First thing to know: Though all permanent life insurance policies render a cash value, not all policies are appropriate for infinite banking and retirement planning.
At Paradigm Life, we always focus on the best strategy that helps clients maximize the benefits within their financial position. But as agents, our main goal is to create life insurance policies that enlarge the amount of cash that clients utilize. While there are far too many agents out there that sell their clients what are called “Equity-Indexed Universal Life” (EIUL) policies, or any of the many variations of this, at Paradigm Life, we recommend “Whole Life” policies.
Before you consider purchasing an ‘Equity Indexed Universal Life’ policy, ask yourself these 3 important questions:
1. If in 20 years, the insurance company raises my premium will I be able to afford it?
2. How would I feel if my cash value declines or reduces to zero?
3. Am I okay with knowing that my death benefit will also decline or expire?
After evaluating your responses, you might be asking yourself why would anyone purchase an EIUL policy?
The answer is that just like any other financial product available to put your money into, each has a specific purpose. Not all EIUL’s are bad, but it’s rare that people get what they expect from them. Because a Whole Life policy is the only permanent insurance vehicle that can guarantee a fixed premium, guarantee cash value principle and growth, and secure a death benefit for the rest of your life, it is the BEST choice for infinite banking and retirement planning.
When it comes to choosing Equity-Indexed Universal Life policy or a Whole Life policy for cash value growth, it’s imperative that you meet with a qualified agent. The best safeguard against hidden traps within a permanent insurance policy is to understand the guarantees the policy can offer. The guarantees are the foundation to building a successful infinite banking strategy and solid retirement plan.
For more information on Whole Life and to request a consultation click here