There isn’t a single financial vehicle that has the flexibility of a properly designed whole life policy, especially if it is a mutual one.
It is also the safest financial vehicle in the world for the last 200 years, thriving during every financial disaster in that time. It has grown produced annual dividends higher than the stated inflation rate in each of these years.
But there is one thing that makes a well designed whole life insurance policy special. It is just like owning your very own credit card with a credit limit that goes up each year.
A well structured whole life insurance policy should encourage huge cash values immediately. You can borrow the cash value from this policy just like you can borrow funds from a credit card company.
It acts just like a credit card. Except it’s your credit card and you own the funds inside. That also means you should try to pay back your policy loans even though you don’t have to. When you pay back these loans, you can use that money again for the next expense…such as groceries or your mortgage.
Each year the available cash value grows with each premium payment and annual dividend.
If you remember the two rules to guarantee yourself a rate of return , a whole life policy allows reduce your cost of borrowing… because you are borrowing from yourself.
The average people spends 34% of their income on interest and loans and credit card costs. You can capture that 34% by borrowing off yourself.
Financial abundance does not start with making a higher rate of return from investments. It starts with re-capturing as much of that money you are losing from credit cards, loans and mortgage payments, as possible.
And if you like trying your hand at investing, you can double dip by using the cash value from your policy to pay for your secondary investment. Check out the double dip investing strategy.