Have Your Cake (Life Insurance Money) and Eat It Too!

If you purchased a specific “High Early Cash Value” kind of whole life policy from Mass Mutual, for example, all your premiums will be saved as cash values inside the policy.  For example, if you were to deposit a premium of $12,000 a year into this life insurance policy, you can have well over $60,000 by the end of year five.  This will certainly be more than what you deposited.  Building cash value such as this is like having your cake and getting to eat it, too!
In addition, you can borrow from you own cash values to pay off debts and then pay back to your policy the same payment you made to the creditor, thus recapturing all principal and interest payments.  These payments made to yourself are like eating your own cake without your serving ever diminishing…  Let’s examine the details.
Do you know how much interest you will pay out to creditors over your lifetime?  The average amount of interest that my clients pay is $194,000 over the many years of owning a home, buying cars and paying on some credit cards.  If you were to pay this $194,000 to yourself through your life insurance policy and get a 3 percent gain each year on all these payments, you would have accumulated $1 million of cash values over the life of the policy.
For this discussion, I am not talking about the death benefit, or the tax-free status on the growth, just the amount saved within the life insurance policy itself.  Pretty impressive, huh? Let’s say you never use your death benefit, but just use the cash value while living to pay off debts and then pay yourself back the principal and interest expenses.  You will have created over $1 million in the life insurance policy that can be used for retirement income, or starting a new business, or paying children’s college tuition, or investing in rental income properties, or myriad other wonderful opportunities.
What might be the catch, you may be thinking… or is there one?  There is no catch. The only requirement is to act NOW and start saving money into a life insurance policy.  The money is safe as it can possibly be (much safer than your 401(k) money you keep squirreling away each month that is subject to serious market drama), and this is especially true for such companies as Mass Mutual, that has an A+ rating for financial strength.  They are over 150 years old and have helped millions of people with their financial needs through two World Wars and the Great Depression.
How can I get started saving money?  Please refer to my recent post in this blog called, 6 Tips for Finding Money You are Wasting.  From these “money-finding” activities alone, you should be able to save at least 5 percent of your annual income each and every month.  
Contact me for details of how to create a properly structured whole life policy that builds cash values. If you need help with saving money, I stand ready to help you with that too.  Here is my email:  www.peter@moneymastery.com.