What are life insurance retirement plans – What is a life insurance retirement plan? 1-800-566-1002 . What are the best types of life insurance retirement plans and learn how you can avoid the most common mistakes that individuals have made when looking to purchase a life insurance retirement plan. The Facts About Life Insurance Retirement Plans Clearly eliminating personal debt and investing wisely are worthwhile and important financial goals for everyone and should be given the highest priority in any financial recommendations. On the other hand, if you are unable to achieve a debt free lifestyle or realize substantial market returns, you run the risk of losing your insurance protection due to premium increases or becoming ineligible to qualify for coverage when it is needed most. Real World Experience The "Buy Term and Invest the Difference" concept makes sense until you examine it's it closely and compare it with the real world experiences of life insurance buyers. Looking at the experiences, of many policy holders who buy term life protection with the intent to invest their premium savings, we see why this strategy may not be practical for the average consumer. Most consumers are neither experienced nor consistent market investors nor do they have the time and discipline necessary to become successful market players. The results are that most consumers eventually buy term insurance and never invest the difference. Or in other words "Buy Term and Spend the Difference". A 2003 Harris Interactive study found that 77% of more than 1,000 Americans surveyed had bought term insurance as a way to save for long-term financial goals. But only a third of them could identify those goals, and just 14% invested all the money they saved by buying the term policy. By contrast, 17% spent it all. According to 2007 Dalbar Report', investor results over a twenty-year period (1987-2006), showed that the average investor only earned 4.3% during a period where the S&P 500 yielded 11.8%, And, this was during one of the best bull markets on record. And, it doesn't include the 2008 stock market downturn nor does it consider investor fees or expenses paid. Clearly many people are being misled when it comes to actual returns experienced by the average investor. The average investor never realizes higher interest gains on their premium savings and as a result of " BTID" generally find themselves without life insurance coverage because they can no longer afford the higher term premiums or no longer qualify for coverage. Many people are familiar with the concepts of homeownership. In general, most Americans accept the financial principal of homeownership without question. The principal that owning is always better than renting is part of the American cultural legacy. Why because it is about value and not the price. Well this same principal can be applied relatively easily to owning a cash value policy. The example below shows you how closely buying and owning cash value life insurance resembles buying and owning a home: o You pay more up front to purchase a house and to buy Cash Value Life Insurance. o They both build equity over time and free of income taxes. o After a number of years owners usually can get all their money back with a reasonable interest return. o You can access your home equity and policy equity only buy selling or by taking out a loan against them o If you take a loan against them, you can use that money tax-free. o You don't pay income taxes on the value of the house or the CV Life Insurance until you sell them. o Both a home and cash value life insurance are considered financial assets. Advantages of Cash Value Life Insurance versus Term Insurance Benefits of Ownership Cash Value Life Term Life Premiums that never increase over time Yes No Your cash values accumulate tax deferred. Yes No The cash accumulated in your policy can provide you with a tax-free income in retirement. Yes No Creates a liquid 'Emergency Fund' Yes No Considered asset when applying for bank loans Yes No Guarantees - Only Life Insurance and Annuities guarantee your investment principle Yes No Cash values can be accessed income tax-free and penalty free prior to age 59½. Yes No Cash value life insurance is not attachable by creditors. Yes No Cash value life insurance doesn't count as an asset when you apply for college financial aide. Yes No Feel free to subscribe to our YouTube channel and receive instant access on different retirement related topics. Thanks for watching! Related Search terms: life insurance retirement plan annuities life insurance retirement plan income life insurance retirement plan explained life insurance retirement plan reviews life insurance retirement plan review What is the best fixed indexed life insurance retirement plan vs the top immediate income life insurance retirement plan ...(read more)
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