Life insurance is such a misunderstood financial tool. I think the reason this is so is that the industry has done a pretty lousy job of educating consumers about it.
Many people only think about how the death benefit will not benefit themselves (they’ll be at the pearly gates – lol) because they are unaware of its many other benefits.
If you watch this 10 minute video, you will understand more about life insurance than 80% of insurance agents. I often do this “lesson” on a napkin, but this is much more professional.
After viewing it, you will begin to understand why 100% of my personal retirement savings goes into cash-value life insurance every year. Every dime. I understand (and teach) that, life insurance is more valuable to me… while I’m alive!
That’s right. I do not contribute any money to an IRA, 401(k) or anything like that. I get no current tax deductions. Am I crazy? Crazy like a fox.
Not that those retirement savings accounts are bad things to do. But you are not SAVING any taxes, you are only…. postponing them. But if you think tax rates are going to be lower in the future, take the tax deduction now.
I just choose to do something different since I believe taxes are going to be much higher in 10-20 years (given our $19 TRILLION dollars of debt and the way our government puts everything on their equivalent of a credit card!).
The country’s foremost authority on IRA’s is Ed Slott. He is a CPA. You may have read one of his books or seen one of his many PBS TV specials. He does not sell life insurance or any financial products. He says, life insurance is the “single biggest benefit in the tax code. Period.”
And if you believe that taxes are going to be higher in the future, why on earth would you want to postpone paying them at higher rates? Pay the tax now (at current low rates and known rates) and be done with it.
Now I do like tax-free ROTH IRA’s, but the IRS says, that like millions of Americans, I earn too much to contribute to one. Plus, the most anybody can contribute to one is about $6,000 this year.
However, using life insurance gives me much more flexibility, TAX-FREE access and control of my money — without any IRS contribution limits. In fact, as many of you know I wrote 2 books about it a few years ago. (you can find them on the BOOKS tab on this website and be directed to amazon.com).
CLICK BELOW to watch this interesting and educational video.
all the best… Mark