It's not just for death benefit. In this episode, I'm going to address the question.
Why do wealthy people buy so much life insurance? Well and maybe
they know something that you don't know. But you can't be aware of something you're not aware of.
So, in this episode, I'm gonna blow you away and enlighten you
with the concepts of why the wealthy people buy more and more life insurance the older they get.
So my name's Doug Andrew and I've been helping people optimize their financial assets now
for more than 48 years. In doing so, many times people would come to me as a retirement planning
specialist and they want to know where the best place to put their money their serious cash
to be able to not only accumulate at the best internal rate of return taking into consideration
taxes, inflation, market volatility, and so forth. But also to be able to generate income that they would
not outlive in retirement. The savvy ones would understand that the three biggest dangers that
would cause most retirees to outlive their money taxes, inflation, and market volatility. So I would
make them immune from those three dangers. I would eliminate them from their portfolios
and it's amazing how many financial advisors still do not know how to do this. Unfortunately, a lot of
financial planners try to charge up a retirement battery so to speak that hopefully won't go dead
before you do. The problem is there are three big things that short out that retirement battery
the IRAs and 401ks and money in the market so forth it's taxes, inflation, and market volatility.
So, what I have loved doing is giving people very powerful generators so to speak that will generate
tax-free income into perpetuity that is totally immune from taxes inflation and market volatility
and the instrument that accomplishes this the best is a max funded indexed universal life insurance
contract that's structured correctly and funded properly and if it is it qualifies to be called
what I named a laser fund. Which is actually the title of one of my best-selling books that I want
to gift you free at the end of this episode. So stay with me here. People will usually come up
at my events and they'll go, "Doug, you showed some examples on the screen in the last session", because
I teach sometimes two and three-day events and you showed examples of Walt Disney and
JCPenney and Ray Kroc who started McDonald's. David Walker the comptroller that was under
the Bush administration up until the Obama administration when he resigned
because he got frustrated. He couldn't tell the public the truth of how close we were
to a total financial collapse in 2008 and they are all big proponents of owning a ton
of permanent life insurance and people go, "Why did they need life insurance? They had the money."
Well, actually there was a point in all of their careers where they didn't have the money
and money inside of their insurance contracts was their saving grace. In other words,
JCPenney bailed out JCPenney and kept it alive when it was in trouble financially
by accessing money the smart way borrowing it out of his insurance contracts. Do you know that Ray
Kroc did the same thing to keep McDonald's alive? We wouldn't have McDonald's today
if it wasn't for his life insurance policies that gave him liquid access to cash tax-free.
Same thing with Walt Disney. Now the neat thing about Disney is he actually went broke about
seven times and had a nervous breakdown before he finally made it and what's so ironic about
Disney is he actually came up with an idea that he shared with his brother I won't tell you his
name and he said, "Hey, I've got this idea. I've always been afraid of mice and I want to make
a cartoon that depicts a mouse that is friendly", and his brother said, "Walt, that idea will never fly",
yeah, well it was steamboat Willie which turned into mickey mouse. Mickey mouse has been the
number one entertainer in America for over 70 years and his brother Roy a lot of people don't
even know Roy but we know Walt because of mickey mouse a recession-proof mouse. Walt Disney when he
was ready to throw in the towel he was out of all resources he used his life insurance policy to
save and come up with the idea of disneyland and everything that we enjoy today with disney and
all of his creativity. Same thing with David Walker in 2008 when the market dropped 40% for the second
time in a decade he went around the country after he resigned from being the comptroller general at
the general accountability office and he he told people the safest place the wisest place to have
serious cash to protect yourself from market volatility is in max funded indexed universal
life insurance contracts. Now, what do they know that maybe you don't know. That insurance
is really there more for living benefits than just the death benefit. A lot of people think insurance
is just there to protect you in the event of a premature or untimely death so that if you die
and you don't stay around like you would hope to for your children grandchildren your spouse
that they'll have the wherewithal to be able to continue on in life with dignity and so forth.
Yes, I've had a lot of clients who have passed away and this was a blessing to those they left behind.
But most of my clients never came to me wanting or even needing life insurance for the death benefit.
They had the money. See, a lot of buy term invest the difference proponents say,
"Oh, you buy term invest the difference and after 30 years you'll have the money. Now you can let
go of the term insurance", well then why are so many wealthy people buying so much life
insurance when they're in their 60s 70s and 80s. I'll share the answer next. Before I share this
with you. If this is intriguing you and you can think of somebody who ought to watch this episode
be sure and share, post a comment, click like . But I want you to subscribe to this channel three
dimensional wealth it's free. If you click the bell you'll be notified every time I post a new video.
These are educational videos designed to enlighten you and show you opportunities that maybe you
didn't know existed before and I post one almost on a daily basis and i usually then will provide
an opportunity to get a copy of a book that will help you understand the concepts that I teach in
the videos and that's what I'm going to do at the end of this episode. I want to gift you a free copy
of my most recent 300 page best-selling book the laser fund. So, please subscribe and share. These
savvy people they are using life insurance for the living benefits this was actually the brainchild
of EF Hutton. They were a brokerage firm back in 1980, they weren't an insurance company. They
realized that the multi-trillion dollar insurance industry is not only the backbone of America
but the backbone of the world. This is where governments go to for help. Do you know that
just one insurance company where I have some of my money manages as much money as the IRS collects in
taxes in an entire year about three and a half trillion? One company. So, they are money managers
and this is where many banks and credit unions will take money that you deposit into them
and they pay you a measly one percent and they turn around and put thirty to forty
percent of their tier one assets into these insurance companies and earn five.
How much more is five than one? Don't say four it's five times. Every million they borrow from
us when we put money in a bank it's in a lended position they pay ten thousand in interest and
they turn around and make 50,000. 50,000 is 500 percent more than
10,000. They do this to increase the safety and the liquidity and the rate of return by five times.
You can bypass the middleman. So, the answer to why do wealthy people put their money in
insurance or buy insurance when they're in their 50s 60s 70s and 80s. Yeah, it's because they
understand where else can they accumulate their money tax-free. This has been grandfathered in the
internal revenue code for over a century section 72e allows your money to accumulate tax-free
inside the insurance policies. You're taking the least amount of insurance the IRS will let you
get away with and put in the most money the IRS allows it turns into this tax-free cash cow.
But what if you need to access money? If you put in a million or 10 million we have people putting in
10 million a year. We had a woman years ago who put in 200,000 she said, "I'll never touch this for 20
years", two months later she was in this horrible accident she called me and said, "Doug, I need
120,000 of that 200 000", she called back two days later and I said, "Beverly, I had it overnighted have
you checked your mail?", she went, "Oh, it's here", it's liquid. You can access the money you want the
liquidity but she didn't have to pay tax on that. She could access it there's no ten percent penalty.
They want the liquidity. Number two they want the safety of their money the last domino that would
fall if we had a total financial collapse in this country. That's why David Walker said this is where
I have my serious cash. It's the last industry the insurance industry that would fall the banks would
be failing first. You'd have lots of warning to get your money out. But frankly, if it was that bad the
American dollar would probably be worthless. So, you better be able to grow carrots in your backyard
if that happens. But the point is this, you want to have money that's liquid and safe and then earning
predictable rates of return. They know they don't need pie in the sky rates of return. Some
they're gonna earn 25 and even 60. Like many did this year the recording of this
video in 2021. But on the average, if you earn 10 tax-free your money doubles every 7.2 years.
So that's why Disney and JCPenney and Ray Kroc and David Walker and many savvy people
will buy the insurance for the living benefits. But let me just simplify it. If I reposition
a million dollars and I put it over into a portfolio of laser funds max funded index
universal life insurance contracts. If I need to access that million I can anytime I need to.
It's growing tax-free. It's very liquid, it's safe, it earns predictable rates of return. It'll double
to two million and then a four million and eight million every probably seven and a half years
based on actual history. Why would I earn this rate of return in a volatile stock market when
I can earn double that or triple that. Why would I generate on every million dollars
40,000 of income when I could generate 80 to 100,000? Why would I generate this when I could
generate this and at the end of the day when you pass away why would you leave behind this cash
in a mutual fund or an IRA 401k when you could leave behind this double or triple that tax-free.
Why would you generate this when you generate this the rest of your life and why when you finally die
would you leave behind this when you can leave behind this. If it doesn't cost you anything
most people go, "Well, nothing's free", no. But I don't pay for it it's being paid for with a minuscule
portion of money that would otherwise go out the window an unnecessary tax if I followed
the herd and put my money in the market in traditional IRAs and 401ks. If you're intrigued
let me show you how you can learn more. I would strongly recommend you claim your free copy of
this 300-page book it's called the laser fund how to diversify and create the foundation for a
tax-free retirement. It's actually two books in one this one the white covered side is about 200 pages
with all the charts and graphs and explanations 14 chapters. If you learn more by stories and
examples you flip it over you read this one 100 pages 12 chapters with 62 chicken soup for the
financial soul stories. If you want to use both the right brain and left brain read both.
But folks, simply go to laserfund.com. Click on the link below.
You contribute a nominal amount towards the shipping and handling, I'll cover the rest of that.
I'll pay for the book fire it out to you. There's options there to listen and learn and watch and
learn. But once you begin to understand this you'll want to reposition your money where savvy wealthy
people put their money for liquidity safety predictable rates of return and totally tax-free.