Jayson Lowe explains dividend-paying whole life insurance as a financial tool that builds guaranteed cash value you can borrow against for cars, businesses, or real estate. The cash value grows daily, can't be repossessed, and reaches your death benefit by age 100. He argues it gives you control over your own financing instead of relying on banks.
By age 100 of the life insured.
What is high cash value life insurance? So what we're referring to primarily is dividend paying or otherwise known as participating whole life insurance offered by a reputable life insurance company. So this is a, a contract, an insurance contract that has a death benefit component and immediately begins accumulating a cash value component. Now that cash value is not money, it's the present value of the future payment of the death benefit. But what the policy owner is able to, especially when you're dealing with individuals, families or business owners, is that you can borrow against that ever increasing accumulation, which is contractually guaranteed to grow and it becomes enormous. Hence the term high cash value life insurance. And the way that we engineer these contracts is for that cash value to begin piling up rapidly right from the onset of the policy. You can borrow against that ever increasing accumulation to control how you finance all the things that you need throughout your lifetime. Whether that's vehicles, business equipment, properties, your home, post secondary education, anything that you would have otherwise paid cash for, leased or financed. You can utilize your policy or your system of policies to put yourself in a position of total and absolute control over how you're financing those things. And when you get access to capital to finance those things by way of policy loans from the life insurance company, you're never interrupting the daily growth of your cash value. It can't go backward. Regardless of what's happening in politics, regardless of what's happening with tax law, regardless of what's happening with the real estate cycle or the economy, your cash value inside of this insurance contract is contractually guaranteed to rise daily. And it cannot go backward, it can't be repossessed. It's going to keep going up and up and up until it matches the total death benefit of the policy by age 100 of the life insured. And so if you think of logically, your money must reside somewhere. If you know that you can contribute almost unlimited sums into a contract like this, that you have ready access, capital on demand, on your terms. You pay no tax on the daily build up, you pay no tax on the death benefit proceeds. You are in a position of total and absolute control as it relates to financing the things that you need. Logically ask yourself, how much of your capital do you not want residing there? And then from that place you, you can go and achieve all of your other financial objectives.
