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Life Insurance for the Living

Life Insurance for the Living

To the average person, life insurance is a negative thought. It means that one is talking about death and most people don’t want to think about what happens after they are gone. But in recent decades a different kind of life insurance policy has risen, providing access to large sums of money and benefits while one is still alive.

Banking is a Business

We are all taught that the safest place to keep our money is in the bank. Bank accounts are insured by the federal government up to a certain dollar amount. This general protection is supposed to offer peace of mind and security. To add to the comfort, the banker places the money into an account that grows interest.

Putting money to work is what keeps account holders adding to their portfolio. Because this practice has been passed down from generation to generation, it all seems pretty normal. But banking is a business and a very profitable one for the banks, at best.

Not everyone puts their money into bank accounts. Some will venture out into the real estate markets, start a business, buy stocks and bonds or other risky endeavors because it is so easy to become addicted to watching money grow. It’s now time to protect the future by insuring it with today’s best activity.

Tax Free Money

Another group of investors has surfaced looking for places to put their money and never worry about losses. These ordinary citizens have learned the secret of how to protect their assets by locking in their financial gains with zero losses. This is the power of an indexed universal life insurance (IUL) product.

For example, money is deposited into the bank. The bank will then take those same funds and place them in a higher interest bearing account like an annuity or an IUL. The bank offers an account that earns less than 1% while the annuity or IUL account pays out 6, 7 or a higher percentage. But the money in the bank is not protected from lawsuits, taxes and public knowledge.

However, with life insurance, money is kept tax-free, the public is not made aware of one’s true net worth and the money is truly protected.

Be Your Own Bank

There are two types of insurance policies, annuities and indexed universal life (IUL).

Annuities are more common and are understood to be used for a long term investment. A few restrictions and penalties prevents constant access to investments. A typical retirement plan – like a 401k or an IRA plan – will allow access to funds for a fee until the age of 59 and 6 months. At this point, withdrawals can be made as funds are needed.

An indexed universal life insurance policy acts similar to an ATM machine. As monies accumulate, then may be withdrawn as a loan at a selected interest rate.

There is a choice as to whether to pay the money back in addition to a regular monthly premium or to keep making premium payments until the accumulation process out paces the loan. The great thing about an IUL is that money may be withdrawn tax-free at any time, as opposed to an annuity where it is conditional.

The Rule of 72

Follow the lead of the banks and other corporations, invest high and payout low. Why let the financial industry have all of the fun when you can buy into the same types of policies that they do?

Using a financial concept called the “Rule of 72” one can determine how long it will take for money to double – simply divide 72 by the interest percentage. Pretend that a bank account with an initial deposit of $1,000 will earns 2% interest annually to grow over time. The money will double in 36 years.

Living Benefits

You can invest wisely by buying an insurance product, instead of relying on a bank investment to make money. Try placing money in an annuity or other insurance products free from taxation (like an IUL) to grow money at a much higher rate than a bank can offer.

The benefits do not just stop at retirement. Many plan for retirement but never consider the possibility of illness or injury. Health insurance may cover some of the bills and a 401k and other retirement plans can also help. But imagine being able to access $100,000 of dollars from a life insurance policy to pay for heart surgery or cancer treatment. Imagine receiving an insurance check for surviving a heart attack. These are called living benefits. And insurance companies, like EPIC Specialty Benefits, are proud to provide these services.

While none of us can foresee the future, unforeseen occurrences happen every day and always when least expected. Life insurance allows us all to concentrate on the most important facets of life. It is better to have insurance and never need to use it, than to need insurance and not have it.

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