Saturday, May 20, 2017

More Proof that Cash Value Life Insurance Never Makes Any Sense

The word is out that it is much better to buy the lower cost Term life insurance and invest the difference. However, even among Term-believers, there are still many who believe that in certain situations, Cash Value might actually make sense.

A common misconception is that Cash Value life insurance makes great sense at least for estate planning for higher net worth individuals. Well, when people talk about estate planning, they are really just talking about tax planning or sheltering their money from taxes. For example, if you have a net worth of $10 million, when you and your spouse dies, and you have children and heirs who you are leaving the money to, you may have to pay around 50% in estate taxes to the government – or $5 million. So, for estate taxes, you would have to buy a $5 million life insurance policy that would pay the taxes and leave your family with the full $10 million. That is the reason for buying insurance for estate taxes.

Let’s say, just like in the example above, that you are worth $10 million and you are expecting to have to pay $5 million in estate taxes. What you could do instead of getting a Cash Value life insurance policy is get a $2.5 million Term life insurance policy on the husband and one on the wife. Then you could set up a variable annuity. If the husband were to die first, his $2.5 million would go into the variable annuity. They don’t have to pay the $5 million estate tax until they both die. So, now you have the $2.5 million in the variable annuity, and let’s say it’s growing at around 8%. Around 10 years later, the wife dies. By using the Rule of 72, the variable annuity has doubled in 9 years working at 8%. So, you already have over $5 million in the variable annuity. Then when the wife dies, her $2.5 million goes into the variable annuity also. Now they have over $7.5 million in the variable annuity that can be used to pay the taxes and now the family can get the full $10 million. And the variable annuity is tax deferred or sheltered from taxes, just like a variable life insurance policy, so why would you get a variable life insurance policy?

The reason cash value agents don’t even suggest the Term solution is because they won’t make as much money. If you sell $2.5 million worth of life insurance, it is 4-5 times more expensive to buy Cash Value for the same amount. Let’s say it is $10,000/yr. for the Term, it may be $100,000/yr. for the Cash Value and the agent gets paid on the first year of premium. If he has a 100% contract, he either makes $10,000 or he makes $100,000 – Which one do you think he is going to sell?

So, even for high net worth people, Cash Value life insurance still doesn’t make any sense!

Cash Value never ever, ever, ever makes sense under any circumstances!

I'm so excited to share this information with you. If you have enjoyed the information or feel that it would benefit someone else, please share it. If you have any comments, please post them below, otherwise, feel free to contact me.

Sunday, May 14, 2017

3 Ways to Face Your Fears With Courage
Written by Jim Rohn

Do you own your life or do your fears own you?

Here are a few techniques to help you build your courage and face your fears.

1. Put all remote possibilities out of your mind.
Don’t worry about things you have no control over. Don’t spend your time thinking about all of the bad things that might happen to you. Don’t spend your time plotting and planning ways to make sure these things will never happen.

Courageous people don’t worry about things that are out of their control or things that are unlikely to happen. They concentrate on what they can control.

2. Face your fears before you start something.
Imagine difficult situations before they occur. Make a list of the worst that could happen, and you’ll probably see that the situation is not so bad after all.

A friend of mine lost everything a few years back—her home, cars, possessions, antiques, art, jewelry and credit. She lost it all. Now, on her way back up, whenever she’s faced with a tough decision, she asks herself, What’s the worst that can happen? And guess what, she’s already been through the worst and she survived. It’s not an issue anymore.

You don’t have to lose everything to lose that particular fear. But once you face your fear, you can move on. Once you’ve figured out the worst that could possibly happen, you’ll see that you have the inner strength to deal with it if the worst scenario comes about. And here’s the best part: If you’ve looked at the possibilities beforehand, you’ll probably never be faced with the situation at all. Why? Because you’ve already been through it. By contemplating what might happen, you’ve charted your course to ensure that it doesn’t.

3. Imagine the alternative.
Picture the result of giving into your fears. Really feel the cost of being ruled by fear; then really feel the benefits of courageously following your ambition. Carefully weigh the two and see the difference.

If you’ve been invited to address your national sales convention and are scared to death of public speaking, what should you do? You could decline the invitation, knowing full well that your fears are holding you back. Or you could take some classes, read some books, practice with a friend. See yourself stepping into a whole new league. You’ll be accepting the opportunity to gain more notoriety in your field. And you’ll be increasing your opportunities for future success.

Once again, it’s your choice. Be fueled by your fears, or face your fears. It all depends on how badly you want something. It all depends on how you choose to live your life; do you always want to be afraid of taking the next step, or do you want to build your courage and open the doors of opportunity? I know what my answer would be.

Jim Rohn, America's Foremost Business Philosopher, reprinted with permission from Jim Rohn International © 2017. As a world-renowned author and success expert, Jim Rohn touched millions of lives during his 46-year career as a motivational speaker and messenger of positive life change. For more information on Jim and his popular personal achievement resources or to subscribe to the weekly Jim Rohn Newsletter, visit