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.
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- (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
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