Private Reserve Strategy > Why Proper Funding of Life Insurance is Important
Why Proper Funding of Life Insurance is Important (especially for the Private Reserve Strategy)
We believe cash value insurance policies need to be funded properly. They need to be used as places to store and accumulate (save) money that can be completely controlled by the client.
Many advisors received little or no training on dividend-paying whole life policies and don’t understand the riders used to turbo charge the growth of the policy. Adding these riders can give a policy owner up to forty times more cash value at the end of the first year than they would have with a traditionally designed whole life policy.
We help clients implement this kind of policy and take a 50 – 70% pay cut to do it, something not all advisors are willing to do. We take this pay cut of 50 – 70% because we want your premium to be directed into a “paid-up additions rider” that turbo charges the growth of your cash value, but pays the agent virtually no commission. Most industry training programs don’t cover this type of policy at all, partly because so few companies offer it.
Also, some advisors will try to steer you toward a different product because they are “captive” agents whose contracts restrict them to using only the products of specific companies. Most advisors “don’t know what they don’t know,” so buyer beware! And if your advisor or insurance person tells you he/she already understands all the important details necessary to help you implement and benefit from this strategy, you may want to ask him/her, “If you could have done this for me, why didn’t you?”
No other life insurance product comes with as many guarantees as dividend-paying whole life, and it is the only one recommended for using as a Private Reserve Strategy.