Jayson Lowe explains why people buy whole life insurance with high cash value: control over your money, guaranteed returns, tax-free growth, and access to capital without triggering taxes. He positions these policies from mutual insurers as tools for families and business owners to finance lifetime needs and create an internal banking function.
Why do people buy high cash value life insurance? The primary reasons why are control, liquidity, contractual guarantees, shielding the accumulation of cash value from taxation, having ready access capital on demand, on your terms, without reducing the assets value and without triggering a taxable event, and to take care of terminal tax obligations and living tax obligations. So these contracts also referred to as dividend paying or participating whole life insurance policies, ideally with a reputable mutual company, these contracts put the owner, the policy owner, in a position of total and absolute control. And so when we're working with families or business owners, once they understand all of the financing characteristics of these contracts, they catch it. They catch it very quickly because they also recognize that their need for finance is going to be there with them and it's going to be extensive throughout the entire course of their lifetime or the entire course of operating their business or businesses. And so this particular type of contract, gosh, the list goes on. I mean, the primary reasons that I noted are just a handful of many as to why people purchase not one, but purchase a system of these contracts so that they can take control of the banking function as it relates to their needs or their company's needs.
