“The quickest way to double your money is to fold it up and put it in your back pocket.” — Will Rogers
Myth #6: There is no way a life insurance company can guarantee anything in their cash value policies. This is all just a big trust me" scam. I could do better if I took the money and stuffed it under my mattress or, better yet, put my retirement savings where they belong — in a 401(k). Fact: I'm not sure when people started believing that stuffing money under mattresses was safe, but in any case, this again is simply untrue. The guarantees provided by permanent life insurance come from bonds and bond-like instruments that the insurance company holds. I always recommend A+ Superior, permanent life insurance companies. A bond is a long-term IOU. It is a contract that represents a loan from a corporation or the U.S. Government. With a bond, you know up front exactly how much interest the bond will pay, and what the terms are, and these returns are guaranteed. The only real risk taken in a bond is whether or not the institution will pay. If the institution that is issuing the bond can meet its financial obligations, then it will pay the interest specified in the bond every year and no less. I have never heard of a person losing money with a life insurance company that has an AM Best Rating of A++ Superior. Myth #7: Cash value life insurance is a rip-off because if I ever want to access the cash value of the policy, I have to borrow it and pay the insurance company interest. Why should I have to pay the insurance company to use my money? Fact: You are not borrowing your own money. In fact, it's impossible to borrow your own money. It's idiotic that the anti-cash value crowd insists on saying that you are, especially when those TV gurus should know better, but most have no credentials such as a Chartered Life Underwriter
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