Hi Druid. It’s very simple, one of the best policies out there.
As an example:
Your income is $6K a month. (business owners used $150K-$200K + a year, regulated by MEC)
You open a policy for that amount= $6K x 12 = $72K a year.
You call the carrier within a week, ask for a loan for up to 80%-90% (from the premium, you deduct the cost of insurance=premium=based on age and health)
So, as I was saying, you loan $4,800 every month, you have loaned $57,600 but you still have $72K in your policy earning from 0 (2008) to 12%. Say you do that in 30 years, not completely sure, but if you are young, age 30 < >, it will give you $300K- 500K income a year at age 65-70. Tax free! And this is based in a 6.9% return. You never lose your principal like in 2008 and some other years.
Last 20 years, it has given 8% return.
I would, without any proof, but based on number on illustrations, you will get 30 times what your total premiums were, every year! In 30 years you paid premiums totaled $360K, that’s what you are going to get, more or less, every year. Again, this is based on an assumption that the market behaves like it has behaved in the last 20 years.
The beauty of this is that we use an IUL, an indexed universal life insurance. You never get to lose your principal, only pay for the cost of insurance.
The amount above, will probably give you $3-$4 million death benefit.
The death benefit pays the loans when you die.
Death benefits increases every month-year, which allows you to use a loan rider. Rider cost increases if your premium increases. This is a flexible policy, your premium can be lowered if you get into economic situations.
Policy has living benefits. Critical, chronic and terminal. For free. If you get sick, the amount of the death benefit will be used to prorate your payout, depending on the seriousness of the disease or medical problem. You don’t need to die to get $, 70% of Americans suffer heart attacks and whatnot. They die half way, and that’s devastating for their families stuck with long term care. LTC puts millions of American in BK.
Very simple, straight forward policy. The healthier/younger you are, the less your cost of insurance and more returns you get when you retire. This is not a “I will be rich next morning” scam. It starts to see returns in 7 years, enough to pay for the premiums. All of that with the money you spent every month.
I hope I didn’t confuse you.