I love life insurance….
You probably don’t hear that much. Most people dread life insurance, but know they need it. So what’s different about me? I’d say I’m one of lucky one’s who has learned the “inside scoop” about life insurance, and how to use it for your benefit. While most people buy it all the same, boring way, I do it almost the opposite.
Today life insurance is the most important asset I own. I own as much life insurance as I possibly can, and can’t seem to purchase enough. Is it because I am so altruistic, and want to pass on a lot of money to family? Thats part of it, but I’m a little more selfish than that. It serves many purposes, but here are a few of the reasons I use it:
- Cash Value- I buy high cash value whole life insurance. By doing so, I actually have most of my money available day 1, and I can use it anytime I want. The cash value is safe, and grows very well. I can access this money any time I want to, and I have. I use it just like a bank. I borrow from it and pay it back. I’ve used it for cars, medical expenses, and I’ve even purchased real estate entirely from my cash value.
- Growth- With over 200 years of history, life insurance is one of the most predictable places to have money, and the growth is very competitive. You can read more about life insurance returns, and safety in our post about life insurance investing. The best part, however, is my ability to take those dollars and put them to better use (like my real estate) any time I want to.
- Death Benefit- There is not much more comforting than knowing my family will have what they need if I die. Even though I use this tool as a better way to handle our family finances, it also gives me the coverage I need, and it seems to be a bonus.
- Taxes- I do not like taxes…. who does? Life insurance is tax free and I can use it tax free. The death benefit then passes to my family tax free. It has the most tax advantages of any asset out there. That is exactly why big banks and corporations by it by the billions.