Richard CanfieldPodcast Host and IBC Advisor, Ascendant Financial · Authorized Infinite Banking Practitioner | Author of 4 Books

The Truth About Insurance Payout Risks

19 Dec 2024 · 0 min

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A short spoken segment from Richard Canfield (YouTube) that challenges a common public belief about life insurance payouts. Canfield argues that insurers face the greatest payout risk at policy issue (day one) and that risk decreases daily as the policy's cash value accumulates, making it progressively easier for the insurer to meet the death benefit obligation.

It's actually the exact opposite of what the general public usually thinks. It's not harder for them to pay the death benefit. It's actually easier. The hard point is on day one, every day thereafter, it gets a little bit easier for the life insurance company to actually meet their obligation. Every single day that that contract is enforced, that cash value builds up and up and up and up, and it actually is reducing the risk to the insurance company. The longer the policy is enforced, the less risk they have because they're building up the equivalency of what they need to pay the death benefit, fundamentally speaking.