Fusion Strategies’ Post

#lifeinsurance is often seen as a #FinancialSafetyNet for your loved ones after you #passaway. But what if you’re dealing with #FinancialChallenges while you’re still alive? You may wonder if you can tap into your life insurance policy to #payoffdebt. The answer depends on the type of life insurance you have and your financial situation. Let’s explore the possibilities... https://lnkd.in/gwrMGp5X

Did you know you can use your life insurance policy to pay off debt? With a cash-value life insurance policy, you can tackle high-interest loans instead of letting them dominate your cash flow, all without sacrificing your long-term goals. Here’s how: - Build up the cash value in your policy. - Take out a policy loan– this is usually a quick and simple process, with significantly lower rates than you could get at a bank. - Use the loan to pay off any debts. - Redirect the cash that was formerly allocated to the debt to repay your policy loan. Essentially, you’re taking out a low-interest loan with zero tax implications to pay off high-interest debt. If that didn’t sound appealing enough, the cash component of a cash-value life insurance policy continues to compound even while you borrow against it. It’s important to note how much careful planning is needed to ensure the success of this strategy. We’re here to help you through all of it. Take back your financial strategy and learn how legacy banking can free up your future! Check out the full blog in the comments below. 👇

This is a beautifully simplistic explanation of Infinite Banking. Well said Jack!

🔴 Can I purchase a home with my life insurance policy's cash value? 🔴 Yes you can. You may have access to policy cash value through either a withdrawal or as a loan from the insurance company using the policy as collateral. If you take a withdrawal, your policy values will immediately be reduced by the withdrawal amount. If you take a loan, depending upon the type of insurance you have, your policy values may continue to grow. You are not required to repay the loan, or the loan interest, during your lifetime. However, if you choose not to, any outstanding loan balance will reduce the amount of death benefit payable to your beneficiary.

How does infinite banking actually work? All you’re doing is replacing your savings account with the cash value of a life insurance policy Why? Because when you save up, spend (or invest) and then replenish your dollars in the bank You lose out on all the future interest your original savings could have earned Infinite banking involves overfunding a whole life insurance policy with unique riders And then taking policy loans against your continuously compounding cash value And that’s the key right there ^ Recovering the lost opportunity cost from using YOUR dollars your whole life Because you instead use the life insurance carrier’s dollars, while your $ continues growing Bonus points for using policy loans to fund investments That’s when this strategy takes off See below for a helpful visual Source: BankingTruths.com

Question: Have you ever thought of using your life insurance policy as a way to get out of credit card debt? It may sound far-fetched, but it's actually possible! If you have a whole life policy, and you've been making payments on it for a while, you may have enough 'cash value' in the policy to cover your credit card debt. Let's say you have $15,000 in credit card debt and can't qualify for a debt management program or a loan from a bank. If you have a $100,000 life insurance policy with a $20,000 cash value, you could borrow a portion of that and pay off your credit card debt - and you don't even have to pay yourself back! That's right - you only have to pay the interest on the loan each year, not the principle. Of course, there are conditions that must be met in order to use this form of debt consolidation, but it is possible. If you have more questions on this topic, feel free to reach out and I'd be happy to give you some insight and answer any questions you may have. #lifeinsurance #debtconsolidation #lifeinsurance #financialliteracy

Checking in! Restructuring your finances! Whole life insurance can be risky if not managed properly. If a policyholder forgets about the policy, it might automatically take out loans against its cash value to cover unpaid premiums. These loans accumulate interest over time. If left unchecked, the growing loan balance and interest can eat up the policy’s cash value, eventually causing the policy to lapse. This means the coverage ends, and the policyholder might face unexpected debt or taxes. Because of this complexity, some people avoid whole life insurance to prevent potential financial headaches.

10 reasons why you dont need life insurance ? You don't need life insurance if you... 1. Have a ton of money all the time 2. Are young,single and have no significant debts that would burden others. 3. Don't have any financial obligations when you pass on 4. Aren't planning on leaving any Inheritance for your children 5. Plan on passing the financial burden of retirement to your children 6. Are already providing for your beneficiaries in other ways like investment accounts or land banking 7. Have no business partners or co-signers on loans, who would be financially impacted by your death 8. Have invested your money in other financial instruments that offer potential returns during your life time, like a unit trust or mutual fund 9. You have already accumulated enough wealth to self insure and provide for any dependents 10.Do not have a mortgage Save Invest Protect

Have you ever thought of using your life insurance policy as a way to get out of credit card debt? It may sound far-fetched, but it's actually possible! If you have a whole life or universal life policy, and you've been making payments on it for a while, you may have enough 'cash value' in the policy to cover your credit card debt. Let's say you have $15,000 in credit card debt and can't qualify for a debt management program or a loan from a bank. If you have a $100,000 life insurance policy with a $20,000 cash value, you could borrow a portion of that and pay off your credit card debt - and you don't even have to pay yourself back! That's right - you only have to pay the interest on the loan each year, not the principal. Of course, there are conditions that must be met in order to use this form of debt consolidation, but it is possible. If you have more questions on this topic, feel free to reach out and I'd be happy to give you some insight and answer any questions you may have. #lifeinsurance #debtconsolidation #lifeinsurance #financialliteracy

➡ Want to see the astounding hidden opportunity in top-tier whole life insurance? Some mutual life insurance carriers rewrote their whole life contracts in 2021. Some of these policy contracts have guaranteed policy loan rates of 5% - FOR LIFE. One carrier has their guaranteed policy loan rate starting at 5%, then decreasing to 3.5% after a period of time. 3.5%. Guaranteed in the contract. The arrow on the chart points to 2021 - the period of time when some new whole life contracts came to market. (Keep in mind - bond prices on the chart falling = interest rates rising). You can still buy these policies TODAY with the guaranteed policy loan rates from 2021. (However, some carriers WILL NOT offer this. Some carriers offer variable-only loan rates.) ➡ Buying dividend paying whole life insurance from a mutual carrier with a 5% fixed policy loan rate for life is literally like owning a permanent short position from the arrow WITH the hedge that if rates go back to ZERO, you can take your policy to a bank at that time and they will likely lend money to you secured by your cash value at the prevailing rates at that time. So...if rates keep going up...you have a locked in line of credit at 5%, then 3.5%. If rates trend lower over time, you can use your policy as collateral at a bank and have them lend to you at what could be lower than 5%. THIS is the hidden opportunity to own top-tier whole life insurance NOW. Any questions? #lifeinsurance #bonds #interestrates #considerthis #wholelife