Lifestyle of the Rich and Famous

"Why is this one thing, allowing and encouraging freedom, but yet the whole of society, seemingly, is not?"

Lifestyle of the Rich and Famous

Life insurance is one of those strange things in our society. It literally creates money out of thin air for you. Your premium payments per month give you access to a tax-free, lump sum payout when you pass. Yet, no one's talking about why you get this free money.

Part of the structure of a Life Insurance Policy, is that you will never pay in more than what it's worth. Otherwise you will lose your tax advantages, and the policy will most likely get reclassified as an, MEC, or, Modified Endowment Contract.

This classification exists to prevent using life insurance as investment vehicles, by the potential buyer dumping lump sums into the policy for cash value growth. Now term has no cash value, but it's less than 10% that actually payout. Meaning most term policies lapse, and the client essentially outlives the policy.

So even in that case, term is cheap. You would never pay more than what you would get on the back end upon passing. Or you shouldn't anyway. But there are some cases, let's say if you waited too late to get insurance, the cost of insurance might nip you some.

But still, what is it about a life insurance contract that is so special that it can create money for you, often times than not, at a fraction of what it costs to acquire it. That's magic if I ever heard it. You pay in a part and get a large whole on the back end- Merlin at work.

The fact that we have access to that type of vehicle, and that more people are not getting into the life insurance game, is beyond me. It makes more sense to me to concentrate my efforts, knowing that the returns are guaranteed and the pay-in minimal in comparison. That screams power to me, especially when we are talking about financial freedom. You have to be zoned in on finding efficiency around every corner, and then capitalize on it.

What more an efficient means of utilizing your dollar than life insurance? And we are not even talking about IUL, and the hidden gems in that product. Just plain old life insurance. In my opinion it exists to serve those who know. Those who get served in the proper ways, those who do not, well, dont.

I could talk till I am blue in the face. I could show all the data in the world, and it still would not be enough to convince some people. Life insurance is the working of a mad magician. The one thing that only gets better as you age, crescendoing in the all might payout upon passing, the death benefit.

The very fact that the life insurance contract exists at all, to pay in excess what is owed, is the miracle. Around every corner there is some constriction in our society, some thwart to freedom. This thing, that tariff, this price blocker. Gotta pay to play in most cases. But why is that NOT the case with life insurance?

Again, you are getting free money here. Why is this one thing, allowing and encouraging freedom, but yet the whole of society, seemingly, is not? One can only speculate, but I can surmise that the rich and famous had something to do with it. In short, it was how they supported each other, in backrooms and silent dealings. Before insurance was even a thing the cronies who lobbied for its creation were doing it.

They just happened to turn it into a full blown business model, essentially opening up the possibility to others to access what they created for themselves. You ever notice that life insurance has a drab, albeit, boring undertone. There is never ANY talk about the freedom, about the free money that's being passed around here!

It could mean that they are not marketing it good enough. Or could it be that it is marketed just right. I think that the current status of life insurance is as it is because that's where they want it. Open source, because that's the system we live in, but with only a few people actually talking about.

We as agents, sometimes have to push people into thinking big, thinking about their freedom, thinking long term. Which is what a good deal of insurance as a strategy is about, the long game. Or at least a metered 7 year initial stretch.

One day maybe we will see past the subpar marketing campaigns of life insurance as a way into the real truth of what it is, a magic money machine. Until then, life insurance could remain that hidden gem in your retirement and life planning that could save you thousands, and create possibly millions for you over the life of that contract.