Sounds simple, and we all have an idea of what the product is, but what is it?
- Universal Life – (i) level death benefit option; (ii) insured amount plus account value death benefit option; (iii) guaranteed investment accounts; (iv) indexed investment account options; (v) single life coverage; (vi) multi-life coverages; (vii) joint life coverages (A)last to die – (a) costs to last death; (b) costs to first death, (B) first to die.
- Whole Life (participating life) – (i) projected death benefits; (ii) illustrated dividend rate; (iii) investment pool asset mix; (iv) guaranteed death benefits; (v) projected cash values; (v) guaranteed cash values.
- Term to age 100 coverages – (i) without cash value; (ii) with cash value.
- Term Insurance – (i) 5 year term; (ii) 10 year term; (iii) 20 year term; (iv) 30 year term; (v) pick a term; (vi) conversion privileges.
Perhaps it is not so simple.
With all of the permutations and combinations, uncovering the appropriate type of policy and design is only the first step in a comprehensive process.
Leverage is common tool used by most successful entrepreneurs.
The benefits include: (i) retaining your own capital while acquiring another income producing asset; (ii) leveraging your capital to acquire a greater asset with a view to maximize the returns on your equity; and (iii) reduce the cost associated with the acquisition of an income producing asset by using borrowed funds.