Smoking Will Cost You 6+ Million Dollars!

Last week I took my daughter to the mall. While walking in, she saw someone she knew from school and he was smoking. My daughter said, "Dad, that's gross!". I then replied, "That will probably cost him over a million dollars, too!". Today I wanted to run an Indexed Universal Life (IUL) Illustration just to see what this seemingly small amount of money each day would really cost a person in lost potential income gains.


The boy we saw was 16 years of age. If you use a cost per pack of cigarettes of $7.50 and assume a pack-a-day habit, you will spend $2,737.50 in one year or $228.12 per month on your habit.   If you were to invest $228.12 per month into an IUL from age 16 to age 65, you would be able to draw $183,766 per year, TAX-FREE, from age 65 to age 100! All of this without your money being at risk, like a 401K or IRA and then having to pay the IRS tax on your money. This investment also provides your loved ones with a TAX-FREE death benefit!


The assumptions used in this Illustration, are as follows:

• 20 Year Backcast of the S&P 500 with an average rate of return of 8.10%.
• Top 5 of the 7 Indexing Strategies used to provide diversification.
• Increasing Death Benefit Option used to Age 65 and Level from 65 to 100.
• Minimum Death benefit selected to increase cash accumulation.
• Premiums stop at age 65, as account will be fully funded.
• Withdrawls taken from age 65 to 100.

Illustration

This is a perfect example of how small, consistent actions can compound into something huge over time! Insurance companies don't advertise anything flashy, but what they offer are risk averse products that consistently perform, year after year.



Michael Pfeil

Family First Life
mpfeil@FamilyFirstLifeMD.com

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Companies Started or Saved By Life Insurance

High Cash Value Life Insurance

High Cash Value Life Insurance is one of the most under utilized investment vehicles, used today. With people like Suze Orman and Dave Ramsey telling everyone how terrible this product is and that no one should buy it, it's no wonder this product is so misunderstood. All financial products have their place, each for a specific situation. For anyone to have a one size fits all solution is incomprehensible. With the insurance industry being such a highly regulated industry, they would have discontinued offering the product, long ago.

If High Cash Value Life Insurance did not exist, the landscape of American business would look very different today. Below are a few famous companies that were either started or saved by Life Insurance.

Stanford University

Leland Stanford was the company's first president in 1868. He died in 1893 at which time the university fell upon difficult times financially. His wife, Jane L. Stanford, tried unsuccessfully, to raise the necessary capital to avoid a temporary closure of the school. She was, however, able to use the proceeds from her husband's Life Insurance policy to continue funding operations and to keep the school open.

Disneyland

Before Disneyland there was Walt Disney Studios, founded in 1923 in Los Angeles, CA. Eventually, Walt wanted something more and began to dream of opening an amusement park. Achieving traditional forms of financing proved to be difficult, so Walt decided to provide his own financing. In 1955 Disneyland was opened, in large part to his Life Insurance. He mortgaged everything he had, including his High Cash Value Life Insurance policies to fund the $17 million dollar venture.

JC Penney

James Cash Penney started working at a Golden Rule Store in 1898. He was eventually offered a partnership with the original owners. By 1907, the partnership was dissolved and and Penney purchased complete ownership of all three stores. Following the stock market crash of 1929 and the Great Depression, Penney found himself unable to meet payroll and day-to-day expenses. He was able to borrow from his two Life Insurance polices to help the company weather the storm.

McDonalds

In 1955, Ray Kroc decided to buyout his then partners Richard and Maurice McDonald. During the first eight years, Kroc did not take a salary. He had to overcome ongoing cash-flow issues and payroll expenses. He was able to borrower from two of his Life Insurance policies, in addition to borrowing money from his bank.

Foster Farms

Max and Verda Foster started Foster farms in 1939. They were able to do so with a $1,000 that was borrowed from their Life Insurance. They made an investment in an 80-acre farm close by Modesto, CA. They started out raising turkeys and then eventually, chickens. They now have over 10,000 employees and their products are sold globally.

The Pampered Chef

In 2002, The Pampered Chef was acquired by Berkshire Hathaway Corporation for $1.5 billion. Today the company has over 12 million customers. All of this started from $3,000 that Doris Christopher borrowed from her Life Insurance policy. She was able to use the cash to start the business from her suburban Chicago home in 1980.

To Learn More About High Cash Value Life Insurance, Call Family First Life Today!

(844) 298-7027

www.FamilyFirstLifeMD.com

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