Welcome back friend. Kris Krohn here and today, I want to talk about kind of an
interesting question. Can you become your own bank? Now, I know that's gotta sound a
little bit weird but today we're actually talking about the merits of
whole life insurance. And a lot of people think, "Oh, yeah. I don't know if I want to
watch that video. That's all about investing in your death." But I think
today, you're going to find that there's a ton of benefits in life. I call them
living benefits that you actually get. And for those of you that are part of
this channel because you're an investor or invest in real estate or you're
trying to manifest the life that you want financially, I think you're about to
become wildly surprised at a tool that many of the elite and wealthy leverage
that most other people don't even know about.
Okay, joining me back today is Rob Gill in the house to help me have this
conversation because we're talking about leveraging life insurance in a very, very
different way. I think most people typically think, "Oh, life insurance or a
whole life insurance policy is all about well you put money in this thing and
then you know, then you die and then your family gets a benefit." And you know, that
sounds a whole lot like term insurance. But there's actually a specific type of
whole life policy. Not in general. But there's a specific type of whole life
policy, Rob that has all sorts of additional benefits and living benefits
that I think business owners and real estate investors and anyone that wants
to become more financially savvy needs to know about. So check this out. Benefits.
First of all, what is what is the whole life insurance policy? -It's a
contract between yourself and insurance company. Typically we have 2
mutual life insurance companies because we want to make sure as our cash value
grows, the money you put into the policy where you get a guarantee rate of return
of 4% by state law and by contract. Plus a non guaranteed dividend. So we want to
make sure that as your money is growing in there when you decide to utilize it
for other opportunities. You could borrow from your policy. Go buy let's say a
piece of real estate and your cash value is still going to earn the rate of
return. -Okay, pause. I think this just went over some people's head. I want to make
sure you actually heard and understand what Rob's actually talking about here.
This is a type of life insurance policy that when you're putting money into it
every month, there's a portion that goes to your death benefit. So if you die,
family gets inheritance money. -Absolutely. But there's also a portion of it that is
actually a living benefit that builds up kind of like a bank account. And you're
saying that there's a way to pull that out and use it for investing or living
or building a business or whatever person chooses? -Yes.
Absolutely. So, if you just funded a policy from age 30 to 65 and retired, you
can use that as a retirement supplement. However along the way, what Chris is
discussing is using the cash value. Once again, after you do all your homework, you
dies across a tease. For alternative investment strategies. So, while you're
planning for retirement and now becomes a Swiss Army knife because now you could
use the the money for other investment opportunities. And now, the same dollar if
properly designed can be earning to rates of return
for the same dollar while having protected. -Pause. Time out. Okay. So, this is
really important because I'm going to have you write down if you're following along.
There's a couple of key things that are so important. And you need to understand
that not every whole life insurance policy does this. There's a link in the
description below if you want to talk to the team that can actually expose you to
those type of whole life insurance policies. The bottom line is it can often
be one of the best tools to actually give you that versatility, that Swiss
Army knife. So, first of all, you just said when you put your money into it, you're
mentioning that there's a guaranteed dividend rate... -No, no. Let me correct that.
If you don't mind. You have a guarantee rate of return. -So, you have a
guaranteed rate of return and separate from that a non guaranteed dividend. -Okay,
so there can be dividends? -Yeah. -So, in other words, you're
actually making... You're actually making money on your money being in there?
-Absolutely. -I got to tell you. -Over the life of the country. -But my money in a
bank, they're going to pay me maybe like half a percent or a quarter percent or a
tenth of a percent. -And you'll get taxed on too. -And then how's this different?
-Well, because this it's an insurance contract. So, this goes back to when
taxes were created in 1913. Because the insurance industry was around since we
were coming over from England. And when people got on boats coming over from
England, they had life insurance on the boat. So, that's when the insurance
industry was created. If we want to get... -Bit of the history lesson.
-Absolutely. -If you want to get deep, it's they have more people in Congress right
now than got a shield in this product as of today okay. I could always change
from being invaded from the confiscatory nor nature of taxes from
the U.S. -Okay. So, there's a couple of things we're about to stack up but just
to be clear you had mentioned like a 4%... -Guarantee by state law and
by contract. -There's a 4%. And then on top of that, there's a dividend.
-Yes. -That already outweighs what you could get out of a like a basic savings
account. Then it's tax-free as like as like a second bonus. -So, when it comes to
the tax side of it, once you start taking distributions, it's tax free up the basis.
And then to maintain that tax-free status, this is simple mechanics. You
would borrow from the policy to maintain that tax-free status. Then I actually can
grow it tax-free with those limitations that you shared. -Yep. And then as a kicker,
I can actually keep and maintain the policy. But pull certain amounts out...
-You can. -That I can then use for... I could buy an investment property with it.
=And have the rental head back. -Okay. I'm loving that. And that's what you're
meaning by having your money sitting in more than one place at once? -So, let's
play with this a little. -Okay. -Right now conceptual, everybody. This is conceptual.
-This goes over your head, you got to watch this again or in the least, you got to
actually we're talking about how you actually set yourselves up for more
success. I've been engaging with these particular types of policies now for the
last 12 years. And they have helped me invest in real estate substantially and
do a number of things. So, I really love that the conversation that we're having
so much so that even though I've only found a handful of people over the last
decade that I trust to put the proper policy in place, if you click the link
below and get in contact with the team there, you're actually going to
learn about those policies, how to leverage them and they could end up
being one of the most perfect tools to sync up with your investment strategy in
the future or your plan. So, you make sure you that you do that. But yes, let's go
deeper play. So, hypothetically speaking... And this is just an hypothetical. So
double check everything. But if you were to buy a piece of real estate, the goal
is to get 4 rates of return. Cash flow, mortgage interest write-off,
depreciate the asset on your tax return. Right? So, let's just say against your
regular income. -Yes. -And eventually over time, historically speaking, it should
appreciate in value. -Yes. -4 spends. Now, right? -Okay. -So, as you're building up cash
value and you want to now use that money so you would borrow from the insurance
company. We don't know what that rate is that's another conversation. We
could talk about. So, you borrow from the insurance company. You buy the real
estate. You then have the rent or pay back the policy. So you're still getting
those 4 rates of return inside the real estate. But now you're still picking
up the dividends and interest inside the life insurance. But there's one more
thing. You're now becoming a bank in the sense that you paying yourself interest.
-Wow! Dude, okay. Listen, you heard it here. That's why we put it here. That's
that mic drop. Kaboom! Dude, thank you so much for sharing that Rob. That was just...
That was money literally. actually could be in your pocket money. And guys, this
whole idea of the benefits of perching whole life insurance.
Hopefully that over delivered on. "Oh, my gosh. I had no idea that all those
different possibilities in benefits actually could all breakdown happen all
at once. And that's why I've been leveraging this teamed up with real
estate as a part of my more sophisticated real estate plan." And so
man thank you for being here. And if I could add one thing. You're always
talking the importance of long-term. This isn't something that happens overnight,
right? This is always a long-term part of a conservative overall planning strategy.
-Yeah. -Just that throw that out there. So you know, I make sure everyone's on the
same page. -Excellent. Well, listen. Rob, thank you guys so much for joining today
dude. Appreciate it. and for those of you that are watching, if you're like, "Wow, I
wonder if that's for me. I wonder if I should learn more about that. I wonder, I
wonder, I wonder." If you got questions, click that link below. Get with the team
and then learn what that might look like for you. In the end, I think that you're
probably going to be thanking me and so happy to generate this value today. Also
friends make sure that you do subscribe, ring that bell and then tomorrow I got a
brand new video coming your way.