How The Wealthy Use Whole Life Insurance... For The Cash Value! | IBC Global

Wealthy people dont buy whole life insurance

Buy term and create your own savings portfolio. A “good” whole life policy will have premiums through the roof . There is no easy way around the fact that you will pay around $10,00 a year to an insurance company

I have trouble with having "access" to the funds in a whole life cash value. Being able to take out a LOAN against your cash value is not what I would call access. I also have "access" to funds at Wells Fargo by taking out a loan with them. But I don't have to self fund the loan first. If that money were in a savings account or an index fund account, for example, then I have access to those funds because the money in MINE. What's the point of "tax free growth" of "your" cash value if you can only borrow against it, and then lose it all when you die because the insurance company keeps it. Yes, I know you can cash out and get some of it back, but you'll pay a huge surrender fee.

Whats Elizabeth's the attorneys contact?

Is it me or did he not tell even tell me any advantage of having a whole life policy financially.

Why would I want a cash value policy when I can just buy a term policy and put the difference in a brokerage account? It grows more, and the cash value doesn't go away when I die. Why on earth would anyone buy whole life?!

I got my wife out of her overpriced whole life policy, and fired her insurance agent.
Got term death insurance, and invested the difference. It's been 5 years, and already way ahead.

Because ya gotta be wealthy to be able to use it to get richer. Got another method for people who are not of wealthy means? Otherwise, it means zilch to most people.

Wealthy people use it because they got enough excess funds they can invest in a financial vehicle that pays 3%. Most Americans don't have enough to invest in an IRA, let alone max it out, let alone have enough left over to invest in additional financial accounts. I have a whole life policy not to get rich but to have a life time policy for when I'm in between jobs and was hoping to get enough that it would self-fund after 15-20 years because you aren't get a term policy after 60

Why is it the only people who say the wealthy use whole life insurance to preserve/grow wealth are insurance companies? I have never seen a wealthy person say they use whole life insurance.

would this work in different countries like any place in eu and the brits? thanks a bunch

Unfortunately whole life insurance is a conversation that you know the answer to immediately—stay away from it. You can smoothly talk until you’re blue in the face but no words can suppress the one-sided benefits employed by the insurance co. There’s a reason why you don’t sell term life and it’s because it does the job at about 16 times less than you get paid for it. I appreciate the video because it’s well spoken and you used materials, it’s just flawed at the core.

Like Warren Buffet said, dividends are only good if the business you’re investing into can’t make good use of that capital. So if you’re trying to invest into businesses with actual growth, looking at dividends is a waste of time. Why are you investing into a company if they’re returning capital to you because they think you can make better use if it than they can. It’s not much different from bond investing. The way I see it if you have a $1 million at some point, that’d be enough to create a portfolio that would pay you between 50k-70k in dividend income...

Uh, I'll need a layman's explanation of this sir (lol)

My favorite part of this video is when you proved that 99.9% of us can get all these benefits without paying you a commission 🤣

If you pay a million and you have a million in tax value, you still pay taxes if you pull the money out. This is because if your cash value equals your input, you would have to received gains to offset the extreme amount of fees paid.

Imagine selling a plan where you get taxed to take your money back 🤣

Banks don’t have insurance in the same way we do. Wealthy people with a networth of 13million+ might need it to avoid inheritance taxes.

Since this doesn’t apply to nearly everybody, why do we need this? I can do everything you are doing with a taxable brokerage. So why pay you to neuter my returns? 🤔

He needs to get to the point quicker.

Does this apply in the UK?

this is a beautiful presentation on cash value whole life, so much information and knowledge.

I only have a small policy to start with. But thank you so much for explaining all of this - I'm sure I'll be using this from now on.

Yes , WE NEED TO KNOW THE TRUTH ABOUT ALL THESE POLICES. WE STRUGGLE TO PAY LIFE INSURANCE, SO OUR CHILDREN DO NOT HAVE IT ALL LAID AT THIER, OR HER'S/ HE'S FEET WHEN IT'S OUR TIME, BUT YET YOU HEAR SO MUCH CRAP ABOUT EACH COMPANY, WHOLE LIFE, THIS AND THAT. AND THE AGENTS ARE PUSHY. WAY!!! LET US KNOW HOW TO GET RICH OFF OUR OWN HARD WORKED FOR MONEY. IVE BEEN CANCELING SOME OF MINE. WHAT HAPPENS TO MY MONEY. ITS MY MONEY, AND I WANT WHEN I WANT IT!!!

What happens if you get the policy with the 10K premium and 90K PUA for the year, and you only add $20K PUA, do you get penalized? Or if the first year you are able to add the 90K, the second year you can contribute half of that?

i'm uninsurable, can i still do infinite banking?

Are you able to share the attorney Elizabeth’s contact info? I’m looking for a great estate attorney. Thx.

All debt is tax free 🤦🤦🤦

Outside United States, in Malaysia any company provide this type of insurance? I try to search, but can't find similar.

Appreciate the information that was shared.

Geez....get to the point.

sounds like The Ozarks😂

Let’s run the actual numbers… end of story. Lol

Good information!

It took this guy five minutes before he finally started explaining why whole life was a good investment. Editing.

You never mentioned how it can take 3-5 years to earn one penny in the CV part, and your saying you don't have to pay the loan you take out if you don't want to was not correct. There is a consequence if you don't. Nothing is for free. Also if I have to do additional things to combat the disadvantages WL has it would not be for me. Life insurance is to protect a family from the loss of a bread winner, and not a wise investment vehicle.
You will never get the rate of return that you would if you invested in mutual funds etc. Whole life is overpriced. Best in industry term life is the way to go, along with a good investment strategy.

It doesn't make sense for 99% of people unless they're already very wealthy and max out every other possible avenue. It's an incredibly bad rip off for most.

Great video thanks so much. Just to clarify one thing about MEC’s and its tax status. I think you didn’t want to get into the weeds on this one.
#1 taking the dividends is still tax free as long as you don’t exceed your cost basis.
#2 policy loans are still tax free as long as the policy loan is NOT greater than your cost basis.
#3 the 59.5 rule only applies if you trigger a taxable event on #1 and #2
I take it these statements are true; if not please inform me.

Really great video! Great strategies! Thank you!

Damn it man get to the point.

Great job! I personally know people who deal with drastic fluctuations in risky investments (nothing wrong there, but...) and stomach the market. Timing is everything with-the-market. Well, with this approach your money is literally safe, no market risk, comes with guarantees, consistent growth, protection for love ones, etc... I have stocks, bonds, mutual funds, real estate investments, plus more, but I also have Whole Life, too and it's a win-win especially with magic of compounding, tax treatment, freedom to access, living benefits, etc.

But, what are the fees?

Caramba utter garbage open an online investment platform and just by the s&p500 you wont make a fortune and no salesman will either but you will do a million miles better than a whole of life scam

WAY too broad to understand.

Such great content! Thanks for compiling this. How can I get in touch with this amazing Elizabeth? I'm looking to start a trust. Thanks!

can I get an intro to that attorney you referenced?

So with whole life insurance, are you able to set it up in a way where the beneficiary does not get the life insurance money and gets to extend it forward to some other person. For example, I get a life insurance policy and when I am no more, my kids have the option to extend the policy to their kids, my grandkids, instead of cashing out?

This was good. Thank you. Please do more videos on Whole life insurance.

I don’t understand how this is seen as legacy planning if wealthy individuals put more money into the cash value than they get from the death benefit. All the cash value is kept by the company upon death and your heirs only receive the death benefit. In this case, you lose money.

Buy Term! Invest the difference.

Could you discuss the risk associated with not being federally insured on a life insurance policy?

Interested in the lawyer Elizabeth you keep mentioning, what’s her contact information/social media info?