is paid for.  The policy builds a cash value from which you can loan yourself money.  You don't have to qualify for the loan.  It's your money.  In many ways, the more often you loan yourself money, the more your policy works for you.  The more interest that you avoid paying to banks and the more interest you pay back to yourself when you repay your policy, the better off you are.

This is because if you get certain kinds of whole life policies, you continue receiving interest on the cash value, even if it isn't there and you can receive dividends as if the cash was still there.  The whole time you still have the death benefit of the life insurance, less any loans out.  This is usually still more than enough to cover your needs.  Of course, as with any use of your money, you will want to look at your situation with a professional and make sure this strategy works for you.

Loan yourself money

The new year brings all sorts of changes and resolutions.  People are looking for new ways to save and invest money.  What if one of the changes you could make would mean that you never had to pay a bank interest anymore.

What if you could create a way to loan money to yourself, continue making money on your money that you set aside AND pay interest back to yourself instead of the bank?

You can do that through a product that has been around for a century.  It's not an investment, so your money is not at risk.  It's not a savings account so you don't pay taxes on your earnings.

It's simply a whole life insurance policy from which you can loan yourself money from at any time.  I'll be writing more about how as the days go on.