Powerful Cash Flow Resource

BALANCE RISK

Permanent Life Insurance was once the primary asset Americans owned for wealth building, savings and retirement. The value of life insurance was so vital to an individual or family’s financial worth, that it was weighed alongside home and business ownership. Life Insurance has the same incredible value today, but has become a forgotten asset that provides substantial opportunities to grow wealth. Why? The inflation of the dollar, central banking, and effortless money borrowing, have each contributed to the way society interacts with money for loss, not profit.

TRANSFORMING THE DOLLAR

One might remember the sweeping changes in the economy that paved the way for Life Insurance to become almost obsolete. When former President Richard Nixon (during his administration in the 70s) decided to completely move the dollar away from the gold stan­dard, financial products started dramatically changing. Sudden­ly the economy, with its complex evolution, became that much more complicated for the everyday per­son to understand. Employers were also moving away from pensions, which were (interestingly enough) executed through Life Insurance Annuities, and instead started of­fering 401ks. This move from pen­sions to qualified plans put the responsibility of savings and retire­ment into the public’s hands. Peo­ple began relying on Wall Street and financial planners to tell them what to do with their money.

DEBT’S OPPORTUNITY

During that same era credit cards became popular, ensuing a wide­spread pandemic of consumer debt. People began living financially dif­ferent. To finance large purchases, or any purchase, the motto was: no money down with low monthly pay­ments. Financiers started seeing the opportunity of wealth earned by interest and created ways for con­sumers to easily access money (the term ‘consumer’ now became how society was referenced). Ignorance, lack of education and the ‘Rat Race’ officially began.

It appeared that the only people who were not living knee-high in debt were those who seemed to un­derstand what others did not know about money. And in a way, those who were not shackled by debt did understand something differ­ent, they kept spending money on the right type of assets. Assets that would keep their cash flow going and their money working for them through permanent life insurance.

Correct financial education on what an asset is, and what it can do for cash flow, is the first step to increasing wealth. Many people think of life insurance to be just a death benefit. That is partly true - Term Insurance is just a death benefit. However, Permanent In­surance is different. It provides a death benefit and living benefits.

“AND” ASSETS

A FOUNDATION OF WEALTH

Here is another way to look at life insurance: if term insurance is on your expense report it is a liabili­ty – you’re not making any money back from it. Permanent insurance is the opposite of a liability - it is an asset that offers liquidity, savings, market security, and earns interest. Though Permanent Insurance is on your expense report too, your interest earning policy allows for you, as an owner, to take the cash value and reinvest in other per­forming assets, making permanent insurance an “and” asset.

Like the rest of us, banks and cor­porations strive to secure their cash flow though several different streams of income ranging from their core business strategies (domestic and international) to joint ventures, in­vestments (stocks, bonds, etc.), and real estate holdings. However, banks and corporations are subject to risk too, and realize the need to balance the negative side effects during an economic downturn. To do this, banks and corporations have used life insurance as their safety net.

For example, big businesses have realized it is important to be properly protected and well rounded. Life insurance allows for these tril­lion/billion-dollar companies to keep their bottom line thriving. Public for­tune 100 and 500 companies hold a large portion of their liquid capital in whole life insurance, from General Electric to Wal-Mart. Life Insurance is a unique asset that has inherent valuable traits that offer the same type of wealth building to individu­als like it does to businesses.

For individuals looking to build and keep lasting wealth, Permanent Life Insurance is a foundational asset that, if properly structured, creates an “and” asset. Your money, protect­ed inside of a policy, gives the policy owner a cash value. The cash value is what allows you to leverage your fi­nances into other performing assets to generate more passive income. This simultaneous protection and utilization allow for multiplicity of your money. Life insurance is meant to help supplement a person’s work­ing estate, not take away from it.

REALIZE YOUR MONEY’S

FULL POTENTIAL

 Entrepreneurs, families, and busi­nesses are always in need of ways to secure their bottom line and find cash flow streams. Permanent Life In­surance, as a foundational asset, can provide the opportunity to facilitate the use of creative cash flow streams. Its inherent qualities afford individu­als the chance to safely invest in oth­er wealth building opportunities.

 If you need money down on a rent­al property, borrow against your life insurance. If you are looking to start a business because of a passionate hobby, borrow what you need from your life insurance policy. This flexi­bility makes permanent insurance an asset the helps other assets thrive.

SECURITY, FLEXIBILITY

AND WEALTH

Knowing and understanding the valuable qualities of permanent insurance is what can provide the foundation for wealth. With per­manent insurance you are giving yourself security, flexibility, and true wealth. It is money working for you in multiple ways, not you working for money. This is exactly what banks and corporations do every day, and now you can too.