Let’s say that while you like
the concept of Whole Life Insurance because it accumulates cash value. However, you have difficulty in accepting the
higher premiums that’s involved. What
can a business owner do?
One program that I have
implemented with several clients is the plan where you buy a pure basic
protection Term Insurance policy and invest the difference into a Mutual Fund. Here is an actual case I worked on recently.
Nick R and his new bride
Kelsey, both 26, came to me for some financial consultation. One of their goals was to purchase a home in
4 – 5 years. [EDIT: We do always start with a client’s goals]. The premium for a Whole Life Policy was
$1,196. That was out of their price
range and also had a benefit of only $100,000.
So I offered a different consideration.
I suggested they purchase
a Term Policy of $250,000 which was more in line with what they truly needed. The annual premium would run only $130 a
year. The annual premium of the $250,000
Whole Life Plan would cost $2,990 for the year. So we invested for Nick in a
$250,000 Term Life Insurance Plan and the difference of $2,860 into a basic Mutual
Fund.
Nick and Kelsey liked the concept,
understood it, felt comfortable with both investments and took action on it. In
closing, let me add that my new clients liked and invested in what I call My
Trilogy Investment Approach. More about this Trilogy Investment later. It works
for them and perhaps this approach can work for you as a business owner.
Thank you for your time and attention and let me
also wish you and your family and friends a very Happy Thanksgiving