be wondering why you purchased a permanent policy. And when done right, the death benefit isn't likely to be costing you much, if anything. Through the PB, over the long haul, your account will get to the point where the insurance company is paying you to have a policy with them. Myth #4: Instead of buying a cash-value life insurance policy, you would be better off getting a term policy and investing the difference. If a $100,000 permanent life policy cost $100/month, you could likely get a bigger term policy (i.e., $150,000) for just $10/month and put the extra $90 in a cookie jar or under your mattress. After 3 years, you would have $3,000, and when you died your family would get your savings. Fact: This is actually something Dave Ramsey uses as an example. If you invest $90 per month, even at a 10% NET rate of return, you have $3,791 after 3 years. Both Dave Ramsey and Suze Orman love to point this out and they say that there's nothing for close to nothing in your cash-value life insurance policy. Again, the Truth will set you Free. It's true. The first 3 years of most permanent life insurance policies have little or no cash values available for you to use. This is especially true when using a universal or variable life policy. However, this is not the case when using a high-grade, well-designed, permanent life insurance policy as the funding vehicle for your Privatized Family Banking (PFB). A person will normally have 40-50% of the annual premium as available cash value to be used as collateral for "big ticket" items from the get-go. And I don't like the way interest is compared using these kinds of comparisons because it compares the savings without the cost of the term added in. Remember, with permanent insurance, the savings and insurance are lumped together. When you figure out the effective yield on Ramsey's "superior" plan, it's a measly 1.73% (you contributed $3,000 over those 3 years with the cost of the term added in, and your total cash at the end of 3 years is $3,791). Ramsey loves to think that anyone can average 10%, 12%, or even 15% in their mutual fund for 20 or more years. However, on pages 155-156 of his
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