Finding successful strategies that strengthen your business can at times, be somewhat of a challenge. There is no blueprint for your exact situation, exact business model, or even exact timeframe in which you are operating.
Walt Disney, arguably one of the greatest entrepreneurs that lived, at one point didn’t know how he was going to keep his vision of Mickey Mouse alive. Ray Kroc, co-founder of McDonald’s, also experienced similar growing pains. The common thread between the two?
During times of uncertainty both men used the cash value from their Life Insurance Policies to keep their business afloat.
Are you an entrepreneur? Register for free now to gain unlimited access to the Entrepreneur 101 video series, learn wealth-building strategies, and receive a free business consultation with a Paradigm Life Wealth Strategist. Click here to register.
Successful Strategies that Strengthen Business by Using a Whole Life Policy
When a business owner chooses to use the living benefits of a Whole Life Insurance Policy, business operations can become easier. Whole Life brings:
A Whole Life Insurance Policy is like a super savings account. It’s an asset that protects your cash, earns you a steady rate of return, and gives you liquidity that can be accessed through a policy loan.
With Whole Life Insurance, policy loans are crucial to a business owner receiving tax-advantages. This is because when you borrow against your policy in the form of a loan, it is not a taxable event. This allows for business owners to flood their business with cash if and when it’s needed.
Staying Financially Prudent Through a Whole Life Policy
Because business owners (or anyone) who use(s) Whole Life Insurance realize their cash value comes from the actual money paid to the insurance company to ensure their death benefit; many become more financially responsible.
If a policy loan remains outstanding then the loan will eventually be paid off by the death benefit. However, if there are outstanding policy loans, then a policy owner can only borrow what left over cash value is available.
The difference between using a policy loan versus any other financing method is that the interest rate, which is typically lower than a bank’s. If you are using the loan to influx your business situation, the loan is not considered income – which means no tax.
Whole Life Insurance is the Foundation for Success
Whether you’re a business owner, or not, Whole Life Insurance is an asset that creates a solid financial foundation. If catastrophe strikes, a Whole Life Policy can provide a soft landing.
In addition to the security, a business owner can properly work their policy loans into their business model, so things can always be thriving.
Success starts with building upon solid foundations, and Whole Life Insurance provides that foundation.
Read: How to Permanently Strengthen Your Business
