BetterWealth with Caleb Guilliams
Life Insurance Agents Review Bad & Great Infinite Banking Designs for Penn Mutual
Feb 9, 2024
Product design specialist, Alden Armstrong, joins the show to review different whole life insurance policies for infinite banking. They discuss the optimal policy design, the significance of early liquidity, and compare different policies and design types. They also break down a max funded life insurance policy and highlight its benefits as a savings machine.
41:32
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Quick takeaways
- The first whole life insurance policy design focuses on high cash value and early liquidity, but may not be ideal for those seeking a large death benefit.
- The second whole life insurance policy design, known as the 40/60 design, provides more flexibility, earlier cash value accumulation, and a significant death benefit.
Deep dives
High Cash Value with Lesser Death Benefit
In this podcast episode, the speaker discusses a whole life insurance policy design with a focus on high cash value and a lesser death benefit. The policy design starts with a significant cash value in the first year, but the death benefit is relatively lower compared to other designs. The policy allows for early liquidity and the potential to recoup the dollars invested in cash value. However, it is important to note that this design may not be ideal for those seeking a large death benefit for their family. The internal rate of return improves over time, reaching up to 4.2% at year 25.
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