Life Insurance is Like Real Estate

Do You Rent or Do You Own Your Life Insurance?

Deciding what life insurance to buy is like deciding whether to RENT or OWN your life insurance.

When you buy TERM life insurance, it’s just like RENTING. You get to live in the home for a fixed period of time. After that you either renew your rental lease agreement or you move on. All the money you pay each month for rent is all gone paying for your landlord’s mortgage and building his/her wealth.

 

When you buy permanent life insurance is like buying your own home.

When you BUY your home, you own your home for life AND you have equity.

When you buy PERMANENT life insurance, you own your policy for life AND you have cash value.

As the year goes by, your home EQUITY goes up in value. Same is true with your CASH VALUE in your life insurance policy. As the year goes by, your CASH VALUE goes up in value as well.

In time of need, you can borrow money against your HOME EQUITY for emergency, down payment for a second home, private school or college tuition, supplement retirement income, medical expenses, etc.

In time of need, you can borrow money against your CASH VALUE from your policy for emergency, down payment for your first home or a second home, private school or college tuition, supplement retirement income, medical expenses, etc.

Related article: Be Your Own Bank (B.Y.O.B.)

When you die, your family will inherit your home, equity and mortgage.

When you die, you family will receive the death benefit pay out PLUS cash value.

S.M.A.R.T. College Planning for a Debt Free Future

Are you concern about not able to provide for your child’s college education? Are you worry that you may have to take out home equity or personal loan to pay for your child’s college education? Are you worry that your child have to work during college to help pay for college tuition?

Cost of college is certainly a big concern nowadays. Most families do not have proper college planning. Most people focuses on saving for retirement and paying off debts, and only few plan for their children’s future.

College tuition, like everything else, has increased significantly over the years. In fact, cost of college goes up 6-7% every year. Currently in-state public school average $20,000 per year and private college average $40,000 – $60,000 for an undergraduate degree.

Did you know the average student takes 8 years to complete an undergraduate degree, which is usually a 4-year degree? That’s an additional 4 years of college tuition and 4 less years of potential earnings.

Most students change major about 3 times during their college years.

TRUE STORY…

The son of a friend of a friend. I hope we had help this family with college planning. The son of a friend of my friend went to college and graduated from medical school with a medical doctor degree. After all the years and money spent acquiring the medical degree, the son decided he did not want to be a doctor.

You would never figure out what he became…

…a Catholic priest.

The parents did not know if they should feel blessed or angry with their son’s decision.

 

Because of the indecisiveness, many students graduate from college with enormous student loans.

Did you know the average student loan today is $37,172 for an undergraduate degree. Student with a professional degree can easily end up with a $150,000-$200,000 student loan after graduation.

And many college graduates end up in jobs that’s not even related to their course of study because they NEED a job to pay for their living expenses and start repaying their student loans.

That’s what happened to my friend’s daughter who graduated with a fancy but obscure science degree that she cannot find a job for, so she’s now working for some insurance company getting $10 an hour pay, the same pay as my teenager.

Do you want that for your son or daughter? Is that how you want your son or daughter to start their adult life?

In fact, student loans have now surpassed consumer debts in US.

Related article: Student Loan Debt In 2017: A $1.3 Trillion Crisis

 

  • minimize out-of-pocket expenses
  • maximize free money and resources
  • savings growth rate to at least beat inflation
  • maximize income tax benefits
  • graduate on-time with the right major
  • “hide my money and look poor”

 

What You Need to Know About Life Insurance?

What is Life Insurance?

Do you have insurance for your homes? cars? Apple watch? MacBook? iPhone?

Great…

How about your most valuable asset? YOU!

Today, people purchase all kinds of insurance to protect everything from their house, cars, phones and appliances. They even buy travel insurance for their vacation.

Life insurance plays an important part in your financial plan…It protects against income loss due to disability, chronic and critical illnesses and premature death.

Uncle Sam Pointing at You

YOU!

 

Today, people purchase all kinds of insurance to protect everything from their house, cars, phones and appliances. They even buy travel insurance for their vacation.

Life insurance plays an important part in your financial plan…It protects against income loss due to disability, chronic and critical illnesses and premature death.

TERM VS PERMANENT LIFE INSURANCE

 

 

Which Life Insurance is Best for You?

That depends on your financial situation.

Related article: Best Life Insurance

Do You Have the Best Life Insurance?

Do you have insurance for your homes? cars? Apple watch? MacBook? iPhone?

Great…

How about your most valuable asset? YOU? Without you, nothing else matters.

Today, people purchase all kinds of insurance to protect everything from their house, cars, phones and appliances. They even buy travel insurance for their vacation.

So who needs life insurance?

Everyone. Everyone dies, unless you’re immortal.

I know, I know…life insurance is not a fun topic to discuss…or so you think.

Life insurance has evolved significantly over the years into a fancy gadget. It’s just like communication technology. We went from pagers to flip phones to today’s smart phones.

Today life insurance does more than just protecting your loved ones that you left behind. Life insurance nowadays have living benefits that allows you to have an additional stream of retirement incomes, pay for college tuition, vacation, pay for chronic illnesses, terminal illnesses and even long term care.

WATCH: The Swiss Army Knife of Life Insurance

Does Your Life Insurance Provide…

GROWTH

Buying a permanent life insurance is like purchasing a new home. It builds equity the moment you own it and continues to growth with each premium payment and market growth.

SAFETY

The equity (or cash value) grows safely each year without exposure to stock market or risk of loss. The equity or cash value growth tracks the particular indexes, such as S&P 500, Euro Stoxx and/or Heng Seng. When the stock market goes up the equity goes up to a certain CAP set by the insurance company. If the stock market goes down, the equity will go down but never lower than the floor of 0% or 1%, set by the life insurance company.

It’s important to remember that avoiding loss can be as crucial to your financial strategy as realizing gains. The best life insurance policy offers limited upside market potential with downside protection. Any increase in the policy’s cash value is locked in so earnings are not lost should the market falls.

TAX-FREE

The equity in the life insurance grows tax-free for the duration of the policy. You can take money out against your equity any time after the surrender period. Because this money is taken out as a loan, you pay no taxes on the gains. When you die, your family will receive the death benefit tax-free less any outstanding loan balance.

PROTECTION

The best life insurance policy also protects against all the what if’s in life. What if you die too young? live too long? become chronically sick or disabled? or become terminally ill?

If you die too young, your family will be protected for the next 10 years.

If you live too long, the equity in your life insurance can supplement your retirement income.

If you become chronically sick or disabled, the equity in your life insurance can be used to pay for long term care and provide supplemental income to you and your family.

If you become terminally ill, you can use the equity in your life insurance or part of the death benefit to pay for your medical expenses.

You see life insurance is not just life insurance…it is a versatile financial tool in any strategic financial plan.