7. No exit strategy. Early withdrawal penalties, over-the-top borrowing rules, daunting taxes, these are all incentives never to touch the money, ever. How are you going to get your money out if without taxes and fees? What If You Are Uninsurable, You're a Smoker or You're Just Too Old? UNINSURABLE Is there a family member that you have an insurable interest in? This is my story: My Great Granddaughter – Age 2 Annual Deposit into Emma's bank $3,000 I Stop Depositing after Age 23 (No more deposits)
Cash Value in Policy in 21 years $102,816 Cash Value in Policy in 22 years $108,560 Annual Increase in Value $ 5,744 Rate of Tax-Free Return 21-22 ~5.9%* Paid-Up Life Insurance Benefit $574,971
An insurable interest in a person could be a business partner, children or grandchildren, or anyone that would cause you an economic loss in the event they should die. But the bottom line is that you control the money, you own the policy! When I bought a policy just like this for Greyson at six months old, the IRA would only allow me to deposit $1,600 into his account. They have made it more difficult to put money in life insurance because it is a really good Tax-Free financial strategy for building Tax- Free cash value. Using Privatized Family Banking (PFB) for your children's or grandchildren's educational funding makes so much more sense when
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