Hi, I’m Byron, Udell. Founder and CEO of a queue quote. Today. I’m going to talk about something the life insurance companies. Don’t want you to know.
In case you didn’t know life insurance companies, make a lot of money in 2014. For instance, the industry made 133 billion dollars. And how do they make all that money? Because most of the time, they win the game of life insurance. What does that mean? Let me explain. Let’s say you buy a permanent life insurance policy at age, 45, with an annual premium of 8,000 dollars. What if 10 years later?
Get divorced or some other major lifestyle change, occurs that prompts you to get rid of that policy. Now, let’s do the math. You paid eight thousand times, ten years. So the insurance company gets to keep eighty thousand dollars of your money and you get nothing profitable for them. I’d say so or let’s say you buy a 20 year Term Policy at age 40 with an annual premium of $892 you Faithfully pay your premiums for the entire 20 years.
Now at age 60, they Jack the premium up to over 20,000 dollars a year. So of course, what do you do? You drop the policy again? They win and you lose after all. They’ve collected nearly 18 thousand dollars from you and they didn’t have to pay out on any claim. You see life insurance is a financial game and like with many things in life.
There are winners and there are losers and you will lose big time every time. If your policy lapses before you die, but you can win every time if you do one thing, right, this is the secret of winning. The game of life insurance. Are you ready? It’s very simple. And here it is six little words. Die with your policy in force.
It’s the people who buy and Then drop their policies prior to dying that subsidize the returns for those who are smart enough to die with their policies in force. Remember the odds that you’re going to die at some point R 1 out of 1. So, I figure you can handle that part. It’s the last five words of the secret that are a little bit trickier. If you want to win the game, you have to die with your policy in force. Let’s look at the math. If you do that.
You buy a 1 million dollar, permanent life, insurance policy at age 55 with premiums of say ten thousand dollars a year. If you live to age 85, you will have made 30 payments of ten thousand dollars, totaling three hundred thousand dollars. When you die, your family gets a guaranteed, 1 million dollars tax-free for a net gain of seven hundred thousand dollars, the numbers. Just don’t lie.
That’s a tax-free. Return of over 7 percent, that’s equivalent to earning well, over 10 percent on any taxable investment may be even more, depending on your tax bracket, or let’s take a woman aged 43 with a 500,000-dollar permanent life policy, paying premiums of 2,500 dollars a year at age 86, 43 years later.
She would have paid a hundred seven thousand five hundred dollars in premiums. If she died that same year at age 86, her family would receive five hundred thousand dollars tax-free. That’s a net gain of three hundred. Ninety two thousand, five hundred dollars. Again a ridiculously high rate of return that simply cannot be matched by any other. Safe, guaranteed predictable Financial instrument. So you might be asking how does this work out for the Life Insurance Company?
Like I said before, it doesn’t at least, not on the people who died with their policies, in force, the insurance companies, make their money on the people who drop their policies before they died. Those folks, subsidize the returns for those smart enough to die with their policies in force. And that’s what the life insurance companies won’t tell you and they don’t want you to know when they win, you lose, when you win, they lose and Since you know you’re going to die, you can guarantee a win.
If you can just find a way to die with your policy in force. It’s not that hard to do. But so many people don’t do it. Obviously, you have to own a policy that you can afford to keep until you die. And it has to be one. That won’t Force you out with higher premiums. When you get older rich people, well, they figured this out a long time ago for years. They’ve always been the ones buying the biggest
Policies, even, folks. So rich, you might be thinking, what do they need life insurance for you? Want to know why? The fact is wealthy, people are usually pretty good at math. They’ve crunched the numbers and they know that life insurance delivers, some of the best returns and is also one of the safest financial instruments you can buy period.
They also believe in diversification every financial advisor does, how can anyone consider? Themselves Diversified. If they don’t own One Financial instrument, that can beat a bond portfolio with you die when you’re supposed to and absolutely crushes. Every other Financial instrument on the planet.
If you die before your time, which happens to people a whole lot more often than so many of the other risks. We routinely build our portfolios to protect against to learn more. Just give us a call for over 30 years. Accu quote has helped hundreds of thousands.
Customers save money and acquire over a hundred billion dollars in life insurance coverage. We work with dozens of the most competitive top-rated, brand name, life, insurance companies that, you know, and trust, and we’d love an opportunity to earn your business. Just call us at the number on your screen, or go to a queue quote.com. I’m Byron Udell and thanks for