How Can You Use Life Insurance While You Are Alive?

When people think of life insurance, the very first thing they think of is the death benefit and only being able to use it while you're dead. But in today's video, we are going to talk about how you can use life insurance while you are alive and all the benefits it has associated with it. Shout out to Kim Butler. She wrote a book, one of the first books I ever read on life insurance, that says "Live Your Life Insurance," and it says something like a subtitle of like you should be the number one beneficiary to your life insurance policy.

And this concept is not foreign to us. Sometimes we take it for granted, but when most people think about life insurance, Dom, they literally think about an event that they hope doesn't happen. And by the way, everyone's going to die, but 98% of life insurance term insurance policies don't pay out. And when we think of insurance, when we think of life insurance, we literally think of something that we want to pay as little bit of premium as possible to have some type of death benefit so we can check the box, so we're not, you know, that type of person that like dies and leaves our family on the streets. So we want to check the box, but we ultimately never want it to pay out because that means we're dead, and we don't really want to pay a lot of money. So why don't we talk about, even like when you talk about living benefits, what's the biggest difference in that versus something else?

Well, our whole goal with the AND Asset is to help people show up more powerfully in their lives on a day-to-day basis. And the AND Asset, you know, which is essentially overfunded whole life insurance, has multiple benefits. We call it the Swiss Army knife of financial products because it has multiple utilities that are associated with it. When it comes to term insurance, it has one utility, and that is for protection. When it comes to the AND Asset, it has multiple benefits, right? And this is where we're going to spend time right now, talking about those benefits.

But ultimately those benefits help you show up more powerfully in your life because you're more confident, you're more powerful, you have the certainty of the protection, you have a liquid opportunity fund where you can make an impact in the world. I mean, there are so many things that if you get sick, you can tap into it that way. If you get disabled, there's other riders that you can tap into. There's so many benefits of an overfunded whole life overfunded policy, which we call the AND Asset, and we're going to talk about those with you today.

Yeah, so what we're going to do is I'm going to show you my screen, I'm going to put us in the corner. This essentially says a special type of life insurance, and the big epiphany here is number one, we want to maximize living benefits. So we want as much cash benefits as possible while minimizing the what we call the death benefit. And so essentially, again, it goes against the grain of what everyone teaches, but it's like, hey, we're gonna do this as an asset class. And we did another video about life insurance when set up and used properly is an amazing foundational asset. You want to put money into it, and you don't want to do this strategy if you can't put the certain money into it that can really make this worthwhile.

And so this is essentially some of the benefits, and take this all with a grain of salt. This has to be set up properly. But what I want to ask you is, as I go through these benefits, I want you to in your head rate them and say, how valuable is this benefit in my life? Because for someone like Dom versus someone who's, you know, in a different stage of life, they might value certain benefits different, and it doesn't make it right or wrong, it just makes some values more valuable than others.

So the first value to overfunded life insurance is it's safe. You're not going to lose your principal. You're not going to lose a ton of money if, you know, I don't know, like if the market crashes or whatever. And so there's a safety element of that, and life insurance is safe. It honestly might be the safest place to store capital. You could argue that it's even safer than the bank.

Yep. I mean, there's a lot of banks that went under in 2008, and there's hardly any, if any at all, insurance companies that went under, right? And on top of that, you see where banks are storing their capital, which is a lot of their tier one assets, which is in life insurance, because they know how safe it is.

That's right. Easily accessible. Again, I would say a bank account is the most accessible, but this is far more accessible, and you're not going to get penalties for accessing your money like you do in some retirement accounts. Competitive growth: we will have plenty of videos, ladies and gentlemen, on the actual rate of return, and when you understand the power of life insurance, it gets you a very good rate of return. It's never going to compete with great investments, but when you look at it as a like asset, I would say it gets an amazing rate of return when you look at all the other benefits that it does, when you really properly compare it to other asset classes.

Leverageable: welcome to the AND Asset, of this ability to utilize capital while your money continues to grow. It's one of the only paper assets that you can leverage your savings. Has some built-in guarantees. Now every contract's a little different, but every contract that we work with has some type of guarantees built into it, which is, how valuable is that? For some people, not so much. For others, it's everything.

No percentage-based fees. What do I mean by that is you're not going to be paying a 1% management fee for the money that you have built up over time. Commissionable products, you pay way less than a percentage base assets. That's a video that we need to make. Free of regulation: every state's a little different, but life insurance is contract law. We know some states that are very, very protected, and you don't necessarily have to be worried about, you know, Congress meeting and changing something. At the time of this recording, Congress has a lot of power in their hands. They can change some rules that could affect other people's retirement plans. This is not really going to be affected at all. No contribution limits. There is a contribution limits as it relates

...to the insurance companies and what they allow, but there's nobody like the government saying, hey, you can only put so much money in because of the tax benefits. And if you're creative, you can stuff a ton of money in, and it's really based on the contract and the company, not some limit that, you know, someone in Congress has made. You have creditor protections, which we mentioned. You don't, and this is gray area, but in most cases you do not get to deduct your contributions, and this should be something that we're proud of.

It's, you could say it's a Roth on steroids. If you get a deduction today by funding your policy, that means you have to give some tax benefit up in the future. And in a lot of cases, Dom, like, I look at where our country's going and I say I would rather have our money grow without taxes and be able to use it without taxes, and I'm okay if I have to pay, I don't get a deduction for the money that I put in. And then when set up and used properly, your money will grow tax-free, you can use it tax-free, and your death benefit, it passes on income tax-free. And so these are some of the benefits that are just truly incredible, and it's just one of those things that is, it's amazing.

Man, I don't know any other financial product that essentially fits all of those, right? A lot of financial products fit a couple of those, and they may outperform the AND Asset in one of those, right? But you look at it as a whole, there's nothing that I'm aware of outside of the AND Asset that has all of those benefits. Right, right.

And just, I mean, again, I'll say this a different way. I did a presentation for somebody and this is how I ended, just using case studies, and I'm going to go through this really fast. But life insurance has a death benefit. What's the value of a, it has the ability to, and I'm going to put ourselves in this corner here, our good friend Garrett Gunderson wrote a book, What the Rockefellers Do, and you start doing research on wealthy families, they use this as a way to replenish their family trust, but then also they utilize capital to reinvest in things that they value.

You know, we did this on our BetterWealth channel on how one of our co-founders that's no longer with us uses policy to buy cows for their family. They made money doing it, three thousand percent rate of return, and it also protected their family when he passed. Oh, people are gonna go find this video right now. That's right. This is science. Yes, it's amazing, it's a fun story.

You know, we have one of our clients and good friends, Gopala, who is crushing it in the option world. He's using life insurance. This is Justin Donald, I highly recommend people go check out his book, The Lifestyle Investor. He's an amazing case study and actually writes in multiple chapters how he used his life insurance to fund other deals and businesses. You made an appearance. Like, it's interesting, like you're using this as a foundational asset and as a way to create crypto returns. I'm hoping to buy a plane someday using this.

It's an amazing asset for your kids. You know, I did this episode with Jason Sanger, who's a phenomenal communicator as it relates to retirement income, and he's talking about giving yourself options. And you know, whether it's the volatility strategy, buffer strategy, which we'll have a video on this channel, whether it's a covered asset strategy, whether it's a reverse mortgage option. You know, Ernst Young, this is interesting, they did a study and they pretty much said that insurance works with investments and can improve your financial wellness, so this is something that we need to do a video breaking down.

Ed Slott, the father of the IRA, and has a phenomenal book that everyone should go get, has a whole chapter dedicated to life insurance and how it can enhance and be a good thing in retirement. Dr. Wade Pfau, who I've had on our podcast and show, has a really technical book where he talks about safety first retirement planning, and he talks about how life insurance can enhance your retirement income. You look at states like Florida, every state has amazing benefits as it relates to cash value, but not every state has it like Florida. And Florida, you're like, you get this, like you're good to go, like creditors cannot get your money, which is truly truly incredible.

I mean, this is sad, but like the Enron executives, they had some pensions and life insurance protected even when they tanked the company in fraud, because of how powerful contract law was. You have your chronic illness riders, which is very beneficial for the future. Waiver of premium. My thesis of you being able to save more, and my bad drawing that I love showing, and by the way, there's a protection, but like giving your dollars more than one job. The reason we share this, Dom, is like, I just want people to understand when set up and used properly, life insurance is not just a place for your money to grow, that's amazing, but there's so many other benefits. We have to put a value on those benefits to properly compare it to other places to put money.

I love, always at the end of videos you just go on rants and you crush it. You just, people get to hear your brain get spit out on video. It's a drop mic moment, and I promise you can't drop these mics. So yeah. Well, that was really good. That was actually something I wasn't even expecting that he was going to pull up, and I thought that was fire, so that's a good way to end the video.

Here's what I'll say. If you're interested in the AND Asset strategy and you're a reader, go get my book, The AND Asset, whether you can get it on Amazon, there should be a link down below that you can get it for 10 bucks. Read it, subscribe to this channel, start watching some of the other videos that we do, and start asking yourself, like, what is your goal? And if it, like, get really clear on that, and then ask yourself, can life insurance enhance my ability to live out that goal? And if the answer is yes, work with someone, whether it's us or somebody that you trust that understands this, that can help.

You translate that into results. So that is the message. Thank you. Comment below your biggest takeaway. We just appreciate you from the bottom of our heart helping us share this message with as many people as possible.