A pretty large chunk of my clients save and invest using life insurance. Why? Because I recommend it and they understand the benefits of it. In fact, I deem it as the “sacred account” where one should be saving 40% of their income each month. There are only a few reasons why someone would want to build wealth using life insurance specifically.

Tax avoidance- money that goes into a life insurance policy does participates in the tax system again.
Safety- in a properly structured policy, an investor cannot lose money.
Liquidity- the investor wants to be able to access 70% or more of their funds at any given moment with no hassle, taxes, or penalties.
Leverage- the investor understands fractional reserve banking and desires to take advantage of it for themselves.
Today I want to explain to you how to build wealth using life insurance, so that you can experience these 4 benefits for yourself.

Choose the right company. There are a few things to consider such as financial strength, consumer reports, company history, dividend payouts, mutuality, etc. I’m going to explain the ones that you need to know. First, the company must be mutual. This means it is owned by its policy holders, not shareholders. This allows you as a policy holder to participate in profits of the company via a dividend. Mutual life insurance companies are some of the financial behemoths in the global economy and always have been. Do not settle for a company that doesn’t have top financial ratings and consumer reports. Lastly, I personally will only work with companies that are at least 100 years old. Why? Because I want consistency. Takeaway: Choose a mutual company, with top financial strength, top consumer reports, and that is at least 100 years old.

Choose the right policy. This part is straight forward. You want participating whole life insurance. That is what is considered to be your chassis. This will allow you to earn dividends and guarantee that your cost of insurance does not increase. You want as much money as legally allowable going towards the paid up additions rider on the policy. What this does is max out your growth and liquidity. You also want to have a term insurance rider. This will artificially inflate the face value of the life insurance policy, allowing you to contribute more money without having any tax issues. If you want faster accumulation, you can short the policy pay-in length to as little as 2-7 years, which will inflate the liquidity short term. If you want a steady policy that still accumulates fast, you can do a 10-20 year pay-in period. Lastly, if you want something steady, that performs for the long term you can choose a 65 year pay-in or a life pay-in period. The pay-in periods are going to be based on what you’re trying to accomplish which is where I help you.

Save as much as you can. There are a few qualifiers to determine how much money you can put into your policy. One of them will be benchmarking the 40% rule. The top 1% of wealth have historically saved 40% of their income before taxes. This is our target. If you can do it, great, let’s do it! If you can’t, let’s start with what you can do. It may be 10-20%. Regardless of that, we also need to consider what the insurance company will approve you for. The insurance company itself will look at your finances and determine how much they will let you contribute to your policy at a maximum. Ironically, they like to see a high and steady income, with a healthy balance sheet of assets and liabilities. Aka, the more wealth you are building, the more they’ll allow you to contribute. Once we get their number, we can determine what the right amount is.

Work with the right professional. This is critical. Working with someone who doesn’t align with your wealth creation philosophy will be detrimental to you. At that point, you’re just working with another insurance salesman. You need someone who understands your Wealth Creation Formula, who believes that income producing assets are the key to your financial freedom, and that the life insurance is a tool to help you leverage the account to invest in income producing assets, not as a “nest egg”.

When somebody becomes a client of mine, this is one of the strategies we look at. My goal with my clients is to create income necessity by helping them “go broke” by saving all their money into a sacred account so they must go produce more. My goal is also to help my clients avoid taxation with the life insurance policy. My goal is to teach my clients about fractional reserve banking and how to harness the same concept banks use to take advantage of them with, instead for prosperity. Ultimately, my goal is for my clients to build wealth so that they can eradicate poverty in their own lives and own their potential. Life insurance is simply a tool that helps us get there. Click here if you’d like to schedule a free Wealth Potential Analysis meeting and start this process.

Own Your Potential,

Jerry Fetta

Grant Cardone Certified Coach

Jerry Fetta helps his clients build wealth so that they can eradicate poverty in their own lives and own their potential.

He believes scarcity and abundance cannot co-exist and that the way to end poverty is to help you build wealth.

You were not created to spend 40+ hours per week serving the 40-year-to-life sentence trading your precious time for money just to live in mediocrity.

However, the truth is that time and money must be exchanged. It just doesn’t need to be you making the exchange.

Jerry helps his clients create wealth that exchanges time and money on their behalf. The only way to do this is to make more money, keep it, and then multiply it.

His clients see a 30% increase in income, a guaranteed increase in savings rate, and 8-12% fixed annual returns on their assets in the 1st 90 days of working with him.

To get started, go to www.WealthDynamX.com/potential

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