Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Good morning to all. Craig Shillig here and this is
Safe Money. I'm here every Saturday to talk with our
listeners about financial strategies we use to manage and protect
assets safely. I've been an insurance agent for over twenty
four years. During that time, I've learned a few insurance strategies,
like using annuities as safe money harbors, or using cash
(00:22):
value life insurance to supplement retirement income. Just a reminder,
you can call our office at five six three three
three two two two zero zero if you'd like to
enroll into one of my virtual Medicare community meetings that
I do via zoom. I give those I give two
(00:45):
every month, usually on the third week of the month,
every month of the year. Or you can email me
at Craig at Craigshillig dot com. That's c r a
I G at c r aig s c h I
(01:09):
lllig dot com. Today, I want to talk to you
about the many uses of cash value life insurance. This
is kind of considered the Swiss Army Knife of financial products.
The utility for this type of product can't be measured.
Today we're going to talk about cash value life insurance
(01:31):
and how it can not only help protect your family
or business, but how permanent cash value life insurance can
be used throughout your life. Permanent cash value life insurance
can help protect your family or business, but there's actually
so much more to it than that. If you're only
familiar with life insurance for its death benefit, you may
(01:53):
be surprised to learn about the many living benefits a
cash value tract can offer you, especially if you leverage
the cash value that accumulates within a permanent cash value
life insurance policy. You may be surprised to know that
a cash value life insurance policy accumulates cash value that
(02:17):
you can access at any time, for any reason, and
in most cases income tax free. Remember this if you
forget anything else I tell you today. Cash value life
insurance grows in value every single day. They also have
contract features that help keep the contract in force. If
(02:39):
you become sicker, hurt, and can't pay the premiums, the
insurance company will pay premiums for you until you recover
and return to normal working status, or until upon your death,
and then they would pay the death benefit amount to
the beneficiaries that you designate. Now, please remember this is
(03:03):
life insurance, so your retirement account's not going to do
that for you. Here's the question to ponder your thoughts.
Can you contribute to your retirement account while you're sicker, hurt,
and not earning an income. Think about that for a minute.
The answer to that question is no, because you need
to have earned income to make retirement contributions. Under IRS code,
(03:29):
cash value life insurance will continue on and grow in
value while you're sucker, hurt and not earning an income.
Many life insurance contracts today offer a long term care
writer or a chronic conditions writer that can be attached
to the policies in case you may need monies for
(03:50):
custodial care, ian home or assisted care, assisted nursing home care,
or even nursing home care. Another feature that your retirement
account won't offer you is that and that money that
you're using from your cash value life insurance is free
and clear, tax free. There's no ten ninety nine created,
(04:11):
and there's no taxable ramifications from those uses. Your retirement
account doesn't have a feature like that either. Your only
option is to hit withdrawal of the money, and you're
never it's never going to be the right time to
make that withdrawal. Plus you'll never recover once upon you
(04:31):
direct them to sell those shares. Cash value. Life insurance
provides protection for your loved ones, But there's really so
much more to it, and this so much more is
all about you. You can access the cash value whenever
you'd like that, maybe soon. Maybe it's to start a business,
(04:54):
help pay for college. If it would be later, maybe
it would be to supplement your retirement income accounts. If
it's much later, it may even be to leave a legacy.
Let's walk through some examples to inspire you. We're going
to talk about soon later or much later, So we'll
(05:17):
talk about soon first. Maybe you want to buy a home.
Maybe you want to become an entrepreneur and start a business.
John F. Kennedy said that life insurance companies have a
pulse on the small business owner and how the economy
is really doing. Maybe you want to pay for loved
ones college education. Maybe you want to fill in an
(05:41):
income gap. Maybe you want to supplement your retirement income
during a market downturn. How about cover unexpected expenses. Maybe
you have a repair on your home, Maybe you have
damage and need you have to cover a home owners deductible.
(06:03):
What if you have to replace a car. Maybe you
have a emergency trip for a loved one who lost
their life i e. A funeral. Perhaps you want to
leave a legacy. Maybe you want to transfer wealth. Some
of us may have a philanthropic bone. What if you
(06:23):
want to give to charity. There's so many other things
that we can't foresee now that you can use these
types of contracts for. One way to enhance your retirement
strategy is to leverage the cash value in your permanent
life insurance contract. I'll show you a couple of ways
we can do that. Why would one consider permanent life
(06:46):
insurance as a source of retirement income. There's several reasons
for that. To consider adding a permanent cash value life
insurance policy as a source or your retirement income would help,
including it's not subject to IRIS retirement contribution limits, so
you can put a lot more in there if you're
(07:08):
a high income earner. There's no top end limit on that.
The policy values are protected from any market downturns. Your
cash value life insurance policy doesn't care who's in the
White House. How's the stock market doing today? Is it
up or is it down? Your cash value life insurance
doesn't care cash values in your policy grow tax referred
(07:33):
and can be accessed income tax free at any time
for any reason. You don't need to get permission from
your local banker for a loan. You don't have to
ask your tax advisor what the tax ramifications of this
withdrawal would be. You just sign a form, they send
you a check. With technology today, sometimes I can get
(07:56):
a check to my clients in less than forty eight hours.
Taking cash value from your policy doesn't affect your tax
bracket or if you would have any taxation issues with
your Social Security benefits. Cash value is not subject to
rmds known as required minimum distributions. Over seventy the over
(08:21):
seventy three crowd understands exactly what I'm talking about here.
You can access a portion of your policy's death benefit
in the event of a serious illness or a custodial
or long term care need. Let's talk about diversifying your
retirement strategy. Let's add some diversification diversification to your retirement
(08:44):
with a tax free income source. So let me give
you an example of tax diversified income. Let's say you
would draw a fifty thousand from a mutual fund in
order to take that withdrawal, you're going to have to
pay a capital gains tax of about seventy five hundred dollars.
What if you want to withdraw fifty thousand dollars from
your four one K account under that scenario your ordinary
(09:08):
you're gonna pay ordinary income tax of around seventeen five
hundred dollars estimated. If you want to take a fifty
thousand dollars withdraw from your life insurance contract, that's free
and cleary tax free. There's no tax ramification there. Cash
value life insurance is a safe money harbor. You may
(09:31):
have heard how important it is to diversify assets in
your portfolio, but did you know it's just as important
to diversify the taxation of your assets. Diversifying retirement funds
across taxable, tax deferred, and tax free buckets helps minimize
the impact of taxes on your overall portfolio. Let's talk
(09:54):
through a hypothetical hypothetical example to help bring this idea
to life. Let's say you have one hundred and fifty
thousand dollars annual drawl and a retirement account in a
typical non diversified retirement income plan. You'd pull that money
from your four O one K, which represents a tax
deferred bucket. After paying ordinary income tax at let's just
(10:19):
call it thirty five percent, and the capital's gains tax
at fifteen percent, you'd have in the end there ninety
seven five hundred dollars left of net income. Now let's
look at how this could be different in a tax
diversified retirement income plan. In this scenario, we'll split the
(10:40):
withdrawal evenly between three different buckets. So I'm going to
take a taxable bucket, we'll call that your mutual funds.
I'm going to take a tax deferred bucket, we'll call
that your four to one K, and I'm going to
use a tax free bucket that's from using cash value
life insurance. So I'm going to take fifty thousand dollars
(11:01):
out of each bucket, the taxable, the tax deferred, and
the tax free. In this scenario, we're reducing ordinary income
tax and capital gains expenses because I only have to
take one hundred thousand from the taxable and the tax
deferred asset bucket. This means your total net income is
(11:23):
about one hundred and twenty or one hundred and twenty
five thousand, dollars or twenty seven five hundred dollars higher
than in the first scenario I gave you that was
around ninety seven five hundred. This is a benefit of
adding a tax free income source like cash value life
insurance to your retirement plan. This will help you protect
(11:47):
retirement savings from market volatility. Life insurance can also help
protect your retirement savings from market swings that we can't
foresee right now. If you take withdrawals from a market
based account during a down market, your retirement funds will
deplete much much quicker, and it will be very hard
(12:10):
for you to have enough time to make those shares recover.
This is also known as the sequence of returns we have.
You can talk to your financial advisor about it, but
ask them what sequence of the return is, and you
can take several hypothetical examples of taking withdrawals during certain
(12:33):
periods of market time. The sequence of returns is what
can either make or break your overall retirement plan, so
keep that in mind. This is where cash value life
insurance comes in. In addition to death benefit protection, cash
value dividend paying life insurance can provide cash value that
(12:54):
will grow tax deferred. You can use it as a
source of tax free retirement income. It's protection for you
from market fluctuations. You can take income from your cash
value life insurance policy during a down market instead of
pulling money out of your other investments. By doing this,
(13:19):
you're giving those investments time to recover much more quickly,
and maybe you can get back to where you were
before the market downturn. One of the greatest threats to
your retirement account balance is selling the shares when the
stock market is falling. You're basically slicing yourself off with
(13:40):
the knees and you're not going to be able to
recover this, especially if you're in your mid to late
sixties or early seventies, because you won't have enough time
to recapture that. If you've got to tap that bucket
during a market downturn, you're going to need to sell
(14:02):
more shares. In a positive one, you'll need to come
up with cash you need. Compounding this issue more. The
more shares you sell today, the fewer shares you have
left to take advantage of during an eventual market rebound. Consequently,
you'll take withdrawals from market based accounts during a down market.
(14:25):
Your retirement funds will deplete much more quickly, it'll be
harder for you to recover. This is where another space
where cash value life insurance fits in perfectly. You can
take income from the life insurance policy during a down
market instead of taking income from your investments. This will
(14:47):
then allow them to recover much more quickly, and it's
a great way to leverage your assets, especially during a
market downturn. You can add flexibility to your college funding strategy.
Life insurance can also help support college funding. You can
leverage a life insurance policy to supplement college funding strategies
(15:12):
that can not only close the savings gaps, but can
also provide a source of funds in the event of
a premature death. Plus cash value life insurance can be
used to pay for non educational expenses or fund other
schooling options. While both permanent cash value life insurance and
(15:34):
a five to twenty nine plan can provide benefits for
college funding such as tax deferred growth of values, distributions
during lifetime is generally non taxable as income, and they
can be used or transferred to benefit multiple children. Leveraging
(15:55):
permanent cash value life insurance as a college funding source
provides the ease additional benefits. There's no ten percent withdrawal
penalty and no restrictions for non educational expenses. If you
become sick or hurt ie disabled by being by having
(16:15):
a disability completion through the waiver premium option that's in
most contracts will enable your plan to continue. You can
access funds due to terminal or chronic illness, and the
benefits are free and clear, tax free. You have protection
from market downturns. You have death benefit protection that is
(16:37):
greater than the cash value. Cash value life insurance is
also not counted as an asset when you're applying for
the federal financial aid program known as FASTPA. This is
a big one because most people believe federal student aid
is based on your income and assets, and that's not
(16:58):
entirely true. You could have one hundred and fifty thousand
dollars in annuities or cash value life insurance and that
doesn't count against your FASTPA amounts. Keep that in mind,
what about plane in for your legacy. Many leverage cash
value life insurance to transfer wealth to the next generation.
(17:18):
A policy's death benefit can help cover final expenses to
help preserve other assets you intend as an inheritance leftover
funds provide a tax efficient method of passing wealth to
your designated beneficiaries, even a favorite charity. Many people believe
they'd like to leave the earth better off than while
(17:39):
they were here. People also use life insurance for multi
generational wealth transfers by funding a life insurance policy on
their child for the benefit of their grandchildren. Think about
this because Christmas is coming up. Let's talk about how
this would work for you. The policy holder, which is
(18:00):
a permanent cash value life insurance policy, and pay the premiums.
This allows you to retain full control over the policy
and leave a legacy with a long lasting impact for
your children the insured. The policy insures the life of
your children and provides a potential source of income. The
policy grows tax deferred and can be accessed income tax
(18:23):
free for reasons you specify for your grandchildren the beneficiaries.
Upon your death, policy ownership can transfer to a trust,
with the trustee honoring your wishes for maintaining the policy.
This provides an income tax free death benefit, helping to
provide financial protection for your grandchildren. You can also do
(18:45):
more in life with life insurance. With permanent cash value
life insurance, you can protect those who matter most, and
achieve your own lifetime goals. Cash value life insurance can
serve many purposes, from covering funeral expenses to paying for
your son's down payment on his first home, to supporting
granddaughters college dreams, and more. It's a versatile option that
(19:09):
can add new dimensions to your financial strategy. So go
ahead and put yourself first. Protect what you have today
and where you'll be tomorrow. Now, I have a poem
I'd like to share with you guys. This is from
Van Mueller. I am a piece of paper, but even more,
(19:32):
I am an idea. I am a promise. I help
people see visions, dream dreams, and achieve economic immortality. I
am an education for the children. I am savings. I'm
also a property that increases in value from year to year.
I lend money when you need it most, with no
(19:54):
questions asked. I pay off mortgages so that a family
can remain together and in their own home. I assure
fathers and mothers the daring to live and the moral
right to die. I create, manage, and distribute property. I
guarantee the continuity of business. I protect the jobs of employees.
(20:20):
I can serve the employer's investment. I am a tangible
piece of evidence that a man or woman is a
good spouse and a good parent. I am a declaration
of financial independence, a charter of economic freedom. I am
the difference between an old man and an elderly gentleman.
(20:44):
I'm the only thing that a father or mother can
buy on an installment plan, and the survivor doesn't have
to finish paying for it. I am a certificate of character,
evidence of good citizenship, an unimpeachable title to the right
of self government. I am protected by laws to prevent
(21:08):
creditors from accessing the monies I give to loved ones.
I bring dignity, peace of mind, and security to the
later years of life. I am the great social compact
that merges the individual into the mass and places behind
(21:28):
the frutality of human beings standing alone the immeasurable strength
of human beings standing together. I supply investment capital that
makes the smoke go up, the chimneys, wheels turn, and
motors hum. I guarantee that there will always be Christmas
(21:51):
with denseil, a happy fireside, and the laughter of children,
even though a breadwinter parent is no longer there. I
am the Guardian Angel of the House. I am your
life insurance policy. Here's two questions that I'd like to
leave you with today. I know that many of you
(22:15):
have thought about what happens if your life ends early.
But if you give in consideration to what would happen
if life doesn't end early. If I could show you
a way to stay in complete control your money until
you took your last breath. But instead of giving that
(22:35):
money to the I R. S or the government, a
nursing home or a hospital facility, you could keep that
money in your family for generations to come at the
very least. Wouldn't you want to know about that? If
you have more questions about that, let's talk again. I'd
(22:57):
give Medicare meetings UH usually on the third week of
the month every month, usually on Tuesday and Thursday. If
you'd like to more information about that, please call my
office at five six three three three two two two
zero zero and I'll give you the zoom codes for
(23:18):
those meetings. This is Craig Schillig with Safe Money.
Good morning to all. Craig Shillig here and this is
Safe Money. I'm here every Saturday to talk with our
listeners about financial strategies we use to manage and protect
assets safely. I've been an insurance agent for over twenty
four years. During that time, I've learned a few insurance strategies,
like using annuities as safe money harbors, or using cash
(00:22):
value life insurance to supplement retirement income. Just a reminder,
you can call our office at five six three three
three two two two zero zero if you'd like to
enroll into one of my virtual Medicare community meetings that
I do via zoom. I give those I give two
(00:45):
every month, usually on the third week of the month,
every month of the year. Or you can email me
at Craig at Craigshillig dot com. That's c r a
I G at c r aig s c h I
(01:09):
lllig dot com. Today, I want to talk to you
about the many uses of cash value life insurance. This
is kind of considered the Swiss Army Knife of financial products.
The utility for this type of product can't be measured.
Today we're going to talk about cash value life insurance
(01:31):
and how it can not only help protect your family
or business, but how permanent cash value life insurance can
be used throughout your life. Permanent cash value life insurance
can help protect your family or business, but there's actually
so much more to it than that. If you're only
familiar with life insurance for its death benefit, you may
(01:53):
be surprised to learn about the many living benefits a
cash value tract can offer you, especially if you leverage
the cash value that accumulates within a permanent cash value
life insurance policy. You may be surprised to know that
a cash value life insurance policy accumulates cash value that
(02:17):
you can access at any time, for any reason, and
in most cases income tax free. Remember this if you
forget anything else I tell you today. Cash value life
insurance grows in value every single day. They also have
contract features that help keep the contract in force. If
(02:39):
you become sicker, hurt, and can't pay the premiums, the
insurance company will pay premiums for you until you recover
and return to normal working status, or until upon your death,
and then they would pay the death benefit amount to
the beneficiaries that you designate. Now, please remember this is
(03:03):
life insurance, so your retirement account's not going to do
that for you. Here's the question to ponder your thoughts.
Can you contribute to your retirement account while you're sicker, hurt,
and not earning an income. Think about that for a minute.
The answer to that question is no, because you need
to have earned income to make retirement contributions. Under IRS code,
(03:29):
cash value life insurance will continue on and grow in
value while you're sucker, hurt and not earning an income.
Many life insurance contracts today offer a long term care
writer or a chronic conditions writer that can be attached
to the policies in case you may need monies for
(03:50):
custodial care, ian home or assisted care, assisted nursing home care,
or even nursing home care. Another feature that your retirement
account won't offer you is that and that money that
you're using from your cash value life insurance is free
and clear, tax free. There's no ten ninety nine created,
(04:11):
and there's no taxable ramifications from those uses. Your retirement
account doesn't have a feature like that either. Your only
option is to hit withdrawal of the money, and you're
never it's never going to be the right time to
make that withdrawal. Plus you'll never recover once upon you
(04:31):
direct them to sell those shares. Cash value. Life insurance
provides protection for your loved ones, But there's really so
much more to it, and this so much more is
all about you. You can access the cash value whenever
you'd like that, maybe soon. Maybe it's to start a business,
(04:54):
help pay for college. If it would be later, maybe
it would be to supplement your retirement income accounts. If
it's much later, it may even be to leave a legacy.
Let's walk through some examples to inspire you. We're going
to talk about soon later or much later, So we'll
(05:17):
talk about soon first. Maybe you want to buy a home.
Maybe you want to become an entrepreneur and start a business.
John F. Kennedy said that life insurance companies have a
pulse on the small business owner and how the economy
is really doing. Maybe you want to pay for loved
ones college education. Maybe you want to fill in an
(05:41):
income gap. Maybe you want to supplement your retirement income
during a market downturn. How about cover unexpected expenses. Maybe
you have a repair on your home, Maybe you have
damage and need you have to cover a home owners deductible.
(06:03):
What if you have to replace a car. Maybe you
have a emergency trip for a loved one who lost
their life i e. A funeral. Perhaps you want to
leave a legacy. Maybe you want to transfer wealth. Some
of us may have a philanthropic bone. What if you
(06:23):
want to give to charity. There's so many other things
that we can't foresee now that you can use these
types of contracts for. One way to enhance your retirement
strategy is to leverage the cash value in your permanent
life insurance contract. I'll show you a couple of ways
we can do that. Why would one consider permanent life
(06:46):
insurance as a source of retirement income. There's several reasons
for that. To consider adding a permanent cash value life
insurance policy as a source or your retirement income would help,
including it's not subject to IRIS retirement contribution limits, so
you can put a lot more in there if you're
(07:08):
a high income earner. There's no top end limit on that.
The policy values are protected from any market downturns. Your
cash value life insurance policy doesn't care who's in the
White House. How's the stock market doing today? Is it
up or is it down? Your cash value life insurance
doesn't care cash values in your policy grow tax referred
(07:33):
and can be accessed income tax free at any time
for any reason. You don't need to get permission from
your local banker for a loan. You don't have to
ask your tax advisor what the tax ramifications of this
withdrawal would be. You just sign a form, they send
you a check. With technology today, sometimes I can get
(07:56):
a check to my clients in less than forty eight hours.
Taking cash value from your policy doesn't affect your tax
bracket or if you would have any taxation issues with
your Social Security benefits. Cash value is not subject to
rmds known as required minimum distributions. Over seventy the over
(08:21):
seventy three crowd understands exactly what I'm talking about here.
You can access a portion of your policy's death benefit
in the event of a serious illness or a custodial
or long term care need. Let's talk about diversifying your
retirement strategy. Let's add some diversification diversification to your retirement
(08:44):
with a tax free income source. So let me give
you an example of tax diversified income. Let's say you
would draw a fifty thousand from a mutual fund in
order to take that withdrawal, you're going to have to
pay a capital gains tax of about seventy five hundred dollars.
What if you want to withdraw fifty thousand dollars from
your four one K account under that scenario your ordinary
(09:08):
you're gonna pay ordinary income tax of around seventeen five
hundred dollars estimated. If you want to take a fifty
thousand dollars withdraw from your life insurance contract, that's free
and cleary tax free. There's no tax ramification there. Cash
value life insurance is a safe money harbor. You may
(09:31):
have heard how important it is to diversify assets in
your portfolio, but did you know it's just as important
to diversify the taxation of your assets. Diversifying retirement funds
across taxable, tax deferred, and tax free buckets helps minimize
the impact of taxes on your overall portfolio. Let's talk
(09:54):
through a hypothetical hypothetical example to help bring this idea
to life. Let's say you have one hundred and fifty
thousand dollars annual drawl and a retirement account in a
typical non diversified retirement income plan. You'd pull that money
from your four O one K, which represents a tax
deferred bucket. After paying ordinary income tax at let's just
(10:19):
call it thirty five percent, and the capital's gains tax
at fifteen percent, you'd have in the end there ninety
seven five hundred dollars left of net income. Now let's
look at how this could be different in a tax
diversified retirement income plan. In this scenario, we'll split the
(10:40):
withdrawal evenly between three different buckets. So I'm going to
take a taxable bucket, we'll call that your mutual funds.
I'm going to take a tax deferred bucket, we'll call
that your four to one K, and I'm going to
use a tax free bucket that's from using cash value
life insurance. So I'm going to take fifty thousand dollars
(11:01):
out of each bucket, the taxable, the tax deferred, and
the tax free. In this scenario, we're reducing ordinary income
tax and capital gains expenses because I only have to
take one hundred thousand from the taxable and the tax
deferred asset bucket. This means your total net income is
(11:23):
about one hundred and twenty or one hundred and twenty
five thousand, dollars or twenty seven five hundred dollars higher
than in the first scenario I gave you that was
around ninety seven five hundred. This is a benefit of
adding a tax free income source like cash value life
insurance to your retirement plan. This will help you protect
(11:47):
retirement savings from market volatility. Life insurance can also help
protect your retirement savings from market swings that we can't
foresee right now. If you take withdrawals from a market
based account during a down market, your retirement funds will
deplete much much quicker, and it will be very hard
(12:10):
for you to have enough time to make those shares recover.
This is also known as the sequence of returns we have.
You can talk to your financial advisor about it, but
ask them what sequence of the return is, and you
can take several hypothetical examples of taking withdrawals during certain
(12:33):
periods of market time. The sequence of returns is what
can either make or break your overall retirement plan, so
keep that in mind. This is where cash value life
insurance comes in. In addition to death benefit protection, cash
value dividend paying life insurance can provide cash value that
(12:54):
will grow tax deferred. You can use it as a
source of tax free retirement income. It's protection for you
from market fluctuations. You can take income from your cash
value life insurance policy during a down market instead of
pulling money out of your other investments. By doing this,
(13:19):
you're giving those investments time to recover much more quickly,
and maybe you can get back to where you were
before the market downturn. One of the greatest threats to
your retirement account balance is selling the shares when the
stock market is falling. You're basically slicing yourself off with
(13:40):
the knees and you're not going to be able to
recover this, especially if you're in your mid to late
sixties or early seventies, because you won't have enough time
to recapture that. If you've got to tap that bucket
during a market downturn, you're going to need to sell
(14:02):
more shares. In a positive one, you'll need to come
up with cash you need. Compounding this issue more. The
more shares you sell today, the fewer shares you have
left to take advantage of during an eventual market rebound. Consequently,
you'll take withdrawals from market based accounts during a down market.
(14:25):
Your retirement funds will deplete much more quickly, it'll be
harder for you to recover. This is where another space
where cash value life insurance fits in perfectly. You can
take income from the life insurance policy during a down
market instead of taking income from your investments. This will
(14:47):
then allow them to recover much more quickly, and it's
a great way to leverage your assets, especially during a
market downturn. You can add flexibility to your college funding strategy.
Life insurance can also help support college funding. You can
leverage a life insurance policy to supplement college funding strategies
(15:12):
that can not only close the savings gaps, but can
also provide a source of funds in the event of
a premature death. Plus cash value life insurance can be
used to pay for non educational expenses or fund other
schooling options. While both permanent cash value life insurance and
(15:34):
a five to twenty nine plan can provide benefits for
college funding such as tax deferred growth of values, distributions
during lifetime is generally non taxable as income, and they
can be used or transferred to benefit multiple children. Leveraging
(15:55):
permanent cash value life insurance as a college funding source
provides the ease additional benefits. There's no ten percent withdrawal
penalty and no restrictions for non educational expenses. If you
become sick or hurt ie disabled by being by having
(16:15):
a disability completion through the waiver premium option that's in
most contracts will enable your plan to continue. You can
access funds due to terminal or chronic illness, and the
benefits are free and clear, tax free. You have protection
from market downturns. You have death benefit protection that is
(16:37):
greater than the cash value. Cash value life insurance is
also not counted as an asset when you're applying for
the federal financial aid program known as FASTPA. This is
a big one because most people believe federal student aid
is based on your income and assets, and that's not
(16:58):
entirely true. You could have one hundred and fifty thousand
dollars in annuities or cash value life insurance and that
doesn't count against your FASTPA amounts. Keep that in mind,
what about plane in for your legacy. Many leverage cash
value life insurance to transfer wealth to the next generation.
(17:18):
A policy's death benefit can help cover final expenses to
help preserve other assets you intend as an inheritance leftover
funds provide a tax efficient method of passing wealth to
your designated beneficiaries, even a favorite charity. Many people believe
they'd like to leave the earth better off than while
(17:39):
they were here. People also use life insurance for multi
generational wealth transfers by funding a life insurance policy on
their child for the benefit of their grandchildren. Think about
this because Christmas is coming up. Let's talk about how
this would work for you. The policy holder, which is
(18:00):
a permanent cash value life insurance policy, and pay the premiums.
This allows you to retain full control over the policy
and leave a legacy with a long lasting impact for
your children the insured. The policy insures the life of
your children and provides a potential source of income. The
policy grows tax deferred and can be accessed income tax
(18:23):
free for reasons you specify for your grandchildren the beneficiaries.
Upon your death, policy ownership can transfer to a trust,
with the trustee honoring your wishes for maintaining the policy.
This provides an income tax free death benefit, helping to
provide financial protection for your grandchildren. You can also do
(18:45):
more in life with life insurance. With permanent cash value
life insurance, you can protect those who matter most, and
achieve your own lifetime goals. Cash value life insurance can
serve many purposes, from covering funeral expenses to paying for
your son's down payment on his first home, to supporting
granddaughters college dreams, and more. It's a versatile option that
(19:09):
can add new dimensions to your financial strategy. So go
ahead and put yourself first. Protect what you have today
and where you'll be tomorrow. Now, I have a poem
I'd like to share with you guys. This is from
Van Mueller. I am a piece of paper, but even more,
(19:32):
I am an idea. I am a promise. I help
people see visions, dream dreams, and achieve economic immortality. I
am an education for the children. I am savings. I'm
also a property that increases in value from year to year.
I lend money when you need it most, with no
(19:54):
questions asked. I pay off mortgages so that a family
can remain together and in their own home. I assure
fathers and mothers the daring to live and the moral
right to die. I create, manage, and distribute property. I
guarantee the continuity of business. I protect the jobs of employees.
(20:20):
I can serve the employer's investment. I am a tangible
piece of evidence that a man or woman is a
good spouse and a good parent. I am a declaration
of financial independence, a charter of economic freedom. I am
the difference between an old man and an elderly gentleman.
(20:44):
I'm the only thing that a father or mother can
buy on an installment plan, and the survivor doesn't have
to finish paying for it. I am a certificate of character,
evidence of good citizenship, an unimpeachable title to the right
of self government. I am protected by laws to prevent
(21:08):
creditors from accessing the monies I give to loved ones.
I bring dignity, peace of mind, and security to the
later years of life. I am the great social compact
that merges the individual into the mass and places behind
(21:28):
the frutality of human beings standing alone the immeasurable strength
of human beings standing together. I supply investment capital that
makes the smoke go up, the chimneys, wheels turn, and
motors hum. I guarantee that there will always be Christmas
(21:51):
with denseil, a happy fireside, and the laughter of children,
even though a breadwinter parent is no longer there. I
am the Guardian Angel of the House. I am your
life insurance policy. Here's two questions that I'd like to
leave you with today. I know that many of you
(22:15):
have thought about what happens if your life ends early.
But if you give in consideration to what would happen
if life doesn't end early. If I could show you
a way to stay in complete control your money until
you took your last breath. But instead of giving that
(22:35):
money to the I R. S or the government, a
nursing home or a hospital facility, you could keep that
money in your family for generations to come at the
very least. Wouldn't you want to know about that? If
you have more questions about that, let's talk again. I'd
(22:57):
give Medicare meetings UH usually on the third week of
the month every month, usually on Tuesday and Thursday. If
you'd like to more information about that, please call my
office at five six three three three two two two
zero zero and I'll give you the zoom codes for
(23:18):
those meetings. This is Craig Schillig with Safe Money.
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