What Social Media Influencers Aren't Telling You About "High Early Cash Value" Policy Designs
"High early cash value" (sometimes referred to as "90/10") whole life policies are frequently promoted across social media, promising maximum early cash value with seemingly no downside.
In this episode, I demonstrate the hidden trade-offs that, in my experience, I never see disclosed to clients. We have compelling data from 50-year policy comparisons that shows why these designs often cost policyholders hundreds of thousands in long-term wealth potential.
Listen in to learn how Nelson Nash's principle of "thinking long-range" is essential and how a more balanced policy approach provides the flexibility and wealth-building capacity superior to high early cash value designs and can transform financial outcomes for generations.
LINKS:
1. Get my free weekly newsletter with exclusive content on financial education
2. Work with me: Schedule a consultation
- (00:00) - What to know about high early cash value
- (09:22) - The three ways to get high early cash value
- (10:10) - IRS rules are why policy design is even a thing
- (11:13) - Cash value is derived from the death benefit not separate from it
- (11:59) - More death benefit = more possible cash value
- (12:19) - 1. "Short-Pay" Policies
- (15:55) - 2. Big, long-dated term riders
- (16:58) - 3. Non-guaranteed policy elements
- (18:48) - 50 year comparison: Short-Pays vs. Long-Pay
- (26:26) - Paying premium takes precedence in the order of operations
- (29:05) - One additional payment changes the entire story
- (32:34) - Expanding the system
- (33:55) - Think long range
Popular Podcasts
My Favorite Murder with Karen Kilgariff and Georgia Hardstark
My Favorite Murder is a true crime comedy podcast hosted by Karen Kilgariff and Georgia Hardstark. Each week, Karen and Georgia share compelling true crimes and hometown stories from friends and listeners. Since MFM launched in January of 2016, Karen and Georgia have shared their lifelong interest in true crime and have covered stories of infamous serial killers like the Night Stalker, mysterious cold cases, captivating cults, incredible survivor stories and important events from history like the Tulsa race massacre of 1921. My Favorite Murder is part of the Exactly Right podcast network that provides a platform for bold, creative voices to bring to life provocative, entertaining and relatable stories for audiences everywhere. The Exactly Right roster of podcasts covers a variety of topics including historic true crime, comedic interviews and news, science, pop culture and more. Podcasts on the network include Buried Bones with Kate Winkler Dawson and Paul Holes, That's Messed Up: An SVU Podcast, This Podcast Will Kill You, Bananas and more.
24/7 News: The Latest
The latest news in 4 minutes updated every hour, every day.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com