A Very Cool And Safe Way To Make Money!
You may or may not be familiar with how dividends are generated from life insurance policies, but did you know that almost NO life insurance companies will even tell you, much less offer, a certain type of whole life insurance policy that returns close to 10%, per year? These are known as participating whole life policies.
Really? Making money for yourself from life insurance? Without killing someone? I’m joking, of course but I’ve had people say things like ‘life insurance is boring. It’s morbid. It’s for old people. I’m not interested in that’. And I said to them, just let me finish telling you about it. After I’m done explaining, they realize they had no idea what its actually about.
Through something called Bank On Yourself, they are teaching people about the existence of this little known aspect of the whole life policy, that can be structured for maximum dividend returns. You make money, like you would with any other investment vehicle.
And, there are no other types of permanent or cash value policies that come with the level of guarantees and advantages as whole life insurance does, I’ve found out.
The only part that’s not truly guaranteed with many life insurance companies, is the dividend payout (which is why Bank On Yourself recommends using a company with at least a 100 year track record of paying them). There are literally only a handful of these companies, such as MetLife. Bank On Yourself only uses the few companies that have been paying out dividends regularly, without interruption, for over 160 years. Even during the Depression!
Why Do Most Insurance Companies Avoid Selling This Type Of Policy?
The answer is simple. The commissions paid on this type of policy are too low. Agents don’t want to push them because the commissions they’d be receiving are 50 to 70% less than what they make through Universal or indexed policies. Most insurance companies don’t offer this special type of whole life policy. They don’t even teach it in their training courses!
So, a correctly structured dividend-paying whole life policy gives you certain advantages and guarantees, more than any other type of cash value life insurance policy or traditional retirement savings account. And no two policies would be the same – you can custom tailor it to suit your particular needs or goals.
It’s kind of unbelievable that insurance companies either don’t know about this, or keep it hush, simply because they can’t profit enough from it. But that’s how it goes, companies do what’s most profitable for THEM, not always the customer.
What I personally like about this type of ‘investment’, which technically is not considered an investment by the industry, is, it’s a really safe way to park some of your money, AND receive dividends at the same time, which you can roll over and allow to compound. When the economy tanks and the markets go wild, an insurance policy will not be affected whatsoever.
Diversifying Your Assets – (Don’t Put All Your Eggs In One Basket)
Clearly, it’s a good idea to have a diversified investment strategy for your money. If one thing fails, you still have everything else. ‘Investing’ in an insurance policy is probably the safest, investing in precious metals is another. Finding a good hedge fund could be a 3rd option, (hedge funds trade the markets both up and down, thus balancing out losses).
Traditional funds that rely only upon prices ‘moving up’, are the most unreliable, and carry the biggest risk for loss. So finding ‘safe havens’ for your money is the way to go. A safe haven investment is one that remains pretty solid no matter what is rocking the markets, like interest rates being adjusted. Insurance policies are about as reliable as it gets, they remain ‘fixed’ no matter what.
Bank On Yourself has plenty of experience behind them, but they also have their detractors I’ve noticed, in researching them. Those criticisms usually come from other people in the insurance or financial industry who are pushing their own products and services. B.O.Y. has been in existence for over 10 years, with their ‘strategy’ for building a retirement account via whole life policies proven, and backed up by thousands of policy holders.
Who Are The Founders Of Bank On Yourself?
It was started by Pamela Yellen (no relation to Janet Yellen), and her husband Larry. Both had an extensive background in the financial world. They experienced harsh losses in the markets, like so many have. Pam learned about whole life policies in her research for alternative investment plans that would be safer.
So she wrote a book about this relatively unknown way to receive guaranteed dividends at a fixed rate, for life. (Believe me, RICH people know about it!) If you want to know more, see her book here. (I am not affiliated with B.O.Y. and receive no compensation for promoting them.)
Bank On Yourself has its own specially trained agents who are licensed to set up these unique whole life insurance policies with their custom constructed riders, that give you these great returns. As I’ve mentioned, having a life insurance policy with one of those venerable and established 100 year old life insurance companies, is about as close to ‘certainty’ as you can get. A whole life policy has a guaranteed, pre-set annual cash value increase, that you can count on for the rest of your life.
I opened an account myself, and I am just letting it compound, as I see it as retirement money for down the road. It is similar to having a 401K, only you structure it yourself, and it comes with many more benefits. (This is great for people who don’t have 401K’s through an employer).
And there’s a thing called ‘paid up additions’, which increases the value of your account. What you do is, use the dividends you receive to continually add on riders. This increases the cash value of your account. You can start with as little as 1K, and add more to your ‘account’ as you go.
Another Reason To Get This Special Whole Life Policy
One of the benefits of owning a whole life policy that is structured ‘correctly’, is that you can borrow against it, interest free. Depending on your account size, people have used it for loan money to buy cars, houses etc.
You are borrowing from ‘yourself’, interest free. Nobody likes giving banks a chunk of their money for the ‘privilege’ of a loan.
So How Much Can You Borrow From Your Own Policy?
You have the option of borrowing up to 90% of your cash value through any of your policy loans, any time and for any reason. The only questions you’ll get are how much do you want and where do we send it?
That’s because you are contractually guaranteed to be first in line to access your cash value and you cannot be turned down for a loan! You don’t need to fill out any credit applications or give up something as collateral. This is a feature many policy holders take advantage of. You simply pay back the loan in monthly payments as you would with a bank loan, minus interest. Pretty sweet.
There is so much more to this great opportunity, and I would urge you to have a look at the Bank On Yourself website. They also offer free, local to you, consultations. That way you can find out in person exactly what kind of ‘plan’ you could set up, to suit you. Again, I am not affiliated with B.O.Y. I am just a fan! It’s nice to share something like this that works and is ultimately, a very safe investment vehicle, so I’m more than happy to give a shout out to Bank On Yourself!
If you’d like, please leave a comment, or ask a question, I would love to hear your thoughts!