Posted by (insurGuru©️Insurance College Column) Entrepreneurs and business people understand the importance of "cash flow" for growth.Funds can be said to be the lifeblood of doing business.When we go to "borrow money" or "finance", we will find that this process may be quite difficult, even extremely painful.Once there is no capital injection, our business faces the risk of bankruptcy.
NowadaysAmerican Life Insurance Guide©️Deep into the business history of the United States, and take a look at the well-known brands that are now well-known in the United States: JC Penny, How to use it when faced with a shortage of funds in the past"Cash Value" Life Insurance PolicyThe story of overcoming funding difficulties.
JC Penney founded in 1913
James Casey Penney (James Cash Penney) From 1898, I worked as an apprentice in a small dry goods chain store.Subsequently, the store owner opened a new store in Wyoming and gave Penney one-third of the partnership shares.With Penny’s help, two new stores were opened later.In 1907, the first few partners decided to withdraw, so Penney bought all the shares of these three stores.
By 1912, he owned 34 stores in the Rocky Mountain area.In 1913, Penny moved the company to Salt Lake City and formally established the well-known JC Penny Company.By 1929, JC Penny had 1,400 stores across the United States.
What followed was the stock market crash in 1929 and the subsequent Great Depression in American history. Penney’s store and accumulated personal wealth were destroyed. This drastic change also severely damaged Penney’s physical and mental health. .
In order to keep the company alive and bounce back after the depression ended, Penney began to borrow from the cash value life insurance policy he purchased, and used the cash flow provided by the policy to pay for the company’s daily expenses and employees’ salaries, and finally survived. Overcoming difficulties.
now,JC Penny It has 1,100 stores in the United States and has an annual turnover of more than $180 billion.in 2011,JC Penny It also spent $5330 million to hire Ronald Johnson, the former CEO of Apple, as the company's CEO.
The secrets of cash value life insurance policies
The cash value life insurance policy is a very flexible tool. In this case, Penney is using itSavings life insurance policyType of Insurance (whole life) To help the company tide over the difficulties.by understandingJC PennyLife insurance policyLoanIn the case of surviving the Great Depression, we can also find that this type of life insurance policy can provide a liquidity.American Life Insurance GuideBelieve that this advantage is usually ignored by entrepreneurs or business people, manybrokerAnd financial advisers usually don’t talk too much on this topic.
One of the most commonly heard sayings is: "The premiums of whole life insurance are too expensive." But on the other hand, the potential benefits of a well-designed life insurance policy far exceed a large amount. The ability to save money in an account.
When we deposit money in a cash value insurance policy account, it is like depositing money in a bank account, and the money in the policy account can help us earn interest, the income is free of capital gains tax, and can be rolled to create more Great cash value.This "cash value" can provide an emergency "cash flow" to our business at a critical time.
In the next insurGuru©️Insurance CollegeIn the column, American Life Insurance Guide will continue to introduce, "'Several Famous American Brands Saved by Life Insurance's Story of Disneyland (XNUMX)".
