When purchasing a whole life insurance policy, even if it is not going to be used for banking purposes, be sure that a substantial amount of paid-up additions is included in your policy. There are two main reasons for our advice.
- The paid-up additions increase the efficiency of your policy in the sense that you will end up with more cash value and more death benefit than in a traditionally-designed whole life policy with all base and no paid-up additions.
- In a traditionally-designed whole life policy, you need to pay 100% of the premium every time regardless if your cash inflow has temporarily decreased. Nevertheless, in a whole life policy designed with paid-up additions, those paid-up additions are discretionary and you don’t have to pay them if you cannot afford them or you don’t want to. This increases your financial security and your peace of mind.
Also, you should be aware that in a traditionally-designed whole life policy with all base and no paid-up additions, the financial professional that designs that policy gets between 20 and 60 times more commission on the base than on the paid-up additions.
If you would like to learn how you can grow a substantial amount of cash that you have access to at any time without penalties, is unrelated to the stock market, and will generate income that is not included in your tax return, visit our website at http://dev.infinitebankingsimplified.com/blog/ or feel free to email us your questions at ContactUs@InfiniteBankingSimplified.com or call us toll-free at 1-844-443-8422.
Isis B. Palicio, LUTCF, MBA
Pedro A. Palicio, MBA, Ph.D.
Infinite Banking Concepts® Authorized Practitioners