What is Life Insurance?

Life Insurance is a contract between a policyholder and an insurer, where the insurer guarantees a payout to beneficiaries upon the policyholder’s death. It provides financial protection, estate planning benefits, and, in some cases, cash value accumulation.

Types of Life Insurance

1. Term Life Insurance – Coverage for a specific period with no cash value.
2. Whole Life Insurance – Lifetime coverage with a guaranteed death benefit and cash value accumulation.
3. Indexed Universal Life Insurance (IUL) – A flexible policy where cash value grows based on stock market indices.
4. Cash Value Life Insurance – Permanent life insurance that builds savings within the policy.

What is an Annuity?

Annuities are financial products that provide guaranteed income, typically during retirement. Annuities can be:

• Fixed Annuities – Offer guaranteed interest rates and payments.
• Variable Annuities – Payments vary based on investment performance.
• Indexed Annuities – Returns linked to market indices like the S&P 500.

Infinite Banking with Cash Value Life Insurance

Infinite Banking is a strategy using cash value life insurance to create a self-financing system where policyholders borrow against their own policy instead of using banks.

Premium Financing for High-Net-Worth Individuals

Premium Financing is a wealth-building strategy where high-net-worth individuals finance large life insurance premiums instead of paying out-of-pocket. This helps preserve liquid assets while securing estate protection.

The Section 125 Plan & Cafeteria Plan

A Section 125 Plan (also known as a Cafeteria Plan) allows employees to pay for benefits like health insurance and life insurance with pre-tax dollars, reducing taxable income and increasing take-home pay.

What is the difference between Term Life and Whole Life Insurance?

Term life insurance provides coverage for a set period, while whole life insurance lasts a lifetime and builds cash value.

How does Indexed Universal Life Insurance (IUL) work?

IUL links cash value growth to a stock market index, offering upside potential while protecting against market losses.

Is an annuity a good investment for retirement?

Yes, annuities provide guaranteed income, making them a reliable choice for retirement planning.

What is Infinite Banking?

Infinite Banking is a wealth-building strategy where individuals use cash value life insurance to create a private financing system.