Posted by (InsurGuru©️Insurance Academy) in "A series of stories about famous American brands saved by life insuranceIn, American Life Insurance Guide Network©️ shared the stories of these successful entrepreneurs and dreamers.From Disneyland, JC Penny, to McDonald's, these brands that are well-known all over the world have invariably been linked with cash value life insurance policy accounts during their growth and establishment.
After reading these stories, we can't help but ask:Why do these American entrepreneurs all configure life insurance policy accounts?What are the characteristics of U.S. cash value life insurance they fancy?In other words, what are the advantages and functions of American life insurance?To answer these questions,American Life Insurance Guide©️ This is a three-part analysis and interpretation.
Flexible liquidity
For an entrepreneur, our business may begin to grow rapidly at any time, and maintaining this growth requires a lot of financial support.Anyone who does business, whether it is a self-employed owner, a startup technology company team, or a listed company CEO, VC or PE organizationThey all pay special attention to the liquidity of funds and the degree of control and domination of funds.
Most entrepreneurial teams, businessmen, or business owners usually put the company’s liquid funds in a U.S. bank account in accordance with the traditional practice. The advantage of this is that it can be accessed immediately, but the disadvantage is that the Bank of America The rate of return on deposit interest rates is extremely low.
Especially for Chinese companies or entrepreneurs who are engaged in Sino-U.S. business dealings, we also face the following problems when dealing with U.S. banks:
- age limit
- Credit check
- Financial certification audit
- Anti-money laundering investigation
- ...
And the American Life Insurance Guide ©️ shared "How famous American entrepreneurs use life insurance policy accounts"ofStory caseTell us that the assets placed in the lifetime cash value life insurance policy account can circumvent these problems and be withdrawn from the policy account at any time to provide liquid funds for company operations.
In addition to "borrowing" money from our policy account, we can also choose to only "withdraw" the deposited principal.These two methods have their own advantages and disadvantages. In a better market environment, "borrowing" with a reasonable interest rate can provide better financial returns.The column of American Life Insurance Guide Network©️ has carried out thisSpecific explanation.
It can be said that the life insurance loan terms stipulated by the law are what we can find in the market.The most flexible and friendly loan terms.
The most important point is that some excellent American insurance policy products will provide a fixed lifetime loan interest rate of 5%-6% at the time of application.If we go to a commercial bank and ask for a 5%-6% SME loan interest rate...
Safe growth
As an entrepreneur or business owner, although our main source of income is the company's business.But there is no need for us to accumulate idle cash in bank accounts with low interest rates, and let the bank take our money to help the bank make money for itself.This is not an all-or-nothing choice, but a better asset allocation plan.
Certain brands of life insurance accounts enable your policy’s internal assets to realize:
- In today's low interest rate market environment, provide a fixed annual growth rate between 4% and 5%
There are also some brands of life insurance accounts that also provide us with the opportunity to earn:
- The bull market environment has 10% – 15% of the annual income, and the bear market environment has a 0% guarantee to counter the risk of loss caused by the market decline.
No matter what kind of whole life insurance policy, we need to carry out professional design and configuration according to our actual situation.Under reasonable use, even if we lent money from our own insurance policy, after injecting a certain amount of working capital into the company, the cash value of the policy account can still be capitalized in a specific way.
we know,The liquidity of funds is almost the lifeblood of every entrepreneur or entrepreneur.Whether it is an urgently needed amount of cash in the gap between accounts receivable, or to fund the company's next growth plan, our cash value life insurance policy account can help.
Preferential tax conditions*
The United States is a country with ten thousand taxes and ten thousand taxes. The ordinary income tax and capital gains tax will take away 15%-55% of the asset appreciation.If we circumvent these situations reasonably, it is tantamount to increasing the same benefits.
If we use government tax incentives to save money, such as IRAs, 401(k)s, profit sharing plans, or pension plans, then we can reasonably avoid or delay paying these taxes until retirement.However, if we need to use the funds to provide emergency liquidity before the age of 59.5, we will face a 10% withdrawal penalty.
For an entrepreneur or entrepreneur, locking up the liquidity of his funds before the age of 59.5 may not be a good choice.
If the policy is properly designed, our life insurance policy account is more like an enhanced Roth account, which is not subject to the age limit of 59.5.If our 2019 household income exceeds $193,000, we cannot use a Roth account.However, there are no income restrictions on opening a policy account and depositing and withdrawing from our whole life policy account..In fact, on the contrary, compared with the 6,000 annual payment limit of $7,500 or $2019 set by the US Internal Revenue Service, we can put more into our life insurance policy account.
At the same time, this is the lowest tax rate in the history of the United States. After more than a decade, will we still think that the tax rate will continue to remain at such a low level?If we all agree that the future tax rate will definitely return to increase, then we need a long-term account that can provide the following tax advantages:
- Provide tax incentives for asset appreciation
- Provide tax-free withdrawal methods, no age restrictions
- Provide tax-free death compensation
While the U.S.Cash value life insurance policyThe account is the choice of these well-known entrepreneurs.
Article summary
Doing business and starting a business is a very risky thing for us. Therefore, we have a safe and reliableAsset allocationCategories and asset liquidity are critical.Although banks have always claimed to be a safe haven for funds, this is not the only option.American Life Insurance GuideFrom the shared stories, we can learn from these great entrepreneurs that life insurance is a betterAsset allocation method, Does exist and is applicable.
*The information in this section does not constitute professional advice on taxation and should not be used for such purposes.The figures concerning taxation are from the website of the Internal Revenue Service and related information websites.If you have any questions about the content of this section, please contact your tax, legal or other professional advisors.
