In our previous discussion, we introduced the concept of investing your Life Insurance premiums into variable investments such as stocks, bonds, international funds and others. While it may seem appealing, some clients, like George H., are skeptical of such a program. After all, they don’t want to invest in a policy where they could stand to lose significant amounts of money and have that jeopardize their ever so important Death Benefit that is crucial to the survival of their business and family.
However, what ‘IF’ I said you could invest in a variable investment and ‘IF’ the stock market took another hard hit you would never lose a penny of your accumulated cash value? Would you be interested? I dare say that most people would be interested. This is exactly what is available in today’s marketplace and what we will discuss in the next few entries.
It has the best of all possible scenarios. It first provides the guaranteed death benefit, tax-free. In addition, the cash value accumulates tax-free. As I said in previous articles, it offers flexibility in that you can increase and or decrease your premium payments. Yet the most important part is that you can participate in the upside potential of the stock market and protect your monies from any downside risk.
Over the next few discussions we will dig deeper into this new concept.