What is Whole Life insurance Plan

What's up, everybody? Rob Gill here from Epic Insurance Services. And listen, everybody's being bombarded every day with what kind of insurance to buy, whether it's term insurance or permanent insurance. What is a whole life insurance plan? We're here to share the facts with you, break it down and explain to you the importance of why it should be in the overall financial mosaic. So the first thing I want to talk about, Ed, in your opinion, what is the cash buildup value inside of a whole life policy and why is it important? Because I think if you begin to fund these policies, you could use the money over and over again, just the way the bank does when they keep loaning money to us left and right, and they get multiple uses of each and every dollar. For me, I would love all these people out here to be able to have the same advantages that the bank has. What do you think? I agree. I think one of the biggest things that we hear is, well, what about term insurance and what is whole life insurance, right? And the thing that people don't always understand about term insurance is it expires, right? It has a set termination date and if you live past that date, your family doesn't get anything, right? Said simply, it's meant to fail. And please don't take our word for it. Do your research. Term insurance 90% of the time fails. So the cash value buildup of whole life insurance is really one of the key pieces. Whole life insurance is meant to be there for your whole life, but it's not just for when you die. It's also living benefits, right? And that's what the cash value is. So as you begin to fund these policies and your cash value builds up, keep in mind it begins to be a phenomenal balance against your other portions of your portfolio, which are exposed to taxes, inflation, lost opportunity, costs, and fees. Once again, taxes, inflation, lost opportunity, costs, and fees. And if you don't know what that is, comment below and or reach out to one of the team members because that is the difference between good and great. Rob, there's some important things that people need to understand about whole life insurance. And the number one thing is all the guarantees there in whole life insurance, right? We have a guaranteed premium, which means when you start your policy, the cost of that policy is never going to change. You're going to put the same amount of money in for as long as you keep this policy. And that doesn't happen in the world of insurance, right? Term insurance expires. Our auto insurance goes up every single year. Our health insurance is always increasing. So this is a great benefit, right? The next thing is that the death benefit is there for the entire life of the contract. And lastly, there's guaranteed cash value, which we love. Yeah, so there's a guaranteed interest rate by state law and by contract, right? So you want to be able to make sure that you understand how this cash value really begins to complement your other investments. So as it begins to grow, tax-free or tax-deferred, you can begin to take it out later on in life, tax-free up to basis under the FIFO method of taxation. To maintain that tax-free status, what you would be doing is borrowing internally from the policy. This is another conversation that we could have privately. Feel free to reach out to us. When you begin to use whole life as a magnet against your other assets, what begins to happen is you're creating stability, leverage, liquidity, and control. And what Rob's saying there is that there are so many advantages on the tax side of things that people, you know, a lot of planners, a lot of advisors don't even talk about these things because they don't understand them. And that's why it's really important to work with a team that does understand these things. And the last piece that I want to talk about, Rob, in whole life insurance is dividends, right? What a beautiful thing to work with mutual life insurance companies that pay a strong dividend. Some of the companies that we work with have been around for how long? Yeah, I like since at least 1850. So for me, when we get into the space of mutual life insurance carriers, I want to make sure that they paid a dividend during the Civil War, the Spanish-American War, World War I, the Roaring 20s, the Depression of the 30s, World War II, the Korean War, the Vietnam War, the stock market crash of 87, the first ground war in Iraq in 1990, which, by the way, is when Chubb Rock jumped on the scene, the Asian contagion of 1997 when the Dow went from 12,000 to 7,000 just because that's what it did. March of 2000, when the government sued Microsoft and the internet stocks blew up, these companies paid a dividend. 9-11, which is considered a black swan event, just like Pearl Harbor, they still paid a dividend. 2003, the second ground war in Iraq, they paid a dividend. And guess what? In 2008, the Great Recession, they paid a dividend. And now as we get past COVID-19, they'll pay a dividend. It's an incredible history and an incredible story. And what's so beautiful about it is that dividend is going to help that policy grow. It's going to grow the cash values inside your policy. It's also going to grow the death benefit. And these plans, for as flexible as they are, and as great as they are, you really need to be working with a team that understands the complexities so they can help break it down, simplify it for you, and build the right plan for you. So like we always say, it's important to have a power team around you where all of the advisors are on the same page, whether it's the financial planner, whether it's the insurance agent, the trust officer, the accountant. If everybody's aligned for your benefit, and we here at Epic know how to do that, like this, in a turnkey approach. If you have any questions or you want to learn more, click the link below, and one of the team members will reach out and take you through that success process.