What Are The Benefits Of Purchasing A Whole Life Insurance Policy?


Welcome back friend. Kris Krohn here and
today, I want to talk about kind of an interesting question. Can you become your
own bank? Now, I know that’s gotta sound a little bit weird but today we’re
actually talking about the merits of whole life insurance. And a lot of people
think, “Oh, yeah. I don’t know if I want to watch that video. That’s all about
investing in your death.” But I think today, you’re going to find that there’s a
ton of benefits in life. I call them living benefits that you actually get.
And for those of you that are part of this channel because you’re an investor
or invest in real estate or you’re trying to manifest the life that you
want financially, I think you’re about to become wildly surprised at a tool that
many of the elite and wealthy leverage that most other people don’t even know
about. Okay, joining me back today is Rob Gill
in the house to help me have this conversation because we’re talking about
leveraging life insurance in a very, very different way. I think most people
typically think, “Oh, life insurance or a whole life insurance policy is all about
well you put money in this thing and then you know, then you die and then your
family gets a benefit.” And you know, that sounds a whole lot like term insurance.
But there’s actually a specific type of whole life policy. Not in general. But
there’s a specific type of whole life policy, Rob that has all sorts of
additional benefits and living benefits that I think business owners and real
estate investors and anyone that wants to become more financially savvy needs
to know about. So check this out. Benefits. First of all, what is what is the whole
life insurance policy? -It’s a contract between yourself and insurance
company. Typically we have 2 mutual life insurance companies because
we want to make sure as our cash value grows, the money you put into the policy
where you get a guarantee rate of return of 4% by state law and by contract. Plus
a non guaranteed dividend. So we want to make sure that as your money is growing
in there when you decide to utilize it for other opportunities. You could borrow
from your policy. Go buy let’s say a piece of real estate and your cash value
is still going to earn the rate of return. -Okay, pause. I think this just went
over some people’s head. I want to make sure you actually heard and understand
what Rob’s actually talking about here. This is a type of life insurance policy
that when you’re putting money into it every month, there’s a portion that goes
to your death benefit. So if you die, family gets inheritance money. -Absolutely.
But there’s also a portion of it that is actually a living benefit that builds up
kind of like a bank account. And you’re saying that there’s a way to pull that
out and use it for investing or living or building a business or whatever
person chooses? -Yes. Absolutely. So, if you just funded a
policy from age 30 to 65 and retired, you can use that as a retirement supplement. However along the way, what Chris is discussing is using the cash value. Once
again, after you do all your homework, you dies across a tease. For alternative
investment strategies. So, while you’re planning for retirement and now becomes
a Swiss Army knife because now you could use the the money for other investment
opportunities. And now, the same dollar if properly designed can be earning to
rates of return for the same dollar while having
protected. -Pause. Time out. Okay. So, this is really important because I’m going to have
you write down if you’re following along. There’s a couple of key things that are
so important. And you need to understand that not every whole life insurance
policy does this. There’s a link in the description below if you want to talk to
the team that can actually expose you to those type of whole life insurance
policies. The bottom line is it can often be one of the best tools to actually
give you that versatility, that Swiss Army knife. So, first of all, you just said
when you put your money into it, you’re mentioning that there’s a guaranteed
dividend rate… -No, no. Let me correct that. If you don’t mind. You have a
guarantee rate of return. -So, you have a guaranteed rate of return and separate
from that a non guaranteed dividend. -Okay, so there can be dividends?
-Yeah. -So, in other words, you’re actually making… You’re actually making
money on your money being in there? -Absolutely. -I got to tell you. -Over the
life of the country. -But my money in a bank, they’re going to pay me maybe like
half a percent or a quarter percent or a tenth of a percent. -And you’ll get taxed
on too. -And then how’s this different? -Well, because this it’s an insurance
contract. So, this goes back to when taxes were created in 1913. Because the
insurance industry was around since we were coming over from England. And when
people got on boats coming over from England, they had life insurance on the
boat. So, that’s when the insurance industry was created. If we want to get… -Bit of the history lesson. -Absolutely. -If you want to get deep, it’s
they have more people in Congress right now than got a shield in this product as
of today okay. I could always change from being invaded from the
confiscatory nor nature of taxes from the U.S. -Okay. So, there’s a couple of
things we’re about to stack up but just to be clear you had mentioned like a
4%… -Guarantee by state law and by contract. -There’s a 4%. And
then on top of that, there’s a dividend. -Yes. -That already outweighs what you
could get out of a like a basic savings account. Then it’s tax-free as like as
like a second bonus. -So, when it comes to the tax side of it, once you start taking
distributions, it’s tax free up the basis. And then to maintain that tax-free
status, this is simple mechanics. You would borrow from the policy to maintain
that tax-free status. Then I actually can grow it tax-free with those limitations
that you shared. -Yep. And then as a kicker, I can actually keep and maintain the
policy. But pull certain amounts out… -You can. -That I can then use for… I could
buy an investment property with it.=And have the rental head back. -Okay. I’m
loving that. And that’s what you’re meaning by having your money sitting in
more than one place at once? -So, let’s play with this a little. -Okay. -Right now
conceptual, everybody. This is conceptual. -This goes over your head, you got to watch
this again or in the least, you got to actually we’re talking about how you
actually set yourselves up for more success. I’ve been engaging with these
particular types of policies now for the last 12 years. And they have helped me
invest in real estate substantially and do a number of things. So, I really love
that the conversation that we’re having so much so that even though I’ve only
found a handful of people over the last decade that I trust to put the proper
policy in place, if you click the link below and get in contact with the
team there, you’re actually going to learn about those policies, how to
leverage them and they could end up being one of the most perfect tools to
sync up with your investment strategy in the future or your plan. So, you make sure
you that you do that. But yes, let’s go deeper play. So, hypothetically speaking…
And this is just an hypothetical. So double check everything. But if you were
to buy a piece of real estate, the goal is to get 4 rates of return. Cash flow, mortgage interest write-off, depreciate the asset on your tax return.
Right? So, let’s just say against your regular income. -Yes. -And eventually over
time, historically speaking, it should appreciate in value. -Yes. -4 spends. Now,
right? -Okay. -So, as you’re building up cash value and you want to now use that money
so you would borrow from the insurance company. We don’t know what that
rate is that’s another conversation. We could talk about. So, you borrow from the
insurance company. You buy the real estate. You then have the rent or pay
back the policy. So you’re still getting those 4 rates of return inside the
real estate. But now you’re still picking up the dividends and interest inside the
life insurance. But there’s one more thing. You’re now becoming a bank in the
sense that you paying yourself interest. -Wow! Dude, okay. Listen, you heard it
here. That’s why we put it here. That’s that mic drop. Kaboom! Dude, thank you so
much for sharing that Rob. That was just… That was money literally. actually could
be in your pocket money. And guys, this whole idea of the benefits of perching
whole life insurance. Hopefully that over delivered on. “Oh, my
gosh. I had no idea that all those different possibilities in benefits
actually could all breakdown happen all at once. And that’s why I’ve been
leveraging this teamed up with real estate as a part of my more
sophisticated real estate plan.” And so man thank you for being here. And if I
could add one thing. You’re always talking the importance of long-term. This
isn’t something that happens overnight, right? This is always a long-term part of
a conservative overall planning strategy. -Yeah. -Just that throw that out there. So
you know, I make sure everyone’s on the same page. -Excellent. Well, listen. Rob,
thank you guys so much for joining today dude. Appreciate it. and for those of you
that are watching, if you’re like, “Wow, I wonder if that’s for me. I wonder if I
should learn more about that. I wonder, I wonder, I wonder.” If you got questions,
click that link below. Get with the team and then learn what that might look like
for you. In the end, I think that you’re probably going to be thanking me and so
happy to generate this value today. Also friends make sure that you do subscribe,
ring that bell and then tomorrow I got a brand new video coming your way.

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