Term or Whole Life Insurance?

Most people I encounter who own life insurance typically only have term insurance. This is often because their friends and family have only ever had term insurance. So when faced with the choice of purchasing a permanent life insurance policy like a Whole Life insurance contract, people will struggle with the decision to do something that is unfamiliar to them.

To compound the difficulty in making such important and potentially a life or generational altering decision, most financial advisors and life insurance agents are not properly trained to structure a Whole Life contract the way the authorized advisors with Bank on Yourself are taught to do.

The conventional wisdom about Whole Life insurance is that it's unaffordable. This couldn't be when you  further from the truth!  It's only expensive if you work with an advisor or agent who doesn't understand the mechanics of how a Whole Life policy works and is unable or unwilling to properly design a policy for you!!

The big secret about a properly designed Whole Life policy is the application of special riders that reduce the cost of insurance and build cash value from the very first premium payment. These special riders allocate the majority of the total annual premium into the savings portion of the policy which puts the cash value growth on hyper-drive.

When the premiums dollars in a Whole Life contract are properly allocated, the commission an advisor receives is nearly 100% bypassed. In fact, an advisor or agent who utilizes these special riders goes from making up to 100% of the annual 1st year commission on the total premium to just 1.5% on the portion of premium allocated into these special riders. On a typical Bank on Yourself Whole Life contract, 50-70% of premium dollars are allocated towards these little known riders.

So if less premium is going to pay a commission on a Whole Life product, that means 50-70% of the premium is going to your cash value right away! Is it any wonder why advisors and agents fail to structure a Whole Life contract that best serves both your short and long term planning needs? Don't get too mad at them if you already a Whole Life policy though. It's very likely your advisor was never trained to structure a Whole Life policy the way Bank on Yourself certified advisors are trained to do so. Having been part of two very well known and respected insurance companies as a career agent, I can tell you firsthand, the financial planning community doesn't teach what I offer in my private practice. More on this below.

Another fallacy about Whole Life is that it has an investment component built into it. Whole life policies are NOT investments.  Whole life policies actually have a savings component, NOT an investment component. What's the difference? Saving accounts are engineered to protect and grow assets. They are never exposed to the risk of market loss. A whole life contract guarantees to grow the cash value each year. The only type of permanent life insurance with an investment component is a variable universal life policy which like any investment has the potential for both loss or gain. I would stay away from those.

By comparison, term insurance has no savings component. It is purely a death benefit policy that offers a fixed premium for a fixed "term". For individuals and families on a very tight budget, it is the optimal way to afford life insurance and the correct recommendation. For individuals and families who have more discretionary income to put toward savings, there is a better way to structure a life insurance portfolio by often combining both term and Whole Life insurance contracts.

Probably the most surprising fallacy is thinking a fee based and/or Certified Financial Planner will know how to structure a well thought out life insurance plan. While a fee based advisor is a good option in general, for specific life insurance purposes, I'd recommend an advisor who understands how to use single and level paid up addition riders on a whole life contract combined with term insurance to properly design an affordable and flexible life insurance portfolio. If they cannot sit down with you and show how your premium dollars are being allocated into the special riders I focus on, then they are not going to be able to explain the benefits these riders provide.

My experience with fee based or Certified Financial Planners I have interviewed is that they have never been taught to use paid-up-addition and term riders to make a whole life policy both affordable and flexible. They also have never been taught how to create a banking system utilizing Whole Life policies.

Having been thru the CFP curriculum with the American College the oversight in the coursework regarding life insurance planning is quite telling. A properly structured whole life contract not only provides an increasing permanent death benefit but an accessible, tax-favored savings account in the form of available cash values, too. This type of IBC designed Whole Life  is not the same type of policy that is commonly misunderstood and generically sold by the financial planning industry.

Bottom line, people will always stand to benefit from having a savings account and no widow or beneficiary will ever turn away an income tax-free transfer of wealth. If your budget has room to put away money for a rainy day and you would like to have that money work for you without exposing it to risk of loss and future taxes, it'll interest you to see how you can expand the life insurance protection you provide to your loved ones by using the same dollars you'd otherwise put in a bank at a lower rate of return, or possibly at risk of loss in the stock market.

For a private consultation, you contact me here:  www.IBC.guru.  And to answer the question at the top: Term or Whole Life? It can be a blend of both.

Thank you,

John Montoya

A Broken Record of Broken Promises

This last video isn't a broken promise. President Obama was caught on open mic saying, "after the election, I will have more flexibility". In doing so he is inadvertently saying that he can not bend for purposes of being elected, but will do so afterward. It is an admission that he will say and promise one thing, but will do something else afterward. From the previous videos, we know this to be true.

Since our government can't keep it's promises, how safe do you feel knowing your largest retirement nest egg is in the hands of government via your 401k and/or IRA?

Believe it or not, the federal government is already working on ideas to nationalize these accounts. Read more here: http://jlmwealthstrategies.blogspot.com/2011/08/google-401k-nationalization-and.html

Feds Looking To End 401k Deductibilty (and hopefully your gullability)

Gullibility is defined as a failure of social intelligence in which a person is easily tricked or manipulated into an ill-advised course of action. We've all heard a sucker is a born everyday. If that's case, we are certainly living in the land of plenty. At this point in our country's legislative history we all should know better than to trust even the best intentions our government has for us. Promises made by government typically end up broken but it doesn't stop us from believing next time will be different.

How gullible are we? Here are two examples without having to blink.

First, without getting into the Ponzi scheme that is the Social Security program, I'll simply remind you that our social security benefits were promised to be tax free. President Reagan buried that promise in the early 80's. Currently up to 85% of social security income can be taxed as ordinary income.

Secondly, when the 16th amendment was passed in February 1913 creating a federal income tax, people were fooled into believing that federal tax brackets would remain low. According the Tax Foundation, the top tax bracket in 1913 was 7%. Believe it or not, the top tax bracket was once 90%! The current 35% top bracket seems like peanuts in comparison, but with the national debt exploding, most logical people are beginning to realize that lower federal taxes aren't coming any time soon.

So what is a bloated Federal Government to do to raise badly needed revenue? At a time when the IRS is busy squeezing every dime it can get from it's citizen base, there is over $18 trillion in untapped assets waiting to be taxed in the form of 401k's and IRA's. That money isn't safe. The Feds will eventually get their hands on that untapped nest egg, too. But that's a story for another day.

The bottom line is this. The government wrote the rules that created 401k/IRA's and now with a desperate fiscal reality starting to coming into focus, they are looking to change the rules simply because they can. Anytime the government creates a contract, they have power to alter it to suit their needs. Right now, they are desperate and your loss will be their gain.

The Feds are looking at all the ways to collect as much revenue as possible in order to reduce the $16 trillion (and rapidly growing) national debt. What's the easiest and quickest way to increase tax revenue? The idea currently being passed through Congress is to eliminate the tax deductibility of your 401k contributions.

Are you beginning to feel like you've been gulled into one more failed government promise?

“Unlike the current system,” economist William Gale told Congress, “workers’ and firms’ contributions to employer-based 401(k) accounts would no longer be excluded from income and would be subject to taxation, contributions to IRAs would no longer be tax-deductible and any contributions to a 401(k) plan would be treated as taxable income.”

Read more:

http://www.nypost.com/p/news/business/plunder_CrD9s6MElVsEIJj2IVgHuK#ixzz1ssy3bGL2

This is just one more reason why you should be looking to bypass your 401k/IRA contribution and learn about the Infinite Banking Concept (IBC). IBC is a private savings/retirement strategy utilizing private life insurance contracts to protect, grow, and leave a legacy of wealth. It guarantees what a government approved 401k/Wall Street program cannot: a lifetime income.

These IBC contracts are the private citizen's best kept secret to growing wealth without worrying about the ups and downs of the stock market or without ever having to worry about Uncle Sam take a bite out of their money. They provide a guaranteed return (even when you use the money), liquidity (no early withdrawal penalties), and also have the ability to supplement your retirement with tax-free income.

Just because you're likely unaware of the benefits these private contracts offer doesn't mean they are new. In fact, they have existed for over 150 years but because banks and Wall Street don't profit from them, you've likely never heard of it. It's time to change that, don't you think?

You're an adult now. It's time to stop being gullible. If you're partnering with Uncle Sam for your retirement, all you're going to get are broken promises. Take control of your money and your retirement by getting it out of government hands.

Visit my site at www.JLMWealthStrategies.com to watch the videos and/or call me at (925)386-6639 for more information.  You can also go to www.FindOutMoreNow.com and use my promo code: JM66.

If you're still believe in government promises including those made by the current administration, check out the videos I have posted here: http://jlmwealthstrategies.blogspot.com/2012/04/broken-record-of-broken-promises.html

The Federal Reserve Is Stealing From You and The Entire World

Competition, Like A Banking Cartel, Is A Sin

Contrary to what the unsuspecting public thinks (if you even think about it!), the Federal Reserve was created to protect the interests of the largest banks. Quite simply, the Fed is a banking cartel. The purpose of any cartel is to eliminate competition. As Rockefeller once said: "Competition is a sin."

Forget what an establishment President (read puppet) aims to accomplish. The Federal Reserve is unelected and by controlling the money supply, it is far more powerful than a President held in check by the different branches of the government. As such, we will never see an end to Too Big To Fail Banks without the simultaneous end to the Federal Reserve.

Furthermore, OBama and Romney, if elected, have no interest in shutting down Fed operations which serve only to expand the interests of its shareholders: the largest banks. They are both part of the status quo and if you haven't figured out which presidential candidate wants to shut down the Fed, turn off the news and stop reading the mainstream press.

Go to youtube and listen to Ron Paul. It's time to wake up. Privatized banking is an individual solution to banking fraud that holds those who participate captive.

To learn more about Privatized Banking, please visit www.CashValueBanking.com or call (800)208-6141.