Life Benefits does not represent Bank On Yourself, but people often associate us indirectly because the concept involves using Cash Value Life Insurance to self-finance purchases.
Here is our response to a recent question regarding the article: Bestselling book’s financial promises don’t add up by Allan Roth on CBS MoneyWatch
I ran across this and it seemed “similar” to what you were talking about. Could you review this and explain why this doesn’t sound so good? Thanks.
Response from John McFie:
As Roth says in this article:
“I spoke with the insurer’s CEO, Jerry Stillwell, twice. While clearly an advocate for whole-life insurance and the financial benefits of borrowing against a policy’s cash value, he told me that “Bottom line, your numbers are right.”
The numbers seem right to me also, but I have 2 problems with this example which lead to a false conclusion:
See my Car Financing Video for further details on this example. After the Car Financing Example this video also has a $ to $ outlay comparison of Conventional Financing vs. Cash vs. Self-Financing with Participating Whole Life Insurance for a business purchase.
I have not read Pamela Yellen’s book personally but she is treading on dangerous ground if she is making the claims Roth says she is.
I fully agree with Roth’s takeaway:
“Whether financial counsel comes packaged in a best-selling book, delivered in TV homilies by some investment guru, or even dispensed in more personal fashion by a trusted advisor, beware of big promises with few specifics. The greatest risk in swallowing the latest financial elixir is wanting to believe that it will work.”
Many agents promote the concept(s) of borrowing from life insurance merely as a marketing/sales tool and use pie in the sky promises to make the sale. This is too bad…they’re giving a bad name to a very good idea simply because they’re trying to make it better than it is.
Hope this helps. Let us know if you have further questions and how we can assist you in Winning Your Financial GAME.