We get this question/objection a lot. This comes from a fundamental misunderstanding of Whole Life insurance as a product. Many of our listeners may understand this already, but for those who don't, we'd like to explain to you the relationship between cash value and death benefit.

 

"Suspend the list of the many benefits of whole life insurance over and above those of real estate for a moment. Now, as you make premium payments and mortgage payments, respectively, you are building ever-increasing “cash value” and ‘home equity’, respectively. Upon death or the attained policy completion age (i.e. 121 years old), the insurance company pays the beneficiary (ies) the full “face value” or full market value of the life insurance policy. Similarly, if the homeowner sells the RE property, they receive the current market value- in other words, what the market will bear. The home equity portion that was available is built into the home’s sale price. Similarly, upon the payout of the insurance benefit, the insurance cash value (like the home equity) is built into the full face value. They are part and parcel to the whole in both examples.” John Fox Ward

 

Connect with Doug MacKenze:

Website: Control Capital Solutions

Email: [email protected]

 

Connect with john Fox Ward:

Website: Nash Cashflow - The Nash CashFlow Group

Email: [email protected]