so 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 asking you 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 cases is just assuming a 100% based premium which of you what 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 ten and fifteen 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 dump in 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 five thousand
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 five hundred dollars a year if I'm sixty
five 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 minimum because we can set it wherever you want
and if you pay just the minimum it's not gonna look at R active its price quoting really is is in
the term in the sense of how cash value will built 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 is 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 MEC 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 1500 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 5000 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 as well so when it comes to the minimum we can easily quote it and we're going to have
this in some samples of two 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 the age of the question what's the minimum we can almost set 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 if we're younger we can get kind of five hundred a year no problem