Money-value life insurance is a little-known secret for real estate investments or for people planning their retirement.
Indexed universal life is the best vehicle for investment. Why?
As its name indicates, life insurance is a life insurance with a cash value. Similar to a savings account associated with your life insurance. The difference is that this "savings account" does not grow as part of life insurance.
This is the bonus for real estate investors. Short of money. Borrow your cash account without interest. How does it sound?
Let me clarify that a bit. Each monetary insurance policy is different. Most apply an interest rate for the loan. But some ask for more and others less. The one I have, charge 0.75% for the first 1-9 years, then 0% after 10 years.
The other thing is that when you borrow money from your monetary value, you do not withdraw money from your account, you borrow against your monetary value, which serves as a guarantee to your ready. This is an added bonus because your money continues to grow tax free while you enjoy your extra money without interest.
Another benefit associated with the loan of a monetary life insurance is that you do not have to pay back your loan if you do not want it. How? &39;Or&39; What? Good questions!
Remember that it is a life insurance policy. So, it also has a face value. Upon your death, the insurance will repay your loan at the face value of your contract.
Is not it a good idea? People still think that life insurance benefits the family only after its diet, but with life insurance market value, you should also benefit before you die.
Need help planning your retirement?
Many wealthy people purchase life insurance with monetary value when planning their retirement. Suppose you pay your insurance premium each year and you contribute up to the maximum surrender value each year for thirty years and you never have a loan. Now you are 65 and you are ready to retire. To date, your dollar value should have increased significantly over the years, without taxes. Now you can stop paying premiums because your monetary value is used to pay your premium and at the same time you pay money for your living expenses. Once again, this payment is made in the form of a loan. The cash value continues to grow while you enjoy your retirement and you do not pay tax. Do not forget that Uncle Sam only imposes incomes when you withdraw them, but not interest on a loan.
That said, you may be wondering what is the best value insurance?
I should say handily indexed universal life. It&39;s like the Rolls Royce of life insurance. What makes this policy so special is that your monetary value never loses money. The one I followed follows the indices of Europe, Hong Kong and the United States – Euro Stoxx 50, Hang Seng and S & P 500. As an investor, you probably know the risk of investing in the stock markets – the ups and downs. In this product, there is a floor of 1%, which means that even if the stock tanks, my return is always 1% and the ceiling is 13.75%, the maximum return I can get. I think it&39;s a very good deal because when you lose 5% in the stock market, you need a 10% return to recover what you lost. With this policy, I have no losses, only gains.
The only COUNTER: you must be qualified, which is healthy.