That private placement life insurance, I’m not sure. If you misheard us saying we do private placement investments, I’m not familiar with the term private placement life insurance. I know what he’s talking about. So I actually put this in the mastermind discord channel last night.

So what they’re talking about is. It’s I dunno. I It’s advance for the most part, but what I would do is I would recommend doing research on what’s client. I let, if you’re interested in this type of stuff, it falls more into the IUL, type of facility. But if people want to, this is This is Biden.

Guys are trying to like close this loop hole where you’re able to pass off your estate tax free by just passing in a mouth. Now, before they close this poll, for people under $5 million net worth is Bobbie. You’re going to pay too much money to make this make sense. I would tell Justin, don’t worry about it, man. Get your net worth five to $10 million and worry about that stuff.

But I’ll take, I’ll put an article we’re interested here very well. Yeah. I think we’ve covered the whole life or IUL, index feature for guardian. There’s a question. Yeah, hold on. What does it take to access the money? Yeah, two to three business days via ACH. That’s if you go through the online portal that there are some companies that don’t have online, and you may have to either fax or fill out a call, call the agent.

Most companies, we used to have that online portal.

The death cash value in life, if you can. So a question as far as qualifying for an accredited investor, if you can use the cash value in your life insurance policy to qualify for that that is if you choose to disclose that it would be just like unlike a bank account where, they can pull a credit report and they can maybe see what you have.

These are really private. So you would have to disclose it to whoever is qualifying you. I have in the past when I went through investor or verify investor.com I just had to take a screenshot of the portal to show what the cash value and they use that.

That’s that’s thorough for them, right? You get like these verification things. I’ve seen it go so many different ways. , when I co-sign on, 20, $50 million deals, a lot of times I’ll just take a screenshot of my cash or the PDF, and I send it over as part of proof. Yeah. I think that the more sophisticated the person you’re sending it to the better they’ll understand what the heck it is.

But if you go to your average bank, I think you’re going to just going to end up with some bureaucratic idiot that doesn’t know what the accurate book doing. So that said you may be tricky to use it as cash reserves on a home purchase. But then if that’s the case, just tell that bureaucratic guy.

I’m just going to do a cash deposit into my bank account tomorrow. You’ll see it there, buddy. You can look it up,

Of question. Can you carry a term life and whole life policy at the same time? Yes. The only thing is that’s benefit does go into the equations. So it’s the, you have a overall total limit of death benefit, that, insurance companies will insure you for. So it does affect that, but you can carry and both, a lot of people do have both

take these questions as we go. This is, I think this is good to reiterate. Why not buy term and invest the difference. And this is the sentiment that the Dave Ramsey guys always say. And I would agree with this, right? If you, if your forgot what is your goal, that’s why you do the consults, right?

What is your goal? What are you trying to do here? Most of you guys are the same. You guys want to take your money and put it into a policy so you can take it out. Cash value, policy loan to go invest it. But if your goal is I want a million, $2 million of death payout in case something happens from my family.

To me, the solution and tool for that is a term life policy, but it just so happens if you fund something for $50,000 for six years, you’re going to get that by-product two at the same time.

A question about the guaranteed dividend changing at the end of the year. So that’s that 77 0 2 tax change. As far as, by how much that a very company guardian has come out with most of their products, they’ve stated that there is one will be, is 3%. Other companies have come out and for a product, it differs the guaranteed rate.

So it’s a little bit more complex in that sense, but it’ll vary. Between two to 3.7, 5% is what’s mandated.

A question went away earlier. We currently have a term life policy since we have young kids. I think everybody should have that. I’m not giving any financial advice here, right? This is no financial advice. But I think that is prudent. We only want it to do this into our kids over 18. If we start to do the infinite banking where we need to cancel the term my fault.

So you don’t need to cancel it. You can still have it, but I would say you probably, if you’re doing 50 I don’t know how much term-life, we’re getting today. But if you’re, you’re getting like a billion, $2 million by getting $50,000 a year for six years in a whole life policy that kind of suffices for that.

So most people will they’ll do is they would cancel the term life and see that was at 500 bucks per years, wherever that costs.

Yeah. And the other, I think the last one we’ve answered, when we’re going over the example about not funding it every year, yeah, we just want to clarify, we’re not, we weren’t suggesting that’s the ideal way of doing it. It was, we were just covering the downside of saying what if you can do it still perform, but yeah, the most efficient ways to fund it every year.

Yeah. It’s like buying like seven containers. Why only fill up three? You could, if you want it to. You had, I would say you train right size. It maybe go a little bit more than you think you can. Like we said, because the splits, the commissions are so low or that the life insurance component is so low, you’re going to hit your minimum of cash dumping into it in the first year.

Most likely. So you don’t have to worry about it. Collapsing cannibalizing itself. But why would you not want to fund it every year? If you’re, if you have say you lost your job one year, and things are a little bit rough. Cool. Just catching up on the next year, skip a year.

But luckily that’s where you put your money, right? That’s where you’re holding your emergency savings account. As it earns four to 5% tax rate. And that’s the beauty of this.

I think those are the open questions.

All right. How much money that someone needed to contribute to build up the cash value to make it worthwhile? That’s probably a personal question, but the numbers so that the illustration we showed, you just, you can add a zero or subtract a zero or cut it in half. It performs the same way.

As far as numbers wise, But the value will be different. How, however much you cut it up, but the way it performs number-wise would be the same. So I think main, you mentioned probably 15,000 target would probably be the minimum. And yeah, I agree in the sense that,

The base premium then at that point is, $1,500 a year or so. You want to try and stay above that a hundred thousand dollar death benefit of whole life of prayer or else you’ll lose a lot of the, kind of the side benefits like that. Enhance benefits rider. You won’t be able to get the most ice rating.

If you get the highest rating, you still just get the non-tobacco rate health rating and have slightly higher fees. It gets less efficient, a smaller unit. Trying to see who miss Mr. Michael is get a little context. Cause everything. That’s what I do. I looked your guys’ profile up. And I see the question behind the question.

Yeah. I don’t know what Mr. Michael’s net worth is. I don’t know his situation because actually he fell off the investor list cause he stopped answering emails. So Mr. Michael, if you’re out there, there used to be sign up for their club. And if you guys don’t open up emails, my system eventually purchasing from the system.

So please be aware of that. But if Michael was million dollars net worth or more. Yeah, I think this is a no brainer for him. But if Mr. Michael barely has any money like I said, it’s not for the lower net worth guys. Therefore if you’re doing a policy for $5,000 a year, I’d say, just save up the money, buddy.

Like it’s not worth the headache for you to do it. My opinion. So

I would say at the bare minimum, $10,000 a year would be the bare minimum. But I would say, try and at least do 20 10, 20, $30,000 a year, especially if you have liquidity or home equity, not doing anything, run it through this thing.

And I think it’s important. Like you’ve mentioned that before, th this is not for everyone. Yeah, but most people here are hi, higher paid professionals, higher net worth is certainly going to be there, accredited investor. Plus at some point, this definitely comes in. I think when your net worth goes over half a million dollars, but, talk to Tyler who gives you your 2 cents in that too.

You guys talk personally. The next question. What if interest rates go up over 4%? I’m not sure exactly for it asking for loan interest rates or the dividend rate, but I think dividend rate, right? So it’s right now, interest rates yields are low, right? So 4% pretty good. If the interest rates environment goes up, do those art dividend rates go up.

Yeah, so that’s a good historically the dividend and the interest rates, they all follow each other. I would say as loan interest rates go up, dividend rates go up also and vice versa. There are floors though. So a lot of times now we’re at a, or at a floor below the floor. So even though interest rates go up.

You may not see the loan interest rates go up because it wanted, there was a lag and also it may not reach the, like the moody, the corporate moody bond index may not be over the 4% floor for a loan interest for awhile. But I think it’s a good question for Mr. J here and I had the same question, right?

I don’t want to have fun. In case interest rates go up and I’m stuck here at my 3.5% that my insurance company pays me for it. I should have done it later, even if it was that case, you don’t want to have that attitude. The whole point is you’re just, you’re not really parking the cashier to make the 4%, 5% you’re taking the money right back out and you’re investing.

That’s the whole idea we’re doing here.

Yeah. So it makes sense to take policy loans to foreign investment. Does it ever make financial sense to use the loan for something smaller? I’ll look at our word that as a liability doodads something, some stupid whimsical purchase. Yeah. You can do whatever you want, but. Yeah, I would say for me personally, it would make sense if you are, especially for a car, if you are financing it and your pain, another financial institution, that interest.

So in that case, I would, there’s ways you take out a policy loan and then instead of paying the financial. Institution, 500 bucks a month or so in car payment, you pay back your policy loan. So for me personally, that’s when it would make financial sense, I’m a true advocate of using it either to buy an asset or cashflow asset or a recapturing interest that is going somewhere else.

So those are the two things I personally use my policy. Yeah. This is definitely off topic, but I’m going through like exotic car hacks.com. It’s a fun little you guys always ask what are fun things I like to do? That’s something, that’s the kind of stuff I do on my free time.

But with cars, you’re able to get a loan for much more than the car’s worth, which seems really irresponsible, but it allows you to make stuff a lot more money off of the value of the car. Stick it. Use cheaper debt. But even though the interest rates might now be like five, 6%, that’s still it’s a loan, right?

That’s not other people’s money now. Tyler is exactly right. I think a lot of car loans these days, especially if you go longer than 60 months is going to be in a higher than what you would be paying in. It’s pause. Certainly, if you’re doing a third party loan from one of these little banks that a lot of the advanced people are doing it 3.2, 5%.

That’s the way to do it. This is for some of you guys who still buy rental properties distressed, this is the place to sit, half a million dollars while you’re still making four or 5% tax-free on the money while it’s sitting there for, so it doesn’t quite burn a hole in your pockets, making something.

Off the table and litigators that the asset protection component. But when you want to buy that also distress, you can go write a check, a couple of days you can take the money cash value from the other deal. I think most people here have moved off from that type of stuff, but some of you guys might come back to that type of lifestyle because you’re quite frankly bored, just looking for something to do it, financial freedom date.

It’s fun. It’s the hunt. And then this gives you the war chest to that.

All right. The next question. What do you mean by a hundred thousand dollars for per year policy? Do you mean you paying that amount in premiums for the year? I think we covered that as far as the premium breakdown. So typically when we’re seeing, if it’s a hundred thousand dollars a year policy, that’s the target amount.

And then where the premium was, would be, or the base premiums would be 10% of that or whatever, the, whatever, the premium split 20 or 30%. But yeah we’re often talking about the target amount is that dollar amount is, that’s not what you’re committing to. Yeah. Do you guys look in that past section or go to the policy illustration example section.

The video when we’re scrolling through the, those real illustrations, that person in that sense, that illustration is pretty not 50,000. Yeah. Yeah. I think most people here to get up to a point where they’re doing a hundred grand a year, and then in six years they built up half a million plus of cash value where they can go deploy and use that as kind of their spammy slush.

And then we covered the inflation. So insurance, the insurance companies are also investing that money or buying bonds, things of that sort. So yeah. It, it should grow with inflation, just maybe lagging a little by, eventually catch up. Yeah. And I think this is, what is your assets backed by?

Like some people like to put money in block five or these defined, crypto staking platforms where they’re making eight, 10, 15% per year. But the question is what does it collateralize with? What’s the backing of it. And in that type of format, that’s the reason why it’s getting such a big rate because it’s really a loosey goosey system where this life insurance contract that you’re going into business with the life insurance company, it’s very secure.

What they’re investing in is very low risk class, a assets in primary markets. And mostly their investment perspective is just for capital preservation. So there, the money that you have with them, the companies, the foundation is very fiscally responsible. Sean van. She,

I am going to couple, I think the question they misunderstood. So the growth from the investments benefits are not tax the growth within a policy. Can grow tax deferred, you access it tax-free by policy loans. When you take all that loan and then you go do an investment with that’ll get tax normally how a normal investment will get tax.

So I think that’s what you’re asking. Yeah. It’s important to make that distinction because for a lot of people starting out this stuff gets very confusing. But yeah, it’s separating two things here.

No, I think this second, this is just the second part of that question. So it would be very similar to the hilar. Maybe when you take all that heat off money and go do an investment. That investment that gets taxed right.

Under what circumstances can you access the money if you need it? It’s really, as long as you have the there’s a cash value and within the policy, you can access the money. So there is no underwriting for the loan. No, you’re basically just requesting it and it shows up. And I think it’s a fair question because you know what the retirement plans, that type of stuff alone or withdrawals, you always got to substantiate it with some kind of hardship or there’s limits none of this such with this.

And, he locks that the bad thing, what I don’t like about Healogics is in this happened then like 20 years, Two or 2008, 2010 is when things kinda got topsy-turvy. The banks pulled all those loans and they didn’t get access to that, which I really don’t see that happening with these types of policies that the asset is back it’s life insurance.

It doesn’t make much money, but it’s very secure assets. So I wouldn’t imagine any of these life insurance policies would pull the loan or freeze the loans on these types of things.

What was the law of change and impact in IBC? That was the, I think we answered this. This is, do you know why that’s there was a code? That’s why they did that or any contexts? It was really pushed by the insurance companies because it helps them. There were. Honestly, struggling to keep up with the 4% guaranteed rate.

So this allows flexibility in this true low interest rate environment, they were able a lot of like guardian was able to inject a lot of other benefits. So it’s not. It’s not like a huge detriment to us as policy holders and yeah. Keep in mind that, I still, yeah. That’s why you want to go with it.

The mutual insurance company is that, the strength of the insurance company, it gets paid back to you in dividends. It is making them financially stronger. They’re, they’re giving it back in different ways. I guess more in ways more they can control, but they’re, loan interest rates also for some of these policies are reducing our Loring.

So instead of maybe a 6%, it’s going down to a 5% and the policy loan interest rate, so there are some other benefits to it. Would you say that it was like a consumer protection or makes things so much transparent for consumers or it was more from the, from what I know it is more pushed from the insurance company.

Yeah, because it’s we’re in a low year. Investors are starting for yield and it’s hard for the insurance company to provide it. And that’s something for people to understand too, right? Like a lot of these laws are the way they are is because the insurance companies are very high lobby.

They have a lot of influence in the way tax code is written too.

The next one is just, I guess someone’s signed on late, but it is being recorded and laying will be posting these and you guys will have access to the entire e-course here. We know we skipped over a lot of like FAQ’s that we cleaned up for you guys and we’ll put all these recordings in the individual sections.

That’s how I was starting and stopping the recording. Sorry for that. The final product will be, this is infinite banking I-Corps so that you guys can refer to what will probably happen is, like when I first did my policy, I’m kinda wanting to do half of it. That’s all I really needed to know.

That other wealthy people are doing this too, and essentially how they were doing it. But then you kinda, as the years go by, as you start to see it actually working for you, right as the policy comes up to a substantial amount of money, over a hundred thousand dollars of cash value, you start to use it.

You start to get, you get more confident in it. And then you start to want to understand that the new lots is cause you’re a little bored. I think a lot of us are, we’ve enjoyed learning about these types of financial hacks. How do you figure out your max death benefit? It’s a generic number based on your age and it’s really, or your stated or an income. You, it’s a multiple of your, your stated currently. Based on age. So th the ballpark is, in your thirties, it’s 30 times your annual income in your forties and I, 25 times in your fifties, 15 to 20 times.

And then in your sixties, it’s usually 10 times your annual income is the max death benefit, but the best way is just book a call then. And then just see, almost policy illustration, just see where yours lights up to be. But again, we’re not configuring this to death payout. So if you’re older, younger, it doesn’t really change it too much cause it’s not predicated on the death payment component.

I sh I should share that, with the newer product, the. Or you’re able to get, a higher Mac for a lower death benefit. It does help some of maybe the borderline earners where they’re trying to stuff in 50,000, but based on their annual income, they can only, and the calculation for the death benefit currently, they’re not able to do that because the death benefit required is too high.

But now that in the new product, that death benefit required would be a lot lower and you’re still able to do, maybe the 50,000. So it’ll be probably easier for some, maybe some lower income earners to qualify.

I’ll let you take this one lane. Now you use there’s some good questions guys. So the question was, if you’re just out of college in your first jobs, when you should consider that the whole life IBC, and this is not from some young whipper snapper, this is from a investor thinking about their kids, right?

From one perspective, from a, just a insurance perspective. Sure. This stuff is infinitely scalable, right? Big and small. So if they want to get it, they can get it. But I think this is an awesome idea to give this to your kids and it really teaches them how, like you have different places, you can put your money and make different varying levels, a yield here.

In this case, they’re making something halfway decent, like 5%, which is a hell of a lot better than what they’re going to get in your bank account. Sure. They have to plan and wait a couple of days. The chunk of money to buy a PlayStation or video game or whatever they want. But, I think this allows them.

You don’t learn about this stuff unless you do it. So I think this is an excellent idea. Even for younger kids to potentially, although, you start to run the whole argument, is it worth your time? The pain in the butt factor for a smaller policy, but then again, I guess kids completely fall on the category.

PETA. But if it teaches them like, you know how to manage their money, the way that the wealthy do, I’m all for it. And I think this is something that is very, if you do this for your kids, it’s very different from what their peers are going to do. And that’s in a way, I think you want them to understand that they live a very different life than most people out there doing things that traditional.

So if you want it, you can fund it. They can own it. You could own it. There’s different configurations and how you want to do this. You probably want to own it. If you’re concerned about your college kid dropping out and becoming a crack head, that’s always a thing and you can embed it in your trust and do what’s called again.

You want to Google islet. It’s not really talked to much these days because the state tax threshold is higher than normal. But that probably that’ll be coming more of a topic that we’ll talk, discuss more in the future and bring up the clients. But yeah. Yeah, maybe I’ll answer. So diff it’s I think personally, if it, if you’re right out of college working your first job, It matters what you’re investing in.

Again, these policies you are giving up the liquidity upfront, so it’s costing you, that 17% or so, or 13% or so upfront that first year, if you can go ahead and use at 13% and do an investment instead, and you need that 13% to make every dollar work, especially early on IBC is probably not. Doing that right now is probably not the best idea because you’re going to give up that liquidity.

I would say, put that money to work first and then come back later in on in a few years, maybe. For most of you guys listening, if you guys are under foot or midnight, half a million dollars, don’t do this because you’re already, you guys need to go buy a rental properties and you guys are already on like the forefront of pulling down 30 grand on the turnkey rental for a hundred.

So you don’t want to be paying, every dollar super precious to you guys when you guys are broke like that. So you don’t want to be putting that to fees, but most of us listening, we’re going to do this, we’ve got, you’re going to pay the fees, but you get the utility that you’re going to really see in the next three years, even well, beyond that, a lot of the breakeven points are five to six years.

On these types of things. But what I was thinking here for this specific scenario, Tyler was this kid is in college. He’s another two years away from even thinking about buying a rental. So now would be the time to load the policy. So when he actually grows up and actually looks to actually invest two to three years later, this policy is primed and ready to go.

Oh, he has. Yeah. Got it. Tara and I are both very passionate about, passing. Generational wealth that these kind of, these ideas of this. So I think, all right is the Mac irreversible tenue ear or two to turbo charge and then get back under the maximum limit. So the Mac is not a reversible.

Once you map the policy becomes. An event, a modified endowment contract. ER not, there may be ways of slightly supercharging, which we can go into details on a, on a one-on-one call or whatever, I can go over some of those tricks, but yeah, it’s not a reversible. So Justin is the classic case that the guy who sits around for a couple of years and missed out on all the schemes that he could have been doing with it, like tries to figure it all out now.

That’s probably maybe 5% of the population here. But again, I’m just mentioning it because there are some people that are like that likes to get wrapped up in these details. I honestly didn’t even know what MEC was for like two years. And then I figured out what it was and you’re buying a commodity here.

It’s life insurance. Can we, it just needs to be configured in a right way.

This is a common question. Wouldn’t it be advantageous to continue paying the premiums even after the seven years? The typical answer would be it,

it may, we can’t necessarily give a blanket answer. So there are times when yeah, you continue. You want to pay the premiums. There may be reasons you don’t want to open up another policy or. My standard one is that with, at least with garner, when we’re maximizing the cash value, you’re able to continue pain, as long as you want, it just may not be the best use of those dollars having it, or the most efficient, and instead divert those dollars to either another policy.

It’s not gonna you’re paying the premiums either way, whether it’s a long funded policy or you’re opening up another policy. The premiums and costs are all relative or all the same just structured slightly differently. I’ll add onto that.

Like in this one situation where I think everybody might fall in this category, a lot of you guys are on the fast track. Your situation would be drastically different in five years, your financial outlook, they’re different. You just got to get started doing this stuff. So in five to seven years, your job will change you.

You’re going to increase your investment holdings. You’re going to be in a lot different place, and you’re more than likely going to want to like double, triple the size of your policy that you’re putting in today. So if you start off with 30 grand may want to put a hundred grand after the first few years.

That’s my angle on this question here. And I’m always like, especially when you’re starting out, just get a smaller policy and just get it going. And if you have to get another layer, another six, seven year policy, right on top of it a year and six months from now, then also, it’s just the little bit more paperwork, but if whatever the mistake is waiting on this.

And trying to figure out what is the best one? No, I’ll just go on and do a smaller one. If it helps you get going further on the path, six months ahead of schedule.

Yeah, there’s this a good question. So I agree with the 10 90 split too, but Nash Institute, people are, again instead, do you have an opinion about this? Yeah. Great question. And I’ll sit and rash. The typically, yeah, I think a lot of their designs are really like a 40, 60 split. And he even advocated at some times, not a 2080, but an 80 where it’s base premium 80.

Or even a hundred can work at times. I think that’s good for possibly the long run. The way we’re structured, especially in this group is the, is for investors. So I per se like the early cash value access, the liquidity there so that I can go out and do something else. If you were to just purely look at the policy by itself and structure it, maybe, the would a higher split.

It’s more for like the long funding and you’re going to be funding it for 20 or even the whole life of the policy. And it behaves a little differently than what I personally intend to do with it, which is pull the money out and then have it again, working in investments. Yeah.

It’s from a different angle, when you do it the way they do, you make a lot more commission. So if you’re the sales man you’re going to, it’s better to do it that way. Or the way we do it is better for the client and it just doesn’t make as much commission. So that’s stupid, but, there’s a business these in behind it and at the same time, there’s all this is guys.

Sorry if we went this long. Tricked you like, this is just whole life insurance configured in a way. And you’re, over-funding it, there’s a lot of different name brands up there. Infinite banking from yourself, your own bank. I don’t know any other ones, Tyler, but these are just like marketing terms really means nothing.

All that. What it comes down to is working with one of the big insurance companies picking the right product and then configuring it in the right way. To have it set up like how we’re doing it, where it’s advantageous for investors with lower commissions or fees and you maximize your cash value up front.

That’s all it is. And that’s why it’s aligned with the mission of simple passive cashflow, which is to, cut all the crap out there. Like these huge fees, all these middle men this is why when you do it in this way, able to get on the path to financial freedom so much faster and cut off all these games and commissions and all this other stuff.

But yeah, don’t tell him, we told you though. All right. The next question. How is the 90% PUA tax reported? I’m not quite sure on that question, but I would say that all money going, using to pay whether it’s the base premium or POS that’s after tax dollars, solar you’re paying into it after tax dollars.

As far as how that’s being taxed. It, I dunno, I don’t know if you understood that question a different way. Yeah, I think you got it. Just out of curiosity, like what happens when, like you kick the bucket and your family gets that $2 million death payout, does that get texts so that it was transferred tax free?

The thing people got to watch out for a lot of times is the estate tax though, especially if it’s a large policy and that’s the one where like right now, If you have a couple, they can both give 11 million. I believe so. As long as you don’t make one of those huge policies, you don’t have to worry about it.

But there’s talks about that decreasing. So then that’s that. Yeah. And that was like the question that came there in the very beginning about that PP. Private placement life insurance. You guys are under $5 million net worth disregard what I just said. Don’t worry about it.

If we’re going over premium finance for life, I not in detail, but we, that’s something offline. What we’ll we are diving into it. Justice. Definitely we’re going to Guinea pig it with you guys first, for sure as we do it ourselves personally, but again, there’s a lot of market in terms for that type of stuff.

Philosophy, banking, payment financing, it’s all the same thing. It’s all annual product with a contract with a bank that gives you the leverage.

Are we supposed to overpay the policy loan as a way to backdoor fund the cash value. That is one way, typically the ways you’re max funding it upfront, and then you’re taking the loan out. So you’ve already almost gone up tier here, almost your max teething limit. When you are paying back the loan, you can choose to pay more.

And that, that just drives down the effective loan interest rate or what you’re being charged. Similar to a sweep strategy using a hilar if people are familiar with That’s something I do at times also, when I, whenever you have your income or a paycheck, come in, you can pay down your loan.

Then as expenses come to you, you take it out. You’re keeping your policy loan as low as possible. But you for this specific question, the way I like to think of is you’re already max funded at, and then you take out the policy alone. Like what some people will do with those Healogics is they’ll set up their checking account to pay all their bills that also pays their fee law.

I haven’t found out a way to look it up completely in line with your life insurance. Perhaps something will come on in the future, but it’s easy enough already to make your Gmail. If you want to do it that way, but that’s essentially it. If I think Justin is this new to Justin, like it’s very simple.

We talked a lot about more advanced stuff that we really don’t really need to know, but that’s effectively what we’re doing here. We’re stuffing this whole life and that’s why it’s called whole life over funded with a bunch of money. And then we’re taking that excess, taking it as a loan. A lot of people who have, W2 salary, more consistent income, consistent, expensive, I would say most of you guys are the strategy will be taken every single last penny of that cash value and going on investing it because there’s a higher, best, better use out there personally.

As a business owner, and I think this speaks for a lot of business owners. You guys know, sometimes you can have increases in income, decreases in income. Sometimes you might have to buy a CapEx expense for me. I keep a lot of dry powder on the side, just in case we might have to bring in extra money into a deal as a general partner.

So I like to keep a lot of dry powder in my cash value policy and I don’t vest it completely. Okay. I like to keep at least several hundred thousand dollars of dry powder just to add into a deal in case the pool cracks or something like that. So that I don’t, we don’t have to do a cash call and I can just loan money to the deal or throw in cash as a general partner sponsor.

But I would say that’s a very rare case. And for most of you guys are just taking, putting the money in putting it right back out of the cash flow.

All right. You can use it as long-term care insurance. You can also use it as well. Yeah. So the benefit with having maximum cash value is that it’s really, you can use that cash value for whatever you please, there are some features, the accelerated, enhance benefit rider. That’s the. It’ll you’re able to have access to the death benefit if for a terminal illness or a chronic illness, or you could also put on a long-term care rider, but there are ways of accessing the death benefit while you’re living.

Again. You always have access to the cash value in the form of a policy too long. That there is that also.

I’m going to, I’m going to clear this. Did you capture it already?

Got it. And the next one is just a continuation of that.

All right. How long is the loan term? So there is an old term. That’s part of the beauty of taking a loan policies that you don’t, you determine the term. Is very flexible in that, but it also requires something solid. I highly suggest that, you create a term that works for you and you.

You stick to that, but it is flexible. There’s no repayment plan. Insurance companies are able to do that because they’re, collateralizing your death benefit. And at some point you’re you’ll die and they’ll get their money that way. So they’ll just take it out of the death benefit and then give your beneficiaries the remaining amount.

So of course, what are some things. Void the contract, if you commit suicide or whatever you to read the fine print. But like off the top of your head. Yeah. So unlike so usually there’s just a two year hold for a suicide. So it’s still, most companies will still pay out for suicide, but it’s a two-year hold.

Yeah. Every policy, product or company is different, so yeah, you would have to read the fine print. Just going back to the long-term care or the enhance, accelerated benefits. Some of those, if you develop a chronic illness or a terminal illness, but I feel as a result of maybe a suicide attempt or drug use or drug abuse per se, Some of those won’t be covered.

So there are, as you do have to qualify for some of that. Again, that’s not why we’re using the product, but just to be aware of that, and again you have access to the cash value. One thing that I would say is if you’re a smoker with your smoker on the thing, cause I’ve seen them throw up policies or payouts based on that they can prove otherwise.

But any other. Things like that. It goes without saying, but I got to say it. Yeah, no yeah. That’s right, the company, these are reserves the right to have the final say on know if on your underwriting, you said you never. Smoked. And then you have lung cancer and there are signs that, you passed away because of that, that there’s, that may have caused the company to say, we’re not with camp, we’re not going to pay this out or at least reduce it or something.

But to touch on that too. A lot of times, we’re not because we’re not necessarily doing it for the death benefit who you insure. Sometimes doesn’t matter if it’s within your family, associate a spouse. If the male has some underlying health conditions, That’s where maybe you, you say, Hey, we’re going to ensure the wife who’s healthy and the policy can work and you’d have access to that cash value.

Then there’s the owner of a policy, the beneficiary of a policy. And then the insured, a lot of times the owner and ensure it doesn’t have to be the same person. It’s just, I think the only issue is like, if you get it on your. Yeah, I know you always all have access to their online portals, do whatever you want, but if you have to call something in, I think that they have to call it in for you potentially, or maybe you have to designate Dennis.

Yeah. Sometimes. Yeah. Yeah. A lot of times with the online portal. It’s yeah, it’s like fine. So joint McCollum, online banking at times. So I told my wife, we’re going to make our next simple passive casual shirts are going to be. Or our spouses, like I’m only here because I have to co-sign this long husband, hey, what do you mean? I can’t put the loan in. You can’t put the loan for your rental property in your knee. I don’t want to get it. Just, don’t worry to sign this stuff the same thing, but I don’t know. What did you do? Do you store it all in your, under you personally split? My wife has one.

We’re actually opening up another one. And then I have my, I have a couple of lanes. Okay. I split, I just, just to keep it even cause it’ll be super sad if she goes away. So

yeah, I think I’m, I think it’s all on me, maybe that’s the intention, right? If financially I’ll be okay. Yeah, but I know that’s another, and I think this is where you talk with individual people just see where their head’s at and just get on the right person. It’s not super important, but something to think about too.

Who’s the beneficiary. All right. We’re getting down to the last few. Can you set up a one-year paid-up policy versus six to seven year policy? Yes, you can. I’ll tell you that a one year lump sum payment will not perform as good as counter-intuitive you think that you front load it and you stuff it all.

Then I start running dividends, but remember that there’s that MEK limit. So in order to be able to pay a certain amount there, looking and saying, okay, you’re going to have to pay that amount for the seven years. Even if you don’t pay it. So in order to lump sum this large amount in year one, you’re going to need this huge death benefit because it’s going to look like you’re paying that premium for the next seven years.

So it’s that large death benefit will eat away at all of the costs versus. Spreading the payment out, between two or three years. I like to say, five is probably the shortest seven is the most efficient as far as stuffing the most in. But you can see very good returns in the five-year one.

It’s just because you’re paying for funding it for seven years, even though you’re not, a lot of people will do 10 years because it’s around them. But I would argue, as I said earlier, like your life situation will change every five years. Like you guys are on the fast track financially. To me the shorter, the better, but I didn’t know that, I didn’t know.

You could just do one or two years, but my, I didn’t know that, but if the sweet spot is six to seven years. Yeah. And definitely, we can set something out by I’ll show, whatever. Policies and we can illustrate it. And that’s where we just compare things side by side.

Things will behave differently for each individual. So it’s always best to just illustrate it and put it out on a spreadsheet and compare it and okay. Yeah. Don’t do that with Tyler. Do it with the other guys, have them go through that. Rick and Paul just do it with us cause we’ll beat them on pricing anyway.

So it seems like a pain to do. I think there’s some we started. Yeah. How does the loan usually need to be paid back annually? Quarterly. It technically doesn’t. If you don’t make any interest payments, the policy will just start borrowing from itself. Or the cash value was, will start going down as the need for interests grows.

So that’s what’s happening. And then at some point, it’ll, it could erode all the way, but there’s ways of designing it too. Matters what people’s goals are. Some people they want to, when they’re 8 65, Start drawing 50,000 a year for 20 years or so. So that’s how we’re deciding the funding period or the funding amount to reach that goal.

And their intent is they take out that $50,000 loan make zero payments and want the policy itself to still maintain. So it just tweaking the policies and that’s, I know exactly like a reverse mortgage, right? Yeah. Yeah.

Something like comedic close, but we have a spreadsheet of this stuff, but since we’re recording this, the banks change all the time, but I don’t know. When you guys do your call with Tyler, he can share the sheet with you guys. There’s like about 12 different banks across the country.

Some of the people in the family office groups helped us out. I called the ball and then talk to the people. So you have the names and contacts of the people that you want to work with. If you’re, if you want to do that. I personally don’t. I think it’s a pain to do that. I don’t utilize my entire cash value loan, but if you had a cash value of more than a quarter of a million, it might make sense, but we’d have to do that.

But they’re really these obscure banks, like I’d never heard of these banks before. They should send us a coffee mug for sending all these random people from California, Hawaii, Washington, Texas out there. Yeah. Any last question?