How to build your own life insurance policy or I should say custom life insurance policy
Over the years a lot of times we get questions or individuals will reach out stating
Steve or IBC global I've done some research around high cash value life insurance and I'd like to see the following options
Can you provide it to me?
And my mindset is "yeah absolutely I'd like to show you information because I'd want to see it." I was once in that position
I wanted to see the information so I could better understand it and not have someone tell me
well, you have to talk to me or do
All this research first and doing research -there's nothing wrong with that. It's good
So I'm properly educated, but I wanted to see the information so often we'll get questions
Hey, can I see a customized or an example of a policy several illustrations with different companies?
And my answer is yes, I'd absolutely like to get you the information
We will get you the information but in preparing a policy and putting it together
There are some things that help us very much as far as making sure everything's set up properly
Here we go. The three main things are
How much do I want to pay in, how long and what are my goals? So for example:
Under how much - how much do I want to be able to pay into a policy per year and this really
Should have to do with that word
How much do I want the ability to pay into a policy in any given year we talk about this all the time, right?
Where I might want the ability to pay in 50,000 per year
So it's a hundred thousand dollars per year, but I don't want to get a bill for a hundred thousand dollars per year
So what we can do is design a policy where perhaps I commit to a minimal amount
And then have the ability to add more funds at leisure
so what helps us is if we need to know, how much do you want to pay in you may have
An example or a situation where you say Hey, I want to pay 10k
But I'm expecting a windfall. Things may go very well or every year at the end of the year I get extra money
I'd like to be able to add more does that mean I have to open up a new policy or can I
Enhance my existing one so I might want the ability
To add up to 50k
And really where that helps us, so I want to commit to 10 but have the ability to go up to 50
Is when we design the policy a conversation is always helpful
But not everyone has time for that and you might want to see samples first and I fully respect and understand that
so with that in mind, we'll say okay if
Steve wants the ability to pay up to 50,000, but he only wants to commit to 10
As we show samples with different products different companies. What we're going to do is make sure that we construct the premium
at the proper amount show options, perhaps of a minimum premium
If you said hey I'd like to see a higher split because a lot of times people want to see
show me a 10-90 and also show me at 50-50 or
25-75 whatever it might be let us know. I mean I'm all for showing the options
PUA
We'll know what else to
Allocate toward the PUA. I also am a fan of showing
Hey, what's a policy look like right if I have the ability to go up to 50? I only commit to 5000
What's it look like if I pay in 10k per year?
So I've built in the window room I've equipped the policy to handle 50,000 per year, but I only pay in 10
How does that perform? Because it's not gonna break even on year four or five like a max funded policy will
That's the kind of stuff that helps us up front and it helps you seeing that up
front as opposed to just hearing about it or seeing generic conceptual examples, so
Again, how much where we take this is
Where do we set the premium? How much do we illustrate going into PUAs?
How much death benefit do you want?
Minimums
maximums
Flexibility so minimums and maximums what I mean there is how low can I set the premium with whatever insurance company
How much can I add to PUAs, how flexible is it
Some companies let me throw money into PUAs anytime I want, some don't, some say you've got to go through underwriting first, some require that you
Schedule it properly up front - a lot of details here, a lot of information. These are often topics
we will discuss via phone calls and we've got
Content on it as well. However, these are good items to consider if you're interested in hey
I'm interested in building a policy or seeing certain examples. I want to customize it so it fits my needs
But I'd like to see it before I talk to you or I'm considering moving forward
I'm, you know talking to a number of individuals. Can you show me some options and information?
Yeah, I mean
This is more of a business philosophy
But I look at it this way I want the best option the best price
I want to see everything up front just like these guys would show me if they sold life insurance
cash value life insurance that's custom designed so
Understanding the limits
Right this helps us. So if you say I want the ability to pay in 50,000 per year
I'm going to make sure that the insurance company limit is set up properly
How much can I add in PUAs in respect to my premium?
I'll make sure the MEC limit is set up properly. I should say our office will
If I want to fund for a long period of time, we will typically over inflate the MEC limit
This way we don't trigger a MEC and if we under fund it we'll cut the term rider
There's ways to get the best of all worlds in that respect
I know there's a lot of information out there in that topic, which is interesting when you really break it down
So again the main question around how much is how much do I want the ability?
to pay into a policy on any given year not commit to but have the ability to
And you might say hey, I want to pay in 10 grand per year maxed out my 10 grand
I want to pay in 300k per year max up my 300k if that's the case and you're looking for call it an order taker
I mean, yeah, we'll show you the order
No problem
And then if you want to continue to work with us indefinitely you can. If you say I don't want to talk to anyone
We'll continue to provide you updates
Recordings, things to be aware of right? What we don't want to do is not provide enough information and then
Have someone run into a situation where they trigger MEC
They can't pay as much as they want into it any longer that kind of stuff
So there's ways we provide information on that even if we're not really into talking to people
How long do I want to fund. I get this question a lot
I've got a lump sum of money. Should I pay it in one year, break it up over a couple years
Maybe I want to stop in five years, 10 years, maybe I'm uncertain
Potentially I want to pay in forever, but I just don't know yet
You can equip a policy for any of these. That's the thing
You can customize the funding period, customize the ability to fund for a shorter or longer period of time
A discussion does help here. However,
if we are uncertain, what I like to do first, so
I say hey, I got to talk to you first to be able to figure this out
You say I don't want to talk like I want to see the options first
And I've been in that situation before because you've got 10 million things going on
You're like I don't have time to talk but I'm interested. Can you just show me the options? How I view it is
All right
well
Let's show him the options if he's uncertain show him the same product same company with multiple options
Funding it for five years and then also until age 65 or 10 years or 30 years or forever
This way you can see the pros and cons and if there's differences questions will come up and we'll go through them
But there's nothing wrong with seeing it up front because if I don't see it up front or try and force a conversation first
Not everybody's into that and if you are we'll definitely have a conversation with you
And then we've got goals. This is helpful
especially
If you've got a goal around death benefit and legacy planning, you might say I want to leave
five million dollars to my family or
Two million dollars in a death benefit no matter what happens legacy planning is very important to me. No problem
Cash value maybe I just want to build that up safe liquid
Tax-free go through the tax benefits thoroughly what could potentially trigger a taxable event
So if the goal is to use cash value we're going to make sure
We provide information to you on that whether it's written video content phone calls and we'll constantly do that
Anybody who works with us gets updates
Typically every six months
Loan features. Maybe we want to borrow from the policy use it for income, whatever it might be
We've got shorter videos on this as well. The main thing here is if you're looking to build your own
Customized policy and would like to see examples
What we need to know is how much - how much do I want the ability to pay in?
How much do I want to pay in, how long and then what are some goals?
That's a good starting point and then through conversations and working and seeing additional examples
You'll begin to refine your decision making process
And could select the option that you feel is best for you. Not that we feel is best for everyone
There's a million different ways to design a policy
so
That will help us. I hope this helps and I'll talk to you soon. Enjoy
Hey guys Steve Parisi here
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