SOCIAL MONETARY TRANSPARENCY
Many individuals go to great lengths to secure their assets. Whether it be hiring an attorney or setting up an account, people are anxious to ensure they’re protected. It’s a matter of fact that we live in a litigious society, and if by chance you get caught in a financial scrape, or for whatever reason you default on debts, a judgment can be placed against you. When a judgment is ordered, creditors can then have access to your assets—bank accounts with cash, your home, your business, etc. If a creditor wants payment, they will go to great lengths to know where a person keeps their money. Exposing an individual can be as easy as getting online and looking at public records or a person’s social media page.
PROPERLY STRUCTURED WHOLE LIFE INSURANCE USES THE CASH VALUE AS EQUITY, ALLOWING YOU TO BORROW AGAINST YOURSELF ON YOUR TERMS.
One of the little-known ways to protect your assets—cash included—without paying a hefty fee to an attorney is provided by a Whole Life Insurance Policy. Whole Life Policy naturally comes with many layers of protection. First, it’s a completely private contract between the owner and the insurance company and is not on public record. Second, your policy adds trust and security to your wealth system. Properly structured Whole Life Insurance uses the cash value as equity, allowing you to borrow against yourself on your terms. Typically, Whole Life Insurance Policies are one of the few assets that cannot be seized by creditors, liquidated with bankruptcy, and given to a former spouse during a divorce. However, each state abides by different laws, and in these situations, an individual should contact an attorney.
WHY BANKS MAKE MONEY FROM YOUR MONEY
The money you deposit into a bank is only insured by the FDIC up to $250k. When you put your money into a bank account, essentially you become the bank’s unsecured creditor. The bank then takes your dollar and multiplies its use through fractional reserve lending, which means they are only required to keep 10% of every dollar deposited, they are allowed to loan the rest. Most consumers in the United States do not realize the relationship they hold with their bank as an unsecured creditor. Because of this relationship, if the bank were to lose money on its assets and become insolvent, then you are at a loss.
MAINTAINING CONTROL OVER YOUR WEALTH
Setting up a Permanent Life Insurance Policy as part of your overall wealth plan allows you to remove the bank from the equation. Mutual Life Insurance companies are not allowed to operate on fractional reserves, which means that the cash inside of your policy is backed by the asset of cash itself. When you claim that cash, your money will always be available to you. Mutual Insurance Companies rarely claim losses as banks do. Unlike banks, mutual insurance companies are mutually owned by policy owners. Banks invest in the stock market, while mutual insurance companies invest primarily in the bond market. Investing in bonds creates another layer of protection for anyone using their Whole Life Policy as a “bank.” Instead of using a credit score to ensure borrowing power, when you borrow against the cash value of your policy, there is no credit score. The cash inside your policy is yours, and the insurance company has a contractual obligation to lend to you at any time and for any reason. Life Insurance provides more guarantees than any other banking institution or financial product available.
SECURITY IN LAYERS
Banking through Whole Life Insurance allows you to invest your money in other performing assets while still earning interest, and you receive market protection and dividends. Though dividends are not guaranteed, it is unlikely that a policyholder will not receive them. Some Life Insurance Companies have a record of paying year-after-year dividends for over 100 years— even during The Great Depression. Whole Life Insurance is an easy and smart way to protect your wealth during the information age. Policy ownership is not on the public record and, depending on your state’s legislation, is likely protected from any type of creditor. A whole Life Policy also provides a tax shelter, as your money accumulates tax-free. If you are looking for ways to protect and maximize your wealth and personal economy, a Whole Life Insurance policy is the best financial vehicle available to ensure you meet your needs.