Many people make the assumption that permanent life insurance is expensive or “a bad deal.” Meanwhile, they hunt for CD rates that don’t start with a decimal point for their private reserve and savings funds. We remind our clients to “do what banks do, not what they say.” Using public information, this video examines major bank balance sheets to show how they park multiple millions of dollars of their cash reserves into permanent life insurance products.
We then go deeper to explore why banks would invest in life insurance. Like many consumers and small businesses, banks want a decent growth rate on their safe money. They also want tax-deferred growth and easy tax-free access to their growth. Last, they want protection on their most valuable asset- their human capital. If any of the main earners were to pass away, they want an immediate multiplier effect on their money to make up for the lost earner. Permanent life insurance is the only financial product that can simultaneously provide all these benefits, and do so much more effectively than buying term and saving the difference. The proof is in the factual research provided in this video.