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In this episode, we ask:

• How nerdy can we be?
• What financial asset has increased in value every year for the last 160 years?
• Why, in the early 20th century, did 50% of Americans have their savings in life insurance products?
• Does your financial planner have to use Google to answer your questions?
• What is the Bank On Yourself^® concept?
• How is a Bank On Yourself^® policy constructed?
• What biases do we have toward Whole Life Insurance?
• How is a Bank On Yourself^® design similar to an all base Whole Life design? How is it different?
• What does Bank On Yourself^® Engineering have to do with a sailboat?
• What companies are Bank On Yourself^® friendly?
• How do businesses use Bank On Yourself^®?
• Why does good design matter?
• … More!

The numbers presented here are for example purposes only. Please reach out to us to learn more about what’s possible in your specific situation.

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In this episode, we ask:

• What do you call a … ?
• Are all financial professionals right for your needs?
• How many designations and credentials are available for financial professionals?
• What about the CPA?
• What about the CFA?
• What about enrolled agents?
• What about the CFP®?
• What about Mark’s CFP®?
• What about a generalist designation?
• What about a specialist designation?
• Can anyone call themselves a financial advisor?
• What about life insurance agents?
• Why work with a Bank on Yourself® Professional? 
• Where do you find expert help?
• How many Bank on Yourself® Professionals are there in the U.S. and Canada?
• What about maximizing finances?
• How is the Bank on Yourself® Professional program critical to success?
• What about “just googled it” advisors?
• What about ongoing mentoring?
• What about client relationships?
• Do you really have a Bank on Yourself® type life insurance policy?
• How could you know?
• Why does your advisor matter?

 

What does it take to have a TRUE Bank on Yourself® type life insurance policy?

1. Is whole life insured offered?
2. Is what I have whole life insurance, universal, variable or something else?
3. Is the insurance company mutually owned or stock owned?
4. Is the insurance company’s customer service educated enough to help me with the ins and outs of policy loans (or is it going to be a nightmare every time I try to call customer service)?
5. Does the company have a HIGH COMDEX rating (90+)?
6. If I take a loan, will it affect my policy in the short and long term?
7. If I take a loan, do I have non direct or direct recognition loans?
8. If I take a loan, how will it affect the policy, short-term and long-term?
9. Do I have Non-Direct Recognition loans (which crucially allows my cash value to grow even on the cash value I’ve borrowed against) or Direct Recognition Loans (which stop the growth of my cash when I borrow from the policy)?
10. When will I pay loan interest (at the end of year or immediately?)
11. What are my loan limitations (what they’ll allow me to borrow)?
12. What is my loan interest rate on this policy? (Is it above industry average?)
13. Is the loan simple interest all year long, or is it compounding against me?
14. Does my whole life product pay dividends?
15. Is the dividend based on company performance, with me participating as an owner, or is it merely “interest sensitive”, based on industry competition and pre-formulation?
16. Has the insurance company paid dividends 100 years straight?
17. Are paid-up additions (PUA) offered through premiums or just through dividends?
18. What is the insurance company’s PUA load cost? How does it compare to other whole life products?
19. What are the PUA limits and gotchas? (When and why must we reduce our PUAs even if we don’t want to?)
20. Were any other riders available to help accelerate my cash value growth? (e.g. term rider)
21. If I miss a premium payment, are there any protections? What will happen to the policy guarantees?
22. Was there a Chronic Illness Rider or similar available? What are the fees for this rider?
23. What are the limitations on Chronic Illness/ Long Term Care / Accelerated Death Benefit riders?
24. Was there significant dividend variability (e.g. over the last 12 years) suggesting risk to future cash value growth?
25. Will this policy MEC, and do I want it to lose specific tax advantages?
26. Will both principal and gains be accessible tax-free under current law?
27. What about the agent?
28. Am I having to educate the agent?
29. Is my agent among the 200 Bank on Yourself® professionals in good standing?

 

 

• Do labels matter to you?
• What about your family member who has a life insurance license?
• Would you like Mark to review an inforce policy for FREE?
• Would you like to join our mailing list?
• Would you like a FREE book? Send us a screenshot of your review to hello@nyafinancialpodcast.com, and we’ll send you a book!

 

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In this episode, we ask:

• Does a perfect financial solution exist?
• What do you want your money to do for you?
• Where do you want your money to live?
• What did Mark learn in his research of financial products?
• What are our preconceived notions about money?
• If Katrina was “Pope of Money” for the day, what would she want for her money?
• What are the strengths and limitations of current financial products?
• What are the implications for having a sane financial picture?
• What is a financial structure?
• Where did the Egyptians bury their most treasured leaders, within their architectural wonder, the pyramid?
• …More!

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In this episode, we ask:

• Would you like to leave us a review?
• Do you experience panic moments?
• Have you ever felt panic around a policy loan?
• Have you heard Episode 34?
• How exactly does a policy work?
• Would you like to discuss this with us?
• What happens when you take the first loan out?
• What about buying a new car with a policy loan?
• Do you ever ask, “Did I just make a terrible mistake?”
• Didn’t I pay for the car twice?
• Is taking a policy loan better than paying cash?
• Is the loan payment on top of premium?
• Doesn’t it feel like you’re buying the car all over again?
• Are you the banker and the borrower at the same time?
• Why do bankers add capital to a bank?
• Who comes in the front door of a bank?
• Why do bankers love it when borrowers pay back loans?
• Are banks looking for capital?
• Are you setting up an actual bank?
• How might you recapture the banking function?
• What is a reasonable period of time?
• What is the big idea?
• What might you use as collateral?
• What have you been saving for?
• How does a Home Equity Line of Credit (HELOC) work?
• How do people use HELOCs to finance education (or other life purchase)?
• What are the problems with using a HELOC?
• What are the benefits with a Bank on Yourself type policy?
• What are the problems with 401(k) loans?
• What are the benefits with a Bank on Yourself type policy?
• What does this look like in an example with real numbers?
• When you take a policy loan, where does it come from?
• How does the policy continue to grow, even with policy loans?
• What is a non-direct recognition loan feature?
• Have you heard Episode 83?
• Which companies offer non-direct recognition?
• Does the insurance company charge you interest on a whole life insurance loan?
• Are you able to skip a payment on a life insurance loan repayment?
• Is the loan interest simple or compound interest?
• Could the policy lapse if you take a very large policy loan?
• How can you manage the policy in a healthy way?
• What happens when you take money from a savings account?
• Is there an opportunity cost with a policy loan?
• When do you have to pay the policy loan off?
• Do you interrupt the growth of your money when you borrow it?
• Am I saving enough to have the money to make the purchase I want?
• How will I make the purchase? Will I pay cash? Will I go into debt? Will I take a policy loan?
• Have you heard Episode 54 yet?
• Have you heard Episode 71 yet?
• Isn’t this twice as nice?

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In this episode, we ask:

• What is a life insurance policy loan?
• If I’m trying to be debt free, why go back into debt with an insurance company?
• Are life insurance loans just like a credit card or a mortgage?
• Isn’t a life insurance loan just like a personal loan?
• How does your cash value collateral continuing growing, even when you have a policy loan outstanding?
• How is this different from a HELOC?
• Is your house guaranteed to go up in value?
• What about contractual guarantees with a life insurance policy loan?
• What are the limits with a life insurance policy loan?
• Could the loans lapse the policy?
• What is the best kind of investment to a life insurance company?
• Can you be “underwater” in your life insurance policy loan?
• What are the requirements for this type of life insurance policy to work in a Bank on Yourself design?
  • Is it whole life insurance?
  • Is it a non-direct recognition loan?
  • Is it flexible, so you keep it for your entire life?
  • Are you repaying your loans?
  • Are you working with a knowledgeable, authorized advisor?
• Do you have trauma from a previous bad experience?
• Why do so many advisors not know how to design these properly?
• Does your existing whole life insurance policy penalize you when you take policy loans?
• Does your advisor know what they’re doing? Do they frantically google in front of you?
• Why did the Titanic sink?
• Do you know an advisor who has a skillful knowledge of Life Insurance contracts?
• Of what red flags should you be aware?
• With non-direct recognition policy loan, how is the dividend credited on a whole life policy?
• If you don’t have a non-direct recognition policy loan, what happens?
• When you take a policy loan, where does the money come from?
  • See The Bank On Yourself Revolution by Pamela Yellen, page 256
• What is the collateral for that loan?
• When do life insurance companies get a profit?
• How do you benefit from the interest you paid on the loan?
• If the insurance company’s yield is better than their worst case scenario, what happens to your dividends?
• Who’s allergic to paying interest?
• What are some financing strategies when buying a car?
• What interest does an insurance company charge on the loan?
• Who are the owners of the insurance company?
• Do you love that you are charged loan interest?
• What is simple interest, compounded annually in arrears?
• When is 5% not always 5%?
• Why would you willingly pay extra for something?
• What type of interest would you like on a savings account? Simple? Compound?
• How can you calculate the growth you receive?
• Is the method of banking on yourself better or worse than paying cash for things?
• Don’t you wish more people knew about this?
• How can you make a profit on buying a car?
• How can you use a life insurance policy with non-direct recognition policy loans for income in retirement?
• What’s the problem with the direct recognition policy loan design for income in retirement?
• What design features have a tremendous amount of impact on how long money will last in retirement?
• How do banks use money in more ways than one (at the same time)?
• What does the fine print in your contract say?
• “Ignore what banks tell you to do with money, and instead, watch what they do with their own money.” – John McCarthy
• How much money do banks keep in life insurance contracts?
• What’s a tier 1 asset?
• How can you change your family tree?

 

 

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In this episode, we ask:

• What about Silly Putty?
• What about accidental inventions?
• What about the wheel?
• What about the axle?
• What about the power of leverage?
• What about access?
• What about cash value?
• What about a contract?
• What about Bank on Yourself® type whole life insurance contracts? 
• What about Episode 195 and Episode 196?
• How can whole life insurance grow guaranteed?
• How long might you live?
• What affects guaranteed growth?
• What about traditional whole life insurance?
• What about the guaranteed death benefits at mortality?
• What about financial certainty?
• What about greater flexibility?
• What is powerful and often overlooked?
• What about the average ways of looking at finances?
• What about “mythical financial vehicles”?
• Are you guaranteed to lose money if you buy whole life insurance?
• What happens in year 1 of a permanent whole life insurance policy?
• What about some context?
• What about whole life insurance compared to ETFs or bond fund?
• Is there a guaranteed ledger in the stock market? (NO!)
• What about the guaranteed LOSS for the stock market investor?
• What about the objections?
• What about the dividends?
• What about timing?
• Does timing matter?
• What about fluctuating markets?
• What about risk?
• What about success in retirement?
• What three things does whole life insurance provide?
• What about guaranteed income that cannot be outlived?
• What about access to mortality credits?
• How are mortality credits like the axle?
• How might insurance companies make a profit?
• What are mortality tables?
• What about hedging risk?
• What about Paid Up Additions riders or PUAs?
• Would you like to hear Episode 142?
• What about leverage?
• What about pennies that buy dollars?
• What about volatility?
• What about little or no volatility?
• How might you dramatically reduce your risk?
• What about the barbell?
• When is the greatest time to have cash value whole life insurance and annuities in your portfolio?
• What about getting greater yield?
• What about examples?
• What about CDs?
• What about annuities?
• What about death benefits?
• What about super low interest rate environments?
• What about privacy?
• What about going through probate (or not)?
• What about beneficiaries?
• What about creditor and predator protection?
• What about the power of the axle?
• Would you like to listen to Sarry’s podcast as well?