Traditionally everyone will aim to pay off their house in 30 years, the CYA process in that same period of time will show you how the insurance policy will pay you an income for the rest of your life, you will see on average of 4 years that every single payment that you made to the bank was received from the insurance policy.
While the equity is in the house the money is not earning a rate of return, while the money is in the insurance policy, it can earn compound interest and since this is a long term solution, we repeat this cycle to transplant the equity for the house and in bank’s control to the insurance policy which is in your control.
To get a little more in depth understanding on the type of cash value insurance we are using here’s a full understanding.
Warning….Many Financial Experts frown on using cash value life insurance Suze Orman, Dave Ramsey, countless others…..
Question we have for all these so “Experts” if your advice is so great, then why are we in a retirement crisis? We do not believe we will get too much fanfare by Wall Street people (Securities licensed individuals)
Why is that? First let’s go thru a little history first in 1980 when 401k first went into effect only 13% of Americans owned stock in 1998 over half the country had these stocks….over 2 Trillion dollars’ worth. The Government incentivized its citizens thru tax breaks to invest in the market and the people who sold these plans carried securities licenses.
Here is the full Article ,If the general public knew that over a 20-30 year period cash value life insurance has the ability to create a lifelong income then it could create some competition. We believe Wall Street has a place in an investment portfolio but it cannot create a lifelong income stream you have to explore other areas.