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CalvinT · 07-12-2007, 07:49 PM

I read through the Kiplingers forum and I think we are talking about Apples and Oranges, that forum starts out with a brief mention of a loan against a Whole life policy, but then mainly deals with a product called Term ROP.

A quote from Kiplingers "What I was meaning is that since roughly 2% of term claims actually pay out, in essence it would appear they are "borrowing" money from you interest free."

A Term ROP plan has a lower premium than Whole life Ins, and at the end of the term the just the premiums paid in are paid back to the policy holder, there is no growth in cash value or death benefit in these plans.

Regular Term insurance in essence is just giving the Life insurance money with no real hope of getting it back. 99% of term policies are never collected against as the policy holder does not die before the policy expires. Whole life, 100% of in force policies are collected against as eventually 100% of people are going to become deceased.

But once again I reiterate, This Bank On Yourself program is a way to create a hardworking pool of money for an individual to loan to themselves and keep the bank out their pockets. The death benefit is a nice bonus.

There are about two posts in the Kiplingers thread dealing with Whole Life Insurance, #29 and #30 which battle back and forth about the benefits of Whole Life, #29 is close to what I am talking about, he has this statement in his post "And to make this clear, whole life is not an investment...it is insurance" Which in a normal insurance strategy is true. But in the BOY strategy, Since you have chosen the correct type of policy, Mutual company, non-direct recognition with a paid up additions rider, you can loan the value of this policy to yourself pay yourself interest which you would otherwise pay the bank, and have no loss of gain on this loaned out money in the policy.

Also you can Loan this money out to yourself for any other investment opportunity you see fit! Try talking your local bank for a loan to invest in the latest greatest HYIP! (lol, maybe not the most frugel of uses of this money but you get my drift) there is no way they would let you have any money. But with this strategy you are in total control.

Give that forum another glance and if you disagree with my conclusion, let me and we can continue this discussion.

Thanks

CalvinT

07-12-2007, 07:49 PM	#8 (permalink)
CalvinT Junior Crapper Join Date: Apr 2007 Location: US, AZ Posts: 83 My Mood: Portfolio: I give up!!!!!!!! Fav Ecurrency: E-gold Thanks: 26 Thanked 18 Times in 13 Posts	Re: Make money by saving money. I read through the Kiplingers forum and I think we are talking about Apples and Oranges, that forum starts out with a brief mention of a loan against a Whole life policy, but then mainly deals with a product called Term ROP. A quote from Kiplingers "What I was meaning is that since roughly 2% of term claims actually pay out, in essence it would appear they are "borrowing" money from you interest free." A Term ROP plan has a lower premium than Whole life Ins, and at the end of the term the just the premiums paid in are paid back to the policy holder, there is no growth in cash value or death benefit in these plans. Regular Term insurance in essence is just giving the Life insurance money with no real hope of getting it back. 99% of term policies are never collected against as the policy holder does not die before the policy expires. Whole life, 100% of in force policies are collected against as eventually 100% of people are going to become deceased. But once again I reiterate, This Bank On Yourself program is a way to create a hardworking pool of money for an individual to loan to themselves and keep the bank out their pockets. The death benefit is a nice bonus. There are about two posts in the Kiplingers thread dealing with Whole Life Insurance, #29 and #30 which battle back and forth about the benefits of Whole Life, #29 is close to what I am talking about, he has this statement in his post "And to make this clear, whole life is not an investment...it is insurance" Which in a normal insurance strategy is true. But in the BOY strategy, Since you have chosen the correct type of policy, Mutual company, non-direct recognition with a paid up additions rider, you can loan the value of this policy to yourself pay yourself interest which you would otherwise pay the bank, and have no loss of gain on this loaned out money in the policy. Also you can Loan this money out to yourself for any other investment opportunity you see fit! Try talking your local bank for a loan to invest in the latest greatest HYIP! (lol, maybe not the most frugel of uses of this money but you get my drift) there is no way they would let you have any money. But with this strategy you are in total control. Give that forum another glance and if you disagree with my conclusion, let me and we can continue this discussion. Thanks CalvinT