This May Seem Like A Lot Of Negatives: It’s Not

Start with the obvious.

  • Sellers aren’t stupid, and neither are consumers.

  • Sellers can very very easily replicate their competitors.

  • The pros are powerful (tax-free accretion of the cash value, and you can withdraw it, tax-free, as long as the total amount does not exceed the premiums paid, a detail not well-explained to others).

  • The negatives are understated because identifying the policies that can actually execute this strategy has, and will change. The most-fitting plan to enact this strategy will vary over time, and the sellers are not going to send you a memo to explain the how and why this has occurred.

  • Some ‘might’ compare this with a Roth IRA. Nah, Roth IRA doesn’t offer the option-like payout if you are hit by a drunk driver while getting the mail.

The solutions are subtle and also largely unmentioned.

  • The books, the videos that attempt to describe this on YouTube, etc, don’t do a very good job of explaining that it is the proper allocation (the mix) that matters.

  • The way to do this? Work backwards (nerdy people call this recursively), and then see if it fits other elements of your financial picture. This will be an ongoing theme. Work backwards, and at that point, you can see if you can afford the premium, in order to “find the correct amount” of insurance or premiums that you would like to pay, in order to enact this, or any strategy.