The Problem with Bank On Yourself

As Nerdwallet.com reports, “First there was LEAP, then there was Infinite Banking, also known as Becoming Your Own Banker.  Now it’s Bank on Yourself (BOY), with Pamela Yellen.”  In essence, here is what each of these different sales programs attempts to accomplish for the prospect by selling them a permanent life insurance: Save you money, …

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Evaluating Whole Life Insurance as any Good Investment: Life Benefits Christmas Gift for You in 2019

Investment grade life insurance is commonly sold as a solution to avoid the non-diversifiable market risk associated with investing in the market. The problem is that investment grade life insurance is basically a marketing gimmick which should alert every suspicion nerve in your body to its highest level.  Here are the reasons why: Life insurance, …

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Life Insurance Policy Loans and Withdrawals – how and when to use them

You may have the option of taking a withdrawal or a policy loan against the permanent life insurance that you own. That is because permanent life insurance policies can create surrender value.  Surrender value, commonly called cash value or accumulated cash value, can be withdrawn from the policy, borrowed from the policy, or used as …

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The Best Way to Pay Off a Mortgage

Many people believe that paying off a mortgage as fast as you can is the best way to avoid losing money to the cost of interest.  But with the new 2017 Tax Cuts and Jobs Act, the deduction for the interest that your home mortgage provides is not really an issue anymore because the standard …

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Budgeting Strategies… What Are You REALLY Worth?

Senator and presidential candidate Elizabeth Warren made the 50/20/30 budget plan popular in her book “All Your Worth”.[i]  In her book Warren outlines that you should spend 50% of your income to pay for things you absolutely need.  This includes: Housing costs Transportation costs Groceries, Clothing, and Utilities Insurance premiums Minimum debt payments on credit …

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CSO Tables…And What They Mean For You

CSO Tables…you won’t find these tables in any furniture store. CSO (Commissioners Standard Ordinary Mortality) Tables are produced by the Society of Actuaries and the American Academy of Actuaries, who work together to glean the data that provides insurance companies the necessary information to determine what reserves they need to keep in order to pay …

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Back to the Basics

Recently a southern state spent $214 million over a four-year period to hopefully improve the reading proficiency of fourth grade students. The results were dismal.  According to the Nation’s Report Card, only 1 out of 3 of this state’s students improved their proficiency and their fourth graders fell from 39th place to 47th place nationally.[i] …

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Fear, Greed and Commissions

A big complaint against life insurance is the supposed “huge” commissions an agent earns when you purchase a whole life insurance policy.  It’s been said that when dealing with money there are only two motives that drive your decision, “Fear or Greed.”  Those who oppose life insurance attempt to paint all life insurance agents as …

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Why Interest Rates Matter

Anybody can lend money, but typically lenders are banks, credit companies like Visa, MasterCard and American Express, or retail stores that offer an in-store credit card.  The rate of interest that is charged by these lenders can vary widely depending on the type of loan, the credit history of the person (business) applying for the …

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Direct or Non-Direct Recognition: What Difference Does it Make?

If, as an insurance company, I want to reduce my risk associated with providing loans to policyholders who leverage their death benefit to take policy loans, I have two options.  I can, Force all policyholders to assume the risk associated with someone taking a policy loan against their policy, as in non-direct recognition companies. Or …

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