book, "Total Money Make Over," he tells his followers that the stock market has averaged just a little below 12% throughout its history. This is not only incorrect, but it is not the truth. If I made this statement, I would probably lose my insurance license. Oh, by the way, who holds him accountable for what he teaches? Who is the regulatory agency overseeing his actions? As I shared with you earlier, this was my financial strategy for the first several years in the financial services industry. That is, until I lost a large sum of money in the stock market, and my term policy was about to expire. I bought a new term policy at age 44 for $900 a year. I built no equity. It was like paying rent. When my policy was about to expire, 20 years later, for the same policy, the cost per year was $8,200, and all of it was going to rent my policy. The best day to own a term life policy is day one. After day one, you will begin experiencing diminishing returns because your term premium is going out the window as a lost opportunity cost, never to return, and never to compound on itself. Myth #5: Cash value life insurance is a complete rip-off. When you buy a cash value policy, you pay high premiums, and you start to build cash value, but when you die, the life insurance company effectively "steals" the cash value you've worked so hard to save up, and your family never sees a dime of that money. Fact: Cash value life insurance is not a "rip off" at all. The life insurance company isn't stealing a thing from you, or your heirs. There is no trickery or malicious intent involved at all. You are getting exactly what you paid for — a leveraged savings tool. When you die your family gets 100% of the accumulated cash value plus the net death benefit. Insurance companies will not "rip" you off because you have a contract and are protected by state law. Plus, your cash value will allow you to become your very own Privatized Family Banking (PFB).
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