Life Insurance Loans Explained!
Life Insurance Loans Explained!
Warning ⚠️
This could create a major tax event for you!
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Credit:
Uyen Nguyen – @winwin.moneymoves
Theres 3 kinds of life insurance. Whole Life, Term and Universal Life. Learn all of it and u will know what he is saying is true!!
Sounds like the opportunity for premature EARLY EXPIRATION of a certain party.🤔🤔🤔
Plus if you’re loaning out money, you’re assuming a lot of risk.
Nobody ever talks about the risk you incur.
“Insurance will pay a benefit in the event of X, even if X doesn’t happen” ok 🙄
At the end of the day the government takes every penny one transaction at a time in the form of taxes. Money which was made from thin air.
Dunno about it but in India atleast you cannot borrow more than the premium you have already paid. Not sure about benefit earned on it.
Life insurance hack exists.
Insurance companies deceive people by selling them a limited life policy that ends before they die. So The children nothing.
Finally, someone calling out these BS videos, be your own bank bullcrap…
😂😂😂😂 why don’t you mention it’s 90% max of value and it’s not your regular interest loan. But a loan is a loan pay it but in IUL it’s even worse
Not sure what the typical interest rate is currently, but borrowing against your policy used to be around 8%. He doesn’t mention that part.
If the cash value you put in was 1 million then your no laps guarantee goes in effect. But if not, you fucked up. The charts show you what you can take out at that time. If you have 1 million cash value you’re not allowed to take out 1 million it will be under that. People who do that normally have a investment that will double and put the money right back and repeat once another asset opportunity comes available
Fuxk im gonna do this and drop on ethereum and stake it ❤
I honestly have thought about taking a loan from my life insurance policy so I can pay off student loans, my car, and buy a house out right. Then pay off that one loan. IDK how good of an idea that is in the long run.
I can’t find the original
Holy shit is the whole internet retarded. Its just a tax strategy that dosen’t make sense for 90% of people even rich ones because there are other strategies. But…. if you have a lot of money and or a really high salary and you don’t want to pay tax on it you dump it into a whole life policy. Then if you want to make a major purchase like a mansion or a yacht you borrow the money from that policy instead of using after tax income. Like if you’re in the 50% tax bracket and you want to buy a 10 million dollar mansion you would have to earn 20 million in order to keep 10 for the purchase. Since life insurance premiums are taken off your total income you aren’t taxed on them.
what domse insurance companys allows is very low to no interest loans in order to get the money, its the most used trick by rich people to get tax free money. thats why instead of getting a bonus they get a straight deposit to there whole lofe insurance
The first guy is stupid. You cant take a loan from the death benefit. You can only borrow from the cash value if there is any. The only way that you have a million in the cv is for you to provide the million as a lump-sum insurance policy.
Always talking broke mindset. Why not talk about INVESTMENT/compound interest opportunities? Oh bc you’re broke mindset won’t let you 😂 smh
If he invested the money and made profits could he pay back the advance?
Criticizing missing context is disingenuous.
Chris Naugle always says to pay back your loans because you don’t rob your own bank.
I usually really like his videos but he’s completely wrong here. Whether he’s lying just to lie or if he just never looked into this, it makes me lose faith in anything he says anymore. It isn’t compounding interest on the loan. If someone tries to talk you into an IUL with a loan structure that has compounding interest, then look somewhere else. I have five different IULs and none of them have compounding interest in the loans, it’s a single application of the interest.
He said loan from a get go, not misleading… you obviously have to pay back your loans as you go just like your house, car, credit cards… stick with you agreed loan terms
Pay it wit the 12 keep the spread
Exactly why I stop listening to the internet
Cash value has to acrue over time. The only other way is if you already have a large sum of money but how often can one say i have a couple million here and there.
Life insurance should be use for its intended purpose… only a universal policy has some lucrative aspects but even then they made tax laws against it
Nothing Chris said was wrong. Good try.
So misleading… you dont borrow against the death benefit you can only borrow against rhe cash valuenin the policy
Your point is valid, however the cash value of a whole life policy won’t be equivalent to the death benefit so it will be nearly impossible for you to accumulate enough interest on the loan that you’ve borrowed from the policy prior to you passing away. But, the best practice is to pay off the loan so that you have access to the funds again.
As an agent i don’t push all this loan nonsense and borrowing against your policy.
I stick to the core of my business and that is helping you put the necessary financial protection in place in the event of death or a major critical illness, full stop.
What you guys are hearing about is called an IUL and the stars have to pretty much align on interest rates, the company, and the policy for you to really benefit from it. Oh yah, and one more thing. You pay it for the rest of your life. Meaning if you borrow a million and fail to pay a month…well, you do the math.
But of course take what I say with a grain of salt. Don’t believe me any more than you do either of the guys here. Do your own research and please. Read between the lines ALWAYS
Not if I’m dead 😂
So in other words only borrow what you put in ?
Anytime some guy I’ve never heard of is trying to "drop bombs or facts" with that same song playing in the background I know to just scroll by
But I’m glad I stayed for this
You seem objective and knowledgeable and you’re not trying to sell a pipe dream
You’re being real
I respect it so you got a sub from me brotha
What if that person dies for 5 minute and then comes back. Do the insurance count that death or should be a definitive death? Just a crazy thought… 🤔
In an IUL if you continue to pay premiums as long as over the life of the policy you have any kind of positive arbitrage it will not fall apart. You do need to build up and maintain the appropriate amount of reserves though.
If your poor please live 5 to a one bedroom for like three years work two jobs study investment vehicles and then Just buy low sell high
Yeah about that tax part you really need to look up something on that
I cant wait for society to fall and all this stupid bullshit go away.
People like this has made selling practical life insurance policies tougher on me because I now have to spend time re-educating clients on how it all works. I swear I cringe when I hear someone ask about the "infinite banking glitch" 🙄😒
Only a small portion of your insurance premium is added to the cash value. In order to borrow a million dollars you’d need have been paying into multi-million dollar policy for decades
i need to ask someone if it works like that here in germany too. i dont think so. i even would have to pay taxes if i end the contract early and get the money out. hm interesting.
I don’t understand what he is talking about. Insurance is a service where you pay to receive financial protection in case of death. An insurance policy is not an asset you can borrow against. I know there are some scams where they combine an insurance policy with a savings account in order to confuse people. Is this what he is talking about?
Licensed agent here, you can only take out a loan on the cash value of the policy sorry man you can’t take out a loan on the death benefit. Also, you need to speak with an agent on setting up these policies since not all life policies are the same. What he is describing here is an IUL (indexed universal life), and the great parts of these policies are that the cash value grows with an interest rate that will fluctuate based on the policy. Many of the rates are determined based on the SMP 500, so in a way, it plays like a mutual fund in that sense (I’m not licensed for annuities), but what separates Life insurance Is the Death benefit is TAX FREE and is not a public event so debtors cannot take claim on a life insurance Death benefit. Now, the problem people have when setting up IULs is that they can often be underfunded and you will eat into your cash value if that’s the case. Yes, we are salesmen, but we are also licensed professionals. Obviously, not every agent is the same, but that’s no different from any person ever.
They never say you have to die… it’s on the first line of the contract.
Any time that music playing and money is being f talked about…. Bullshit is about to follow
Life insurance is the biggest hustle created during the Great Depression. They convinced all the people back then to have life insurance just in case they died so their family could keep going without the worry of replacing your income after you die. All those dummies are it up and started wasting money on life insurance. They then tell you how rich people have lots of life insurance policies, but that’s a lie too. They already have money, so they don’t need life insurance, and if they do have it, it’s very easy for them to afford the monthly premiums unlike average folks barely making it.
They don’t tell you about fees etc.
👏🏻 danko