what is the minimum premium I can have what's the minimum to start with we get this question
frequently and my office which always helps me out has been asked me to put more content on
this for I don't know six to twelve months and we're finally doing it so what is the minimum
that we can pay into a policy so there's two ways to determine this one and this is the way
I'd recommend not to do it is we can price quote and what this means let's say I'm a 40 year old
male and I want a 1 million dollar whole life policy and I also want a quote let's just say
a term life policy the whole life might cost me $15,000 a year and the term might cost me 500 a
year depending on the length of the term so why we have this in red and well state this is the way we
don't do it and don't recommend doing it if we're interested in learning how to maximize the cash
value on a life insurance policy is if we do this we're doing what the life insurance industry does
we're quoting insurance based on her age and we're buying a basic whole life insurance policy where I
get a death benefit first and eventually the cash builds up so remember going back to policy design
where money can go towards premium or PU A's ie cash well in a price quote scenario usually
what the case is is just assuming a 100% based premium which if you want if you've watched any
of our videos or segments on policy design we know that is a great example of what not to do
with the whole life policy because it's going to take me between 10 and 15 years just to break even
not that attractive so that's the first way we can generate the minimum premium and usually people
see that and say okay I'm not doing this it's not for me the second way turn this into a - ÿà is how
do I put this we can set the minimum premium or we can determine it what that means when we design a
policy so this goes again back to policy design where can my money go it can go towards premium
which will refer to as what our insurance expense or can go toward our PUA Rider premium which will
refer to as what cash dumping insurance expense and you'll see where we're going here cash what
are the limits often how much can go towards premium and how much can go towards cash another
way to put it is if I set my premium at $500 a year how much can I pay into that account per
year what's the maximum if I set it up properly and if the company allows it 10x that 5000 a year
now what's critical here make sure the insurance company allows for the 10x limit because not all
do and then also make sure the MEC limit is set appropriately we're gonna look at some examples
of this setting policies up like this in the next several segments the next several videos
point being money can go insurance premium or cash so how does this get to the question what's
the minimum what's the absolute minimum I can pay well we can set it wherever we want there are some
limits if I'm 40 I might be able to get it as low as $500 a year if I'm 65 it's gonna fall between
twelve hundred and eighteen a year assuming I don't have any serious health issues there
are some minimums based off of my age but we can really drive it down the question will often ask
is to really determine the because we can set it wherever you want and if you pay just the minimum
it's not gonna look attractive its price quoting really is what it is in the term in the sense of
how cash value will bill will build up is when it comes to the minimums what's the minimum I can set
in here's how I would back into this this answer or ask one to think over ponder over is how much
do I want the ability this is the key word to add into the policy on any given year another
way to put it is what is my desired or potential maximum why would we ask that well being familiar
with what the company's limits if a company's gonna let me 10x my bit minimum premium and I
said hey things might go well I might want the option to put in thirty thousand dollars on any
given year okay we can set up a policy to do that but if I've got a five hundred dollar base
premium how many companies are going to let me do that especially consistently not many it's beyond
their limits what they will allow and then it's difficult to get a MEK limit that high with a
premium that low as well point being if I have a sense and it can be a ballpark ballpark range as
well I don't want to overshoot it too much but whatever my desired maximum is say it's $15,000
what does that mean where do I want to set my minimum yearly premium going back to the policy
designed 1,500 attack can be paid this depends on the company and their flexibility terms but
that can be paid one time per year or monthly if I wanted to if I want to break that up and really
have a lot of flexibility I can do that if I wanted the ability to pay in a maximum a 5,000 on
any given year well I can set that premium as low as $500 per year and again I can pay that monthly
if desired well so when it comes to the minimum we can usually quote it and we're gonna have
this in some samples of just driving it as low as possible but at the same time designing it where I
can really use the policy where I can continue to add more to it if things go well and not have to
start all over go through the early years right it's heavy on the insurance expenses by setting
it up right building the ability to add more I can design a policy to accommodate that minimum
premium ability to add more that's where I'm not committed to it but I can add more at my leisure
so to answer the question what's the minimum we can almost send it wherever we want does depend
on our age but even if we're in our 60s we can get it between a thousand and two thousand for
the year with the ability to add more for younger we can get kind of five hundred a year no problem