The Cons of Overfunded Life Insurance

In today's Better Wealth Breakdown, I discuss the CONS of over-funding life insurance. When Life Insurance is set-up and used properly it can be an incredible tool. At BetterWealth when we work with people we are completely honest with the CONS that we face with the AND Asset strategy. Listen as I describe 5 CONS to over-funding life insurance: 1.) Health, some people can’t qualify because of health but there are ways around that 2.) Short Term Cash Liquidity 3.)Premium Payments in policies that work need at least 10k a year 4.) Thinking of the Strategy as an Investment 5.) Short Term Protection and Death Benefit.

#BetterWealth

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BetterWealth

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Caleb Guilliams

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[fabrizio]

Amazing transparency, thank you so much!

[nwhite]

Great episode! What’s good to understand the downsides for a full assessment

[TXCTellsAll]

Good points. I appreciate you highlighting the often not talked about story of overfunding

[dm.]

A presentation of TRUTH and INTEGRITY!! Thanks!

[jullioncooper]

I've seen your other videos and appreciate the balanced perspective (the other side) here. In order to avoid "trash policies" from overzealous insurers/brokers ...would you happen to have a checklist or preferred language/minimum percentages (based on industry standards) you could share?

[davidstinnett]

It's hard to go wrong doing the right thing - integrity never goes out of style!

[authenticteecee]

I love this. Talk direct to me daddy! Don’t buffer it 😂❤ thank you Caleb lol

[garrettweldon]

This was very helpful as I am in the process of getting underwritten for one of these policies and I always like knowing perspective of the cons. What do you think about refinancing a traditional mortgage into a 1st lien heloc as a storage place to hold the annual premium payment in the heloc so that you can make one lump premium payment into the "and assest" once a year?

[ricerealtor]

Which state has the highest guarantee amount on a single policy?

[utaw-brge]

If I have 30k saved up to fund initially, what would be a ball park monthly premium payment price?

[dailstancill]

So clear...so true...thx for speaking directly, not salesy..

[johnbunch]

Question if I have 100k to fund the account and keep a 300 month payment. Pull out 35k and leave it alone for 5 to 10 years woul that be good

[thealgorist]

Why do people keep suggesting that those who can't make Whole term, IUL, or VUL work should get term life insurance? How does that increase your cash flow?

[sirmoneytrees]

Excellent! When you are talking about people needing 10k to start, are you thinking that in terms of a starting amount? Or are you going deeper and making sure people have smart savings habits first, emergency funds, etc...?

[ricerealtor]

Is there any limit to the size of an OWL policy?

[johngalt]

Now part 2:
1) if you blow the policy up you owe all the taxes on any gains
2) if you miss payments or vanish premiums there is loan interest due and sometimes they reduce your dividend when loans are taken
3) premiums never stop
4) MEC modified endowment contract guidelines must always be followed
5) Death benefit reduced by loans value
6) If you pledge the policy to secure other loans (like a mortgage or bank loan) there are immediate tax consequences
7) performance is always low and lacking
8) if the policy become jeopardized late in life the large premiums would need to be made defeating the original purpose, intent, and significantly encumber a person financially whether it be tax, less benefit, forfeiture of death benefit by dropping the policy or forced to make premiums again

[justingriffin]

Made it 0.01 seconds into this video before my eardrums ruptured by the screech of your voice 😂. Talk abt cringy presentation