There are so many things that are outside of our control! But that doesn't have to include your
MONEY. Using your permanent life insurance policy, you can add more financial flexibility and control as you grow your wealth.
Your permanent life insurance policy with cash value can put you back in the driver's seat when it comes your finances and here is how:
1) Set your own limits for tax-advantaged investing - While we have other tools available that allow tax-advantaged growth - RRSP, TFSA - the government sets the terms and the limits. With investing inside of your permanent policy, the tax-advantaged investment room is determined by the coverage amount and the policy type.
2) Access to cash tax-free - With most other investment options, it's near impossible to completely avoid taxes. However, investing in your life insurance policy allows you multiple ways to access funds tax-efficiently - policy loans, collateral loans. You could create a tax-free (or almost) retirement!
3) Lending terms - To get lending from a bank or private lender, you basically have to tell them all your secrets. The qualifying process can be brutal - credit checks, income verification, guarantees. Phew! Being able to access a loan from the insurer based on your cash values is built into your insurance contract, no questions asked. It's merely a matter of directing the funds. Plus, the loans are unstructured, which means you decide how you pay it back. And don't get me started on the lower than market interest rates!
4) Options - In most instances, investing is an either/or situation in that you can only direct your funds to one opportunity. If you had a stock portfolio and wanted to purchase a property, you would likely have to liquidate your stock portfolio. Not so with your cash value. Keep your cash value and leverage it to pursue that attractive opportunity too!
5) Decide your legacy - You don't have to be a millionaire to create a millionaire legacy. For pennies on the dollar, you have the power to change the wealth trajectory of your heirs. And the legacy provided by life insurance is tax-free!! Plus, by naming beneficiaries on your policy, the payout avoids probate! OMG!
Just in case it wasn't clear, utilizing your permanent life insurance policy - as the powerful financial tool that it is - grants you liquidity, use and control of your money.
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