You're Being Duped! They're Lying to You About Permanent Life Insurance?

Do you know that Permanent Life Insurance has so many positive benefits that I call it the "Swiss Army Knife of Financial Tools".

We've all heard and seen the Unlicensed Wannabe Financial Pundits on Podcasts, YouTube and other Social platforms stated that owning Permanent Life Insurance is a waste of your money. I'll get into that in a minute.

Here's a general definition of Life Insurance. A Life Insurance policy is a Legally Binding Contract between an Individual (the Policyholder) and an Insurance Company, wherein the Insurer agrees to pay a Designated Beneficiary a sum of money (the Death Benefit) upon the death of the Insured person, in exchange for regular premium payments made by the Policyholder. It can also include Provisions for the Policyholder's potential Life events, such as Critical Illness, Chronic Illness, Terminal Illness or Disability, depending on the type of policy. And there are many other benefits to the Insured that I will get into in a minute.

But, the Unlicensed Wannabe Financial Pundits and their Uninformed Followers are saying the following:

👎 The “Insurance is a Scam” Myths

• Myth #1: "Why pay for something I might never use?"
• Myth #2: "I’d rather take my chances!"
• Myth #3: "It’s just a way for companies to get rich!"
• Myth #4: "Buy Term and Invest the Difference."

Let me go into each of these and explain to you why they just don't make much sense in the REAL World.

Myth #1: "Why pay for something I might never use" - This statement is so short sighted. First of all, as I explained above, Life Insurance is a Binding Contract. The trigger is the Insured's death. When the Insured dies, the Insurance Company pays the Death Benefit to the Insured's Designated Beneficiaries. These Beneficiaries receive CASH. BTY, it's TAX-FREE Cash!!! So, the "I might never use it" is only in cases where the Insured purchased a policy (Term Life Insurance and in some cases Permanent Life Insurance) and has stopped paying the premiums and lapsed the policy or the policy has reached it's Term Limit (5, 10, 15, 20, 30 years) and has not been renewed or can't be renewed. While Term Life Insurance has its place and utility, it's not the best use of your money. Term Life Insurance terminates and while you were covered for a period of time, after the Term Insurance expires or you stop paying the premiums prematurely, you have nothing to show for it.

Myth #2: "I'd rather take my chances!" - You'd rather take your chances??? Take your chances with what, your future, your family's future, your business' future? How thoughtless can a person be? Again, Life Insurance is first and foremost for the Benefit of your Designated Beneficiaries; Your Loved Ones, Your Business Partners, Your Alma Mater, Your Church, etc. Would you take your chances and go without Auto Insurance, Homeowners Insurance, Health Insurance? No, you want to protect your assets. And guess what, your number one asset is YOU! Why? Because when you die, your ability to make an income for your family and business dies with you. And, as we will discuss further in this Newsletter, Permanent Life Insurance and some Term Life Insurance policies have many other Living Benefits to offer "You", the Insured, beyond the Death Benefit.

Myth #3: "It’s just a way for companies to get rich!" - Yes, there have been many egregious examples of abuse by Companies that put their Stockholders and CEOs first and break the Public's Trust.

Life Insurance Companies exist to pay their contractual obligations to you. The only time that a Life Insurance Company can deny a legitimate claim is if there was a material fraud on the application or if the Insured commits suicide in the first two years of the policy. After the two year contestability period is over, the Insurance Company must pay the claim.

At Comprehensive Insurance Consultants, we conduct business with mainly Mutual Insurance Companies. The reason is because Mutual Insurance Companies are not Stockholder owned. When Mutual Insurance Companies have a positive experience, in any year, in their investment results, positive claims experience or lower expenses, they pass a portions of those profits to their participating Life Insurance Insureds in the form of an Annually Declared Dividend. If you talk with anyone who is an Investor, they will tell you that receiving Dividends is good a thing.

Myth #4: "Buy Term and Invest the Difference." - This one makes sense in theory. But, it doesn't make much sense in REALTY! Why? Term Insurance, as I said before, has it's utility, but the Death Benefit of most Term Insurance is rarely paid to the Beneficiaries. In fact, according to a LIMRA (The Life Insurance Marketing & Research Association) approximately 1-2% of all Individual Term Life Insurance policies resulted in a Death Benefit payment to Beneficiaries. 1-2% Ladies and Gentleman. This is mainly due to the Insured lapsing the policy by not continuing to pay the required premiums or the policy reaching its Term Limit and not being renewed for whatever reason. That's not efficient use of your money! Now, there are some strategies that include Term Life Insurance recommendations, but they should come with an understanding between the Agent and the Insured that the Term Insurance policy will be purchased with the intent to convert all or a portion of the Term Insurance coverage to Permanent Life Insurance coverage over time or because more coverage is needed at younger ages for family or business protection.

Now the part about "Investing the Difference." Invest the difference in what? Mutual Funds or Annuities that are exclusively distributed by the Agency selling the Term Insurance? In our experience over 30+ years of helping our Clients with their Financial Planning, we find that most people don't invest the difference or invest such a small amount that it has little to no impact on the Client's financial future. This strategy, quite frankly, is designed for the person that has limited discretionary income.

Don't let the Inexperienced Insurance MLM Agents shove this ill conceived concept down your throat. Financial decisions should be made with the help of a Qualified and Experienced Financial Consultant. Someone whose job is to help you create a solid and customized Financial Plan for your future. Life Insurance being only a part of that Financial Plan. At Comprehensive Insurance Consultants, we specialize in doing just that through our "Guided Prosperity Strategy".

Now comes the moment of TRUTH! As you continue to reading further, you will learn what a Permanent Life Insurance policy can really offer you. Let's look at the following:

👍 “Permanent Life Insurance is a Valuable Asset Class”

• Truth #1: "Permanent Life Insurance is an Asset!"
• Truth #2: "Permanent Life Insurance can accumulate cash!"
• Truth #3: "Permanent Life Insurance can accelerate your Death Benefit in times of personal need!"
• Truth #4: "Permanent Life Insurance has many tax advantages!"

Truth #1: "Permanent Life Insurance is an Asset!" - An Asset is defined as Property owned by a Person or Company, regarded as having VALUE and available to meet debts, commitments or legacies. I am sure you would agree that Cash, Real Property, Precious Medals (Gold, Silver), a Business, Collectibles, Retirement Accounts, Annuities, Life Insurance are VALUABLE assets.

Life Insurance is an Asset. Car Insurance, Property Insurance, Health Insurance are not Tangible Assets that you can sell in the future, if you needed to. If you become terminally ill or contract a chronic/critical illness you can access your Asset, Life Insurance. In fact, you can sell your Life Insurance whenever you like through the Life Settlement process. Don't let anyone convince you that this is unethical. Your Life Insurance policy is your Asset and you can do what you want with your Asset.

Truth #2: "Permanent Life Insurance can accumulate cash!" - Your Permanent Life Insurance policy is composed of two things. First, it's a Death Benefit (Basically, Annually Increasing Term Insurance). This is the amount of money that the Insurance Company pays to your policy's Designated Beneficiaries upon your death. It provides Financial Protection and is typically Guaranteed for a period of time as long as your policy is in force and premiums are paid, in most cases.

Secondly, is the Cash Value. This is the savings or investment component of the policy that grows over time on a Tax-Deferred basis. As a Policyholder, you can access your Cash Value through loans, withdrawals, or by surrendering the policy, depending on the terms and conditions. The Cash Value can also help pay Premiums or increase the Death Benefit in some cases. How's that for Buying Term and Investing the Difference?

Truth #3: "Permanent Life Insurance can accelerate your Death Benefit in times of personal need!" - Can you image having an asset that not only protects your family or business partners in case you experience an unexpected death, but, also gives you Living Benefits during your Life as well. What does that mean? It means that if you experience a Critical, Chronic or Terminal illness while you own the policy, the Insurance Company will accelerate your Death Benefit and pay-out a portion of your Death Benefit, in Cash, to you to use in any way you like. Obviously, this Cash would normally be used by you to pay for products and services that will help you recover from or manage an injury or illness. WOW! This is HUGE. Why would anyone pass up the opportunity to own this "Swiss Army Knife of Financial Tools"?

Truth #4: "Permanent Life Insurance has many Tax Advantages!" - No one likes to pay excessive taxes! One of the many great things about Permanent Life Insurance is that it gives you a bunch of Tax Advantages. Let's take a look at them.

First, the Death Benefit of your Life Insurance policy is paid to your Designated Beneficiaries Tax-Free. This is not a myth, this is a Realty. A Life Insurances' Death Benefit is Tax-Free by Section 101(a)(1) of the Internal Revenue Code (IRC).

Second, the Cash Value that builds in your policy grows Tax-Deferred. Which means, the interest that your Cash Value earns in your policy, is NOT a line item on your Tax Return.

Thirdly, normally after the first year of your policy, you can access a majority of your Cash Value for whatever purpose you wish. At the beginning of the your policy, there usually is not of a lot of Cash Value, if any, but years into the policy there could be a significant amount of Cash Value, if the policy is funded properly. Most importantly, you can access your Cash Value Tax-Free as long as you access it as a Loan from your policy. This is a key advantage to you in your policy. Talk to one our Experienced Financial Consultants for more details on this policy feature. It's important to understand your policy features fully.

Lastly, the Living Benefits which I discussed above are also paid to you on a Tax-Free basis. This is because the Chronic, Critical and Terminal Illness benefit is an acceleration of your Death Benefit, which is paid Tax-Free by way of Section 101(g) of the Internal Revenue Code. (Please note that not all Permanent Life Insurance policies offer Living Benefit riders.).

I think you will agree that those are a lot of Awesome Benefits in one package.

Do not be misled by Unlicensed, Self-Proclaimed Financial Experts or Inexperienced MLM Insurance Agents. Unfortunately, they are all too common. Instead, Seek the Truth and rely on a properly Licensed, Experienced, and Knowledgeable Financial Consultant who has the Credentials and Expertise to Guide you effectively.

You now possess more knowledge about Permanent Life Insurance than many Agents in the industry. However, there are countless additional Strategies and Concepts to explore.

One of our Experienced Financial Consultants can provide deeper Insights and work with you to create a fully customized Financial Plan tailored to your specific needs and goals.

Don't wait to take Control of your Financial Future. Schedule a call with us today to evaluate whether our "Guided Prosperity Strategy" program is the right fit for you. Let us help you create a Solid Financial Plan that sets you on the Path to Long-Term Success and Security.

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