The Best Place in the World to Save and Distribute Money

The Best Place in the World to Save and Distribute Money

August 31, 2021
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The World's Best Account

What would you say if I told you the life insurance industry is the world’s safest industry?

What if I shared that the life insurance industry can provide a strategy that yields 20 to 30 times the safe money yield of a CD or a savings account?

What if this strategy had guaranteed return in most cases with no downside danger, only upside opportunity?

What if I told you this wonderful strategy would never have to be reported to the Internal Revenue Service or reported on a FAFSA?

What if this strategy allowed its values to be accessed at any time without penalty and have always been available during serious economic downturns?

What would you say if I told you that you could use the values in retirement to provide a 100 percent income tax free supplement to your retirement that you couldn’t outlive?

Would you want benefits like those listed above for yourself and your family?

What do most people believe you have to do to collect on life insurance? Isn’t it that they must die?

How many people are aware of the spectacular LIVING benefits of a cash value life insurance policy? Isn’t that why we call it life insurance? Have we ever paid any benefits to a dead person? Of course not. 

The benefits are available to take care of the people we love and the businesses we’ve created and the charities we want to support.

What if I could show you all the living benefits of a cash value life insurance policy? Would that help to clarify why so many leaders and financially well-off people own enormous amounts of cash value life insurance?

Do you know almost no one knows how wonderful these plans are?” Do you know why?

It’s because government places tight restrictions on the advertising of these accounts even though they are 100 percent legal. Why does the government and the Internal Revenue Service wish to keep these accounts a secret? ..more on that later...

But another reason is that the big money - Wall Street and most 'brokers' - from your Joneses to your Lynchs - simply can't offer them - at least the best ones! It's not in their business model - which is to manage assets for fees. They would be fired if they offered them.  So they disparage them and simply refuse to open their minds to learning the benefits.  

Who Uses These Accounts?

  1. President Kennedy had substantial life insurance holdings.

  2. Many other presidents owned large life insurance holdings

  3. Franklin D. Roosevelt held a significant portion of his wealth, $562,000 in cash value life

    insurance, which is equivalent to over $7 million in today’s dollars.

  4. John McCain funded his presidential campaign with the cash value from his policies.

  5. Joe Biden has six policies with Mass Mutual Life Insurance Company, according to his executive branch personal “Public Financial Disclosure

    Report.”

  6. Hillary Clinton has at least $100,000 of cash value in her life insurance policies.

  7. In 2014 Johnson & Johnson executives put $23 million in cash value life insurance.

  8. John D. Rockefeller used cash value life insurance to build and PRESERVE wealth for his family. The Rockefeller method was created to share how his family used and continues to use cash value life insurance. When he died in 1937, John D. Rockefeller was worth an estimated $1.5 billion. That is equivalent to somewhere between $243 and $341 billion in today’s dollars.

  9. Walter Chrysler and Pierre S. DuPont had $274 million in cash value life insurance.

  10. Billionaires Bill Gates and Warren Buffet found a way to invest a combined $1.5 billion in cash value life insurance for their foundation.

  11. Bankers, Wall Streeters and Fortune 1000 executives use these accounts extensively building tax free pension plans and highly leverage death benefits. 51 percent of money and equity managers own a zero stake in the funds they manage. Most own enormous amounts of cash value life insurance. They ask you to invest with them while they invest no money in the investments they manage. What does that tell you? Shouldn’t we ask what that means?

  12. Ben Franklin left two $4,400.00 gifts, one for Boston and one for Philadelphia. The two cities have collected over $8 million thanks to that $8,800 gift. They have received 900 times more than the gift.

Life Insurance gives the owner LUC: Liquidity, Use, and Control of the funds.

Approximately 3800 banks own more than $190 billion in cash value life insurance.

  1. Bank of America – Has more money in cash value ($22 billion) than all the value of it’s 5600 branches and the second tallest building in Manhattan, valued at $12.9 billion.

  2. Citi Bank Has approximately $6 billion in cash value life insurance and has less than $5 billion in other assets

  3. J.P. Morgan Chase Has $11 billion in cash value life insurance and around $11 billion in other assets.

  4. Wells Fargo Has $19.3 billion in cash value life insurance and only around $10 billion in other assets.

  5. Bank of America Owns $22 billion of cash value life insurance while only having around $15 billion in other assets.

  6. PNC Financial Has around $6.1 billion in cash value life insurance and less than that in other assets.

According to the Federal Deposit Insurance Corporation (FDIC), the largest 38 banks in America have invested over $140 billion in cash value life insurance, Sixty-eight percent of these banks have more money in cash value life insurance than they have invested in skyscrapers, IT networks, and bank branches.

Why do Banks own so much Cash Value Life Insurance?

Banks are required by regulators to keep large amounts of cash on hand to meet unexpected obligations. This cash cushion must be unassailable. Banks must be able to access this cash immediately. They cannot put this money at risk.

Regulators call this TIER ONE CAPITAL. By law, banks must keep four percent of assets in Tier One Capital. Using cash value life insurance was so attractive, the Federal Reserve had to make a rule to limit how much cash value life insurance banks could buy.

Even the longest maturity bonds fail to meet the ultra-long duration characteristics and holding a dedicated portfolio of bonds to maturity poses other risks that properly structured BOLI can mitigate.

Bank Owned Life Insurance (BOLI) has two additional attributes that can make it an effective vehicle for financing general welfare costs

  • Accounting for BOLI is favorable
  • Growth of policy cash value is tax deferred.

When coupling the favorable accounting with tax deferred growth, BOLI is immediately accretive to earnings and can make for an attractive, long-term balance sheet asset.

Currently banks are only allowed to keep a maximum of 25 percent of their Tier One Capital in cash value life insurance. Banks buy ALL they are allowed to buy.

Safe Assets

Please consider this information if you think or believe an economic disaster is coming. 9000 banks went bankrupt in the Great Depression. Less than 2 percent of life insurance assets were impaired. In 2007 and 2008, 450 banks went bankrupt and less than 1 percent of the life insurance companies assets were impaired.

Do you know that you can also verify life insurance safety at the American Council of Life Insurers (ACLI). When you get to the website if you compare assets to liabilities you will discover that the life insurance industry can pay EVERY claim it has and still have a surplus. ...do you know and understand how safe cash value life insurance is?

While the Wall Street Journal² laments these policies have become a 'tax shelter for the rich', middle-class people need to think - and ask themselves why they aren’t using the same techniques that are helping the wealthy get and stay wealthy. Wouldn’t that be the most effective way to build financial and retirement success?

Ask yourself why all these people use cash value life insurance if it’s not a valuable piece of a successful financial and retirement future.

Do you know why the government restricts the advertising of cash value life insurance? The government places tight regulations and controls on the advertising of these accounts because once your money is in them, the government and the Internal Revenue Service “Can’t Make A Dime Off Them!”.  As Ed Slott says, you have moved your money from 'forever taxed to never taxed'!

That raises another question. If the government needs more revenue in the future how much longer do you think cash value life insurance will be allowed to exist in its present form?

That raises a final question. Won’t it then be true that the only people allowed to own cash value life insurance, with all its current benefits in the future, will be the ones who owned it before the laws change?

Who else has used the benefits of cash value life insurance to enhance their financial life?

  1. Walt Disney used the cash value from his cash value life insurance policy to help build Disneyland, when banks were hesitant to loan him money. Isn’t it true that banks only loan money when you really don’t need it? Wouldn’t it be nice to be the loan officer of your own money? 

  2. John Cash Penny used $3 million of his cash value during the Great Depression to keep his stores afloat. He eventually built J.C. Penney into a 1000 location company valued at $3.4 billion.

  3. Ray Kroc used the cash value of his life insurance to start McDonalds. Isn’t having access to money at pivotal times vital to taking advantage of business opportunities?  Shouldn’t business owners be made aware of this information?

  1. The Rothschild Family

  2. Doris Christopher, The Pampered Chef. With an entrepreneurial spirit, a $3,000 loan from an insurance policy, and the belief that shared mealtimes have the power to change lives, Doris Christopher founded Pampered Chef from the basement of her suburban Chicago home in 1980. 

  3. John Belushi

  4. Andy Warhol

  5. Will Rogers

  6. Jim Harbaugh, football coach, Michigan. Jim Harbaugh was the highest-paid college football coach. Now he’s top 3. But it’s not just because of his generous salary. The genius part is how his life insurance creates income at a level many times what Michigan is paying for it.³

These are just a few names. Why aren’t more names known? Because insurance is private and is outside the purview of government and the public. We do not know the full extent of how much permanent life insurance is being used by individuals, businesses and charities. What we do know is this; cash value life insurance is used extensively by people who understand all the benefits that are provided by this product.

If you can find any other financial product with this combination of benefits, please tell us about it! 

With permanent life insurance you can...

 Grow your money at up to 7% over the long term
 Have a contractual guaranteed minimum growth rate
 Compound your money tax-deferred (pay no taxes on gains each year)
 Completely avoid risk of principal loss—meaning you can sleep at night knowing your account balance won’t go down in value (even if the stock market crashes 50% tomorrow)
 Safeguard your money in a place with a century-long track record
of safety.

It’s such a safe vehicle that you can also…

 Protect your money from creditors or lawsuits (in most states)
 Contribute unlimited amounts to it (unlike an IRA or 401(k))
 Avoid reporting it to the IRS come tax time
 Access your money anytime without penalty or withholding taxes
 Build a line of credit to use for any reason—no questions asked.

As you can see, there are many benefits to cash value life insurance. Two different people might choose to open an account for totally different reasons. That’s one of the things that makes it such a powerful financial tool.

Final Two Questions:

How many savings accounts and CD’s the banks own?

The answer is ZERO.

How much do the banks own of cash value life insurance?

How many are surprised to find out that the number is more than $190 billion?

These amazing assets are NOT just for banks and the wealthy. Find out how you can take advantage of these amazing tools today: Request Your Free Analysis

¹ https://executivebenefits.nfp.com/images/PDFs/boli-holdings-reports/Q2-2020-BOLI-Holdings-Report.pdf

² https://www.wsj.com/articles/SB10001424052748703435104575421411449555240

³ https://caitlin-taylor.medium.com/how-jim-harbaughs-life-insurance-make-him-one-of-the-highest-paid-college-football-coaches-e944e99f96a7

and h/t to Van Mueller