Whole life insurance

What I also love about you is you have a high appreciation for life insurance, And I believe life insurance is one of the assets that actually helped make this tool possible because you practice what you preach from a standpoint of it being a foundational asset.

Listen, I would go on to say that I believe that it is impossible to reach your full financial potential without the acquisition of whole life insurance.

I love it.

I love it.

Welcome back to The Money Advantage Podcast.

Today we're talking about when can you start using your whole life policy, and we're gonna uncover the truth about policy loans.

This is gonna be a great conversation.

Bruce, I know that you and I have talked about this many times before, but I think it's always helpful to hear it from another angle.

It's because there is base premium and no paid-up additions.

So you're just putting a base premium into a traditionally designed whole life insurance policy, and this is why you might have heard of or experienced yourself or talked to a friend who said, "Oh yeah, I had whole life insurance, and it took me 20 years before I had anything substantial in the cash value from which to borrow.

I don't understand why you're talking about being able to borrow in the first 30 days or the first two years." That makes no sense to me because that's not been their experience with a traditionally designed whole life policy.

And this is where design does matter a little bit because it's not which policy is better ... whole life is excellent.

And so I thought this was kind of a crossover topic of what I'm interested in and what a lot of people listening to our podcast have probably come across in their lives, but don't know a lot about.

So there's a Category investments, investments in kind of air quotes called whole life insurance or permanent life insurance.

You know, there's a lot of different names for these policies, but the idea is instead of buying a term life insurance policy.

you can buy a whole and or permanent life insurance policy where there's not just the insurance cost, there's also an investment component.

And the reason why these things are sold, I think honestly is because the market asks for them.

Like a lot of times, I don't know if this is just necessarily a big evil company out there pushing these things.

So definitionally, people hate paying for life insurance because if we are self-interested, which I feel like a lot of us are, this feels like it's money that's just, you're never gonna see.

And so a lot of insurance companies saw that and they said, oh, well, why don't we create a product where, hey, you can pay premiums into this policy, but part of this premium is gonna go to an investment piece so that you will see some of this benefit.

He'd just been paying them.

But what I did know was thanks to my dad's whole life insurance policy, my mom got, she was able to benefit from that and have financial security for the rest of her life.

Right.

So it is important.

So, you know, there's a little bit of difference.

And I think it depends on, you know, having that conversation at a point in life that's early enough to see what I want to protect and then how to change that down the line.

So we do have term and whole life, both important.

You know, you're just kind of trying to figure out what you want to protect.

because you're getting safety.

So I think as long as everybody that's listening to the podcast today, as we're going to compare this to whole life insurance, is they understand the pros and cons of safety, liquidity, and growth.

And then as we've also started to teach our listeners is that no there are no exact solutions there's only compromises we're going to talk about the compromises along the way too and then you can help make those decisions either by yourself or with your professional that which components of the of any financial product you want and what compromises are you willing to make

Bruce, I love that just really well-balanced approach, but also I think it's always helpful to think of the framework of something whenever you're reading material and you're wanting to understand it or you're trying to understand a new concept to be able to fit it into a framework or a structure that you already know then be able to understand it from that vantage point is really helpful and I love that framework of safety liquidity and growth especially in the financial world it clarifies so much and I just love that you started from that because it's easier to understand the purpose of something when we come back to those come those elements those attributes safety liquidity and growth and how there's trade-offs rather than just explaining technical nuances or you know the all the different life circumstances under which somebody might choose to use an annuity or not it's really helpful to come back to the basics so thank you for starting there so bruce the main promise of an annuity is going to be guaranteed income for life or income for life and i think the purpose that somebody is going to kind of go towards an annuity or hear about an annuity with is going to be having an income stream where I, I know that I have this stream of income that I can count on.

I think our show friend, Dr.

Wade Pfau, who's been on the show a couple of times, has done extensive research on this.

And he actually has showed that there are – in most cases with most people's personalities, that a well-balanced income rider with the proper portfolio of an equity and with whole life insurance, you could actually come out on top.

And once again, I think what Warren's pointing out, fixed contract with a lifetime payout rider, whereas minimum interest rate is guaranteed to exist.

Thank you for having me.

Brock is a wealth strategist and a longtime member of the Lifestyle Investor Mastermind who has become one of my most trusted resources on dividend-paying whole life insurance.

I've personally used whole life insurance policies for nearly 25 years to store cash, fund investments, and create greater flexibility with my capital.

In this episode, you'll learn one, the incredible benefits and flexibility of using whole life insurance in your cash and fixed income portion of your portfolio, two, Two, how borrowing against your policy creates liquidity to quickly capitalize on new investment opportunities.

And three, how wealthy families use whole life insurance to build a family banking system and transfer wealth for multiple generations.

If you want access to today's show notes, including links to all the resources mentioned, visit lifestyleinvestor.com forward slash 306.

Thanks for listening.

Super cool guy.

And so it gives you optionality down the road.

If you do want to convert to a whole life policy, you have that in your health class stays the same.

What I think we're whole life comes in and I personally have a whole life policy.

And so I'll just give you my own experience.

I view it as, you know, a one of those break glass in case of emergency type buckets.

It's a zero-sum game where someone always loses.

Here's what whole life insurance does.

It protects both simultaneously.

You've been funding policies for years.

Most business owners think it's either or.

Protect the business or protect the family.

Whole Life Insurance says both and.

The cash value protects the business during your life.