Front Loaded Whole Life Insurance Explained

[@BetterWealth]

Ready To Set up an And Asset? Talk with our Life Insurance Experts - bttr.ly/aaclarity Get FREE Overfunded Whole Life Insurance Education and Resources - bttr.ly/vault

[@markf.2050]

You show comparisons to a basic savings account, but you don't show comparisons to a serious investment account. Most people are interested in the growth of their funds, not in simply storing their funds. Using your example, they'd be better off storing their cash in a matress for the 1st 8 years than pouring it into a whole life policy. This whole life strategy would be perfect for someone whose goals are: Lose thousands of dollars in the early years. Experience pathetic growth in the later years of a fund they don't get to keep. Have a complex process of getting some of that money back as loans that must then be repaid with interest. Have tax-free growth of their cash value knowing they can only borrow from that fund and will lose it at death. Have a death benefit still at age 70 and beyond even if they don't need it but they paid for it anyway.

[@themillennialwealthcreator]

Fantastic training. Thank you for putting this together.

[@BetterWealth]

You’re 100% welcome! Thanks for this comment 😊

[@Mr.RobinsonLBC]

I am trying to build up enough to front load a policy like this... This would be a good financial vehicle to use towards retirement, where I can pay into the policy and pull out $50-60k a year in retirement every year after 65

[@lenering1084]

Please make a video showing how is a whole life insurance policy for people who don't have a lot of money.

[@RobertSutton-gb9ps]

That’s what I’m saying it just seems that all the videos about whole life insurance policy start off with people putting in more money than I have 50,000 star policy $100,000 policy. This video is talking about a 35 year old payment 100,000 for his first payment, I am 47 years old and 47 years. I have not met one person that has $100,000 to invest in anything.

[@Unicorn-Black]

Hi, thanks for this video, but I feel you are missing two very important things, and hope you can explain or post a video about them, 1. it is a bit unfair, or maybe not relevant to compare front loaded IB to saving, you should compare it to regular IB, where you keep your spare money in saving and use it to fill up the gap next X years - why ? because if one decides to do IB, he will need to decide front load or not, not decide if to do saving or front lod. if one he has 100K, he can decide to do 100K front load and 20 every year (from his income) , or do 30K every year (starting from year 2 use 20k from income) while keeping the 70k (left from the 100) in saving for one year and in the next year use 20k from income and additional 10k from saving and so on (you can find the optimum version maybe 40k every year is better) I would love to see that comparison, to decide if I want to front load or spread my 100k over the first 10 / 5/ 15 years, while keeping part of in my saving, compared to front loading it 2. there is missing line in your 12 items , which is the cost of using the money, IB has a 5% cost (loan) maybe - the earning div cost, and saving has no cost of using the money

[@BetterWealth]

I appreciate your in-depth comments Nir! In future videos, I will take your 2 points and try to better incorporate them into making my videos as compressive yet simple to understand.

[@gk_filer]

How much commission is paid out over time and what are the surrender charges?

[@bassgroove3861]

It takes 30 years to get to 4% interest rate and you think that is a win in the growth category for life insurance?

[@coryreedy2752]

Caleb, just out of curiosity, did you run this at like 70-75% PUA rider and 25-30% base?

[@coryreedy2752]

And on top of that, a massive term rider I suppose?

[@BetterWealth]

Yes this was a 70-30 in this examples with a term rider. Again not saying this is the way to do it just used this as example of our handbook.

[@yukoncornelius8438]

What are the advantages related specifically to the front loading of the policy though?

[@swhdent]

I can do this . Thanks

[@dailstancill720]

Tax-free part could be explained better. I get policy loans but your premium dollars are what compiled so when when you take a policy loan to access your money interest is being paid so not really tax-free totally or maybe fee-free. I've been searching for an actuarial explanation of how policy loans work and why "stealing the peas" is frowned upon on the front end but holy grail as tax-free retirement in the back end??? Yes, actuarial science can get hairy but it's what all life insurance is rooted in.

[@theforce5191]

I think the tax-free part has to do with the irr. In this example, 30 years later, he should have accumulated ~700k and @4% that's an extra 28k a year that isn't considered cap gains, so it's not taxed. That's what I think. I could be wrong

[@RobertSutton-gb9ps]

See what I mean I put my last comment up before I even watch the video but as soon as you start the video you’re already talking about front loading policy with $10,000 a year who has $10,000 a year to pay into an insurance policy or even 10,000 to pay in for premiumsnot trying to be disrespectful but if I had that type of money to pay into a whole life insurance policy, I will already be in a position where I want to be it just seems that when y’all talk about all these different policies and stuff y’all talk about people that already have money, not people that are struggling trying to get to money

[@RobertSutton-gb9ps]

If I had $100,000 to pay in for my initial payment payment, I would already be where I’m trying to get to

[@gk_filer]

OK But The dividend returns are buying more insurance only. The Cash value is only to borrow from . You only get the value of the policy at death not the cash value When you borrow from the account the dividends payed back get reduced Why not use a Brokerage IRA money market (Tax free growth) they are paying 4.5% for an emergency fund Latter Multi year Guaranteed annuities (Compounded Growth) pay 4.75% and you can take out 10% a year Buy a term policy much cheaper and invest the money 8 year delay in dividends is paying the up front commission Not a fan. I don't get it

[@sahmeerodies1686]

I think I’m confused on why put all this money up to have more cash value that you can’t take out, but can loan against, Rather than put the money in the S&P 500 and take a loan against that if needed

[@sahmeerodies1686]

Wouldn’t getting term for far less and investing be better?

[@Rshen11]

​@sahmeerodies1686 so you have your money working in both places.. Getting uninterrupted compound returns with no risk. In the policy plus death beneifts tax free.. And you can invest in s&p at thr same time..

[@Rshen11]

​@@sahmeerodies1686term is a 99% no pay pay out.. 99 % of people who buy term live past their term.. term is basically a risk free sale for the company..

[@bassgroove3861]

How much money do you have at 30 years if you just invested in SP 500 Index with all of those premiums?

[@Rshen11]

What happens if you die before 30 years..

[@RobertSutton-gb9ps]

Wait, we’re taking a 35 year old that is putting in $100,000 starting over who at 35 years old has $100,000 to make his first initial insurance payment. Please introduce me to not trying to be funny. I am being so serious. I want to get a life insurance policy. I am actually working with the infinite bank illustration, but still not convinced before I sign policy I need to see how this works for somebody that makes my type of income.

[@marioandultrachap]

Yeah what bothers me is this suppose to help save and grow money yet I gotta lose money for the first 3 years or more that I could of use to invest in something else.

[@ScottKath-Oceana]

Awesome !!! ❤

[@BetterWealth]

Thank you Scott!

[@eliphashashikutuva608]

Hey just wanted to ask is there life insurance available for business owners that don't live in the US and are not any type of resident,visa or no citizen.But have a online business in the United States.

[@BetterWealth]

The short answer is maybe and it depends. The best thing is for you to talk to someone on our team who can see if you can qualify for this. If your interested send me an email at [e-mail]

[@jacobzelasko1162]

Why is the maximum premium 20k after the front loaded yr 1?

[@GabeGuzm]

Because there's whats called a MEC or a Modified Endowment Contract. so, his front end might have been $100k, but his actual annual premium might have been lets say $18.5k but he can actually put in $20k to overfund it... But, if you let's say add an extra $1,000 to make it $21k the IRS comes knocking and says, "Ugh Ugh! We know exactly what you're trying to do, and because you went over your premium limit we're now going to tax any cash value inside of this account as income." That limit doesn't have to be $20k though. You can MEC a $1,000 annual premium buy going over as well.

[@Mr.RobinsonLBC]

Can you please send me hard copy info regarding this account and how to open it with your company? I live in California, Los Angeles... Do you accept clients in my area?

[@BetterWealth]

Hey! Yes, we have clients in all 50 states, so we definitely could help you. For further education and resources, I would go to our vault which has all the educational resources you would need! The Vault - bttr.ly/vault

[@BetterWealth]

Additionally, we'd be happy to answer your questions in person if you'd like to set up a meeting here - bttr.ly/aaclarity

[@BetterWealth]

And finally, I actually have a book that goes over how this all works, called, "The And Asset". If you ask about it in our meeting we can get you a copy!

[@KG-wh8yv]

How is this better than 3-month Treasury's at 5% Annualized ? Your Cash Value is about 25-30% less than Treasury's from day 1. Are Treasury's going to stay the same no. But still if you are retiring in the next 8 years this looks terrible. Maybe if your 25 years old.

[@ak0521]

Treasury interest is taxed so 5% gross could become 4% net. 4% irr in life insurance cash value is tax free. Plus you get all the additional benefits of the insurance as stated. Yes since this is a long term strategy for savings, someone near retirement needs to figure out if they can wait for the breakeven. But again they still get the insurance benefits.

[@KG-wh8yv]

@@ak0521 Even using 3% Treasury's TAXED at 20% every year, I am way farther ahead even in year *10* . This just doesn't make sense for someone near retirement (less than 10 years) And that $ is already taxed so I can use it anytime for any reason (vs. the loans in LIRP ). Again this may be good for much younger people or low rate Interest environments. LIRP's do offer Asset protection from creditors though and legacy tax free. And of course the death benefit is there and has to have some cost to it. So I guess it depends on your individual situations.

[@RobertSutton-gb9ps]

But why do you always say clients with? How about clients that are broke not trying to be funny but I can afford about 5000 a year 400 and maybe $420 a month. How about showing how a person with that type of income can use any of these products it just seems like every time y’all talk about infinite banking or whole life insurance policy or any type of policy you start off with premium of $50,000 a year or somebody that already has How about somebody that has no How about somebody that works a regular 9 to 5 and comes home with about maybe $1200 a week

[@jorgevelasquez9955]

So why do you guys always use a 35 year old? Don't you have older viewers like me,67, trying to understand if LI. can work for older folks? It appears not really.

[@olababs2048]

The realistic is that older folks like 67 there's little one can achieve with that base on cost of insurance and even qualifying for the products. I think that's why they don't use older folks

[@d3wdman567]

Buy a mastermind? Huh?

[@RobertSutton-gb9ps]

I’m sorry, but I cannot watch this video. I still cannot get past the fact that you were showing us a video of a 35 year old man that put $100,000 for his first and then repayment please make it more realistic.