How Does Whole Life Insurance Work As An Investment?

 what's up friend kris krohn here your financial freedom fighter dedicated to your financial future in helping you unleash your financial destiny I've been financially free from the age of 26 and one of my life's purpose and passions right now is to help everyone else figure out how they can get their life put together to live life on their terms the way that they want I get questions all the time from people on different financial philosophies and strategies because I definitely think backwards than most people most wealthy people do and today what I want to do is I want to have this conversation with you about a recent question I got on life insurance and the question was how does life insurance work as an investment so today I'm going to talk about it is life insurance and investment is it an investment that you should care about and I'm gonna break that down for you is life insurance a good investment let's find out first of all let's understand what it is there are two types of life insurance one is called term and the other is called whole and whole life and term life are different from each other term is really cheap and all you're doing is investing in your death benefit whether it's a good investment or not yeah if you have loved ones that's an investment that will take care of them whole life insurance what it does it actually has a living benefit as opposed to just a death benefit which means that you can get a benefit not just your loved ones you both can here's how whole life insurance policy works number one when you put money every month into a life insurance policy it's like a forced savings account as if you will a small portion will go towards your death benefit let's say that I have a death benefit of three hundred thousand dollars if I were to die and then let's also say that I'm building some cash value I might have a payment of $400 a month or $200 a month or $100 a month or or three thousand dollars a month or a lot more for some of you they're using this as a rapid wealth strategy and a small percentage will go to the death benefit and then the rest of it is going to go towards building what's called cash value and this is money that you can access from the policy if you set it up the right way here's some of the benefits oftentimes with the banks that are out there that set up these policies I call them banks because that's really what they are this is you setting up your own personal bank and those banks guess what they're paying you they're paying you five percent dude what's your bank paying you probably a whole lot less and a normal bank if it is government insured will usually insured up to 250, 000 dollars here what I love about this type of Bank is that my money is entirely untouchable what I mean by that is someone cannot litigate and access this money and actually pull it out of the account it's yours which i think is pretty awesome the third benefit that I really love about this is that I can borrow my money out and what I can do is I'm going to build what I call a tax shelter the tax shelter means this every time I make a payment every month into building that account that pit gets deeper and deeper and deeper I can borrow the money I can use it to invest I can use it for business I can use it for a number of things and then when I pay the money back my money gets to grow tax-free at that dividend rate how cool is that like that's huge so based on this loan when people ask this question is life insurance and investment how is it investment well for me it's an investment different than the way most are looking at it check out my perspective the world first of all says hey you're earning 5% that's diversification that's better than your savings account that's probably not too different than your 401k in your IRA so yeah it's a good investment this is where I want to challenge that if all you're doing is earning 5% on your money you're screwed you're never gonna be able to earn enough money for retirement to get where you want to go because 5% compounding over time it is pathetic you've got to start super young and you've got to be often committed for 40 years maybe 50 years but I have the ability to pull this money out and I have the ability to put it into business I can put it into a number of other vehicles for me I dumped that sucker right into real estate why because I can get my real estate to produce 20% 25% I can produce much bigger gains and I'm doing that on properties I'm buying every single day of the week 20% is bigger than 5% in this scenario you can combine them together and you can get the benefits of both of them when I say that whole life insurance is a great investment I don't mean in and of itself I mean because in and of itself I get a death benefit I'm getting a dividend way bigger than I'm getting anywhere else no one else can touch it it's producing these awesome tax benefits but I can pull it out and guess what I can do I can put it right into the game of real estate and this is where it becomes extraordinary because now I can layer my banking policy with life insurance and I can layer it on top of my real estate and the two of them combined are significantly bigger and way more successful than they would be apart if you have learned the discipline of saving money then you should be saving money this way instead of just putting it into a silly bank account because every dollar that you have here gives you benefits that no ordinary or normal bank could actually ever give you and number two it's going to eventually be time for you to make your move there's gonna be an amazing deal a business acquisition a business that you want to start a real estate deal something where you're saying it's time to get some super leverage I need to extend my arms of leverage and how am I going to do that I'm gonna do that by accessing my whole life policy I'm gonna put it in my investment give me an opportunity potential for some higher returns pick up dual benefits my friends for me that is not only one of the most sophisticated approaches to real estate investment in business but it picks up all these other benefits that you can't find anywhere else now here's the downside you could talk to anyone who sells life insurance and they would love to sell you a term policy or whole policy but very few know how to structure a policy that gives you all of the benefits designed for future investing which means that you've got to find the people out there that know how to do it now I've only met three people in the last decade that know how to structure these in a way that really benefits you and I with our future investments and what I've done is if you click the link below I'll give you immediate access to a list of the people that I work with people I've worked with that I implicitly trust that have your best interests at heart now whether you're just starting to get ahead or whether you've been in the financial game for a long time the time to set up a whole life policy that supports your investments is now the longer you have it the better the advantage and if you already have a life insurance policy but it's not designed to give you this benefit it is time to make a changeover and the individuals in the link below can totally hook you up help you out and get you exactly where you need to go hey my friends thank you so much for watching today make sure that you ring that bell after you subscribe because you're a subscriber right if you're subscribing you ring that Bell I'll be able to notify you every day when a brand new video comes out and just understand this channel is designed to strengthen your pocketbook and your mindset at the same time so that you can live life on your terms because by the way my friends you got this one life to live have it all