We’ve been told for years by millionaires, if you want to get wealthy buy assets and reduce liabilities, but what does that really mean? How do you successfully acquire assets that increase your bottom line while still trying to keep everything else financially afloat?
The secret to asset acquisition (that the wealthy seem to fully understand) is through Whole Life Insurance.
Because assets tend to be associated with stocks, real estate, business ownership, or home ownership, many middle-class individuals don’t realize that Whole Life Insurance – and only whole life insurance – comes with inherent cash value qualities that help you build wealth, i.e. buy assets.
This is what wealthy individuals understand about whole life: it’s a strategy that uses interest and leverage to their financial advantage.
It’s Because of the Cash Value
Cash Value life insurance means way more than providing your heirs with a death benefit, it means you are providing you and your family with the living benefits that build wealth. Properly structured Whole life policies that carry a high cash value earn interest, grow tax-free, provide liquidity, and never depend on how well the stock market performs.
Because of these features, those individuals looking to build lasting wealth, can efficiently do so by using the cash value to invest in other performing assets, like real estate, the stock market, or a new business.
When you use your cash value to further your financial foundation instead of cash sitting inside a traditional back account, you’re capturing the opportunity cost of money.
While investing in things like Real Estate, for example, with the liquidity from your policy, not only are you acquiring an asset, but you are simultaneously earning interest on your whole life policy.
The use of whole life insurance to acquire assets while also earning interest is how individuals change their financial situation and personal economy permanently.
Whole Life Provides Safety while Investing
Cash Value life insurance offers financial safety to invest in other performing assets. For instance, you want to get into Real Estate investing, but lack capital and experience, your cash value invested gives you a cushion for error.
If something were to go financially awry with a Real Estate deal on the table, you have the peace of mind knowing that because you used your cash value, you are not obligated to repay burdensome debt issued by a creditor.
Cash value life insurance prevents those trying to build lasting wealth from making expensive and sometimes irrevocable financial mistakes.
Whole Life Insurance is an Asset
Even if you behave conservatively with your money and focus on accumulation only, building a savings or nest egg inside a whole life policy gives you more for your money as it earns a steady rate of return.
But if you’re looking to aggressively grow your assets, Whole Life Insurance can give you the capital and protection you need to reach your goals of financial freedom.
Do as the wealthy do, use Whole Life.
For more information on how Whole Life can enhance your financial plan, visit Infinite 101, Paradigm Life’s Elearning platform.
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