Bank On Yourself

Bank On Yourself is a company that specializes in helping people achieve their financial goals and objectives using a little-known variation of a whole life insurance policy, combined with powerful financial principles not currently taught in schools or universities. The company’s mission is to educate Americans and help them achieve financial security and peace of mind.

How to control your control financial security.

Annuities

An annuity is an insurance product that produces an income stream for a specific period of time. It could be a set number of years or for the remainder of investor’s life. The main purpose is to relieve the risk of superannuation, the act of outliving one’s income. It is often considered to be a wise investment choice in retirement planning.

Once an annuity is purchased, it is scheduled to make payments, usually monthly or quarterly. This is ideal for retirees who need a reliable source of income.

The size of the payment is determined by:

  • The client’s age and gender
  • The particular payment period
  • Type of annuity – a fixed, indexed, or variable product

An annuity grows tax-deferred until the funds are withdrawn from the account. The funds cannot be withdrawn until age 59 ½. In many cases, they’re exempt from probate and creditors. Although exact qualifications and rules do vary from state to state.

Unlike other tax-deferred retirement vehicles, there’s no annual limit to the money that can be invested in a stand-alone annuity. While this is a plus at any stage of life, it’s especially helpful as retirement approaches. An annuity offers the chance to save as much money as possible without sacrificing the tax-deferred status. When it comes to saving for retirement, every dollar counts!

 

Term Life Insurance

Term life insurance provides coverage for a certain time period. It’s often called “pure life insurance” because it’s designed only to protect your dependents in case you die prematurely. If you have a term policy and die within the term, your beneficiaries receive the payout. The policy has no other value.

You choose the term when you buy the policy. Common terms are 10, 20 or 30 years. With most policies, the payout, called the death benefit, and the cost, or premium, stay the same throughout the term.

When you shop for term life:

  • Choose a term that coincides with the years you’ll be paying the bills and want life insurance coverage in case you die early.
  • Buy an amount your family would need if you were no longer there to provide for them. The payout could replace your income and help your family pay for services you perform now, such as child care.

Ideally, your family’s need for life insurance will end around the time the term expires: Your kids will be on their own, you’ll have paid off your house, and you’ll have plenty of money in savings to serve as a financial safety net.

Whole Life Insurance

Like all permanent life insurance policies, whole life provides lifelong coverage and includes an investment component known as the policy’s cash value. The cash value grows slowly, tax-deferred, meaning you won’t pay taxes on its gains while they’re accumulating.

You can borrow money against the account or surrender the policy for the cash. But if you don’t repay policy loans with interest, you’ll reduce your death benefit, and if you surrender the policy, you’ll no longer have coverage.

Although it’s more complicated than term life insurance, whole life is the most straightforward form of permanent life insurance. Here’s why:

  • The premium remains the same for as long as you live
  • The death benefit is guaranteed
  • The cash value account grows at a guaranteed rate

Some whole life policies can also earn annual dividends, a portion of the insurer’s financial surplus. You can take the dividends in cash, leave them on deposit to earn interest or use them to decrease your premium, repay policy loans or buy additional coverage. Dividends are not guaranteed.