• Berry Financial Group

Why You Need a Max Funded Life Insurance Policy in Your Portfolio

Updated: Jul 30

Life insurance is so much more than a monthly premium payment you pay to provide a guarantee that your family will receive a lump sum of money should you pass away during the policy period. With life insurance, you can design a comprehensive plan that can act as an investment vehicle AND legacy play for your family and future generations.


In this article, we are going to discuss the reasons why you should consider adding a max funded life insurance policy to your retirement portfolio.


1. Taxes

Tax rates were over 90% after WWII and over 70% throughout the 70’s. The highest marginal rate is 37% today. With TRILLIONS of dollars being thrown into the economy, with debts well into the $20 TRILLIONS of dollars. Do you believe tax rates will GO UP in the future?


If so, you need to pay taxes TODAY on the seed (small portion) and create a harvest (big portion) that comes out TAX FREE in the future. Most people LOSE their BIG DEDUCTIONS in retirement, which is why taxes alone are typically HIGHER in retirement.


With a Max Funded Life Insurance policy you can set up plans to avoid paying taxes.


2. Liquidity

Access to cash is one of the MOST IMPORTANT attributes when you look at where you are putting your money. Imagine you are paying extra towards your MORTGAGE (like most people try - and do and it could be a great strategy, but definitely comes with downfalls) and that’s all your doing for savings.


After a few years of doing this, what happens if you lose your job like we have seen $20 million people do during the COVID-19? You can’t run out and get that money from your mortgage.


What if a couple months later when you continue to fall behind on the mortgage, the bank FORECLOSES on your home? What if that extra savings didn’t go to your home, but to a Max Funded Life Insurance account that would give you access to continue to fund bills until you can get your job back on track?


With a Max Funded Life Insurance policy you can create liquidity opportunities.


3. Safety

It’s very important to have a portion of your portfolio that is safe and secure. The foundation needs to be safe and secure, so when events like COVID-19 come along, it’ll have no short term affect on your financial situation because you know a portion of your money is 100% totally secure giving you peace of mind.


How much of your portfolio should you have secure? However much you want! I personally want a ton of my money in safe positions. With the market always volatile, what if you could get SOME of the MARKET UPSIDE with a GUARANTEE you CAN’T LOSE on the DOWNSIDE?


With a Max Funded Life Insurance policy you can create a secure place to invest your money.


4. Rate of Return

When saving money, you definitely need to give yourself opportunity to earn more than a bank account. Savings are paying well less than 1%, which isn’t even close to keeping up with inflation. Even though your bank account is safe, you could say it is losing money due to inflation.


The Max Funded Life Insurance policies will typically earn 4-7% with TAX ADVANTAGES. That means you would have to earn over 7-9% to net what the Life Insurance is doing.


The other difference? Compounded Growth. When you grow your money with no loss, you get the benefit of compounding growth. If you earn 50% one year and then lose 75% the next, you WIPE OUT all PRIOR GAIN, and then LOSE the TIME it took to get the gain. Compounded Growth is KEY


.With a Max Funded Life Insurance policy you can create a growth opportunities far exceeding a savings account.


5. Death Benefit

This is an added BONUS. If you have a family, this will be very attractive to you. Due to the TAMRA, DEFRA, and TEFRA tax laws, the GOVERNMENT is making you have a life insurance benefit attached to the Max Funded Life Insurance to get the TAX FREE growth.


That’s not a bad thing though, that’s actually a GREAT THING if you love your family. If you live long enough, the LIVING BENEFITS of Tax Free Income, Liquidity, Safety, and Rates of Return will benefit YOU, but if you DIE TOO SOON, the account blossoms for your FAMILY.


With a Max Funded Life Insurance policy you can will receive a death benefit.


There are no perfect products, but we do believe you can accomplish perfect planning. Is a Max Funded Life Insurance policy right for you?


Answer these questions and answer YES or NO.


1. Do you think Tax Rates will go up?

If so, would you rather pay taxes now at LOW RATES and then get money out TAX FREE in the future?


2. Do you want Liquidity?

Most retirement plans don’t allow you to touch your money before you turn 59.5 years of age without a penalty. That is a long time and a lot can happen in the mean time that you need liquidity.


3. Do you want Safety?

If you want to know a portion of your portfolio has NO EXPOSURE to the stock market volatility, real estate market, or any business risk, then you will love the Life Insurance Retirement Plan.


4. Do you want solid Rates of Return?

If you want the opportunity to earn based on the stock market upside with no downside exposure which will give you sound rates of return to help keep up with inflation, this could be perfect for you.


5. Do you want to Protect your Family Financially?

If you love your family and want to make sure they are taken care of financially if the Good Lord calls you home too early, then Life Insurance is by far the best strategy to do that.


Did you answer YES for all five questions? If so, schedule a no obligation meeting to learn more if this is a good option for you.


Click HERE or call 843-808-9850 to schedule a meeting.


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BERRY FINANCIAL GROUP
MYRTLE BEACH, SC

4226 Mayfair Street 

Myrtle Beach, SC 29577

 

PHONE: 1.888.774.6181

FAX: 1.843.774.6191

NC DEPARTMENT OF INSURANCE
NCDOI Divisions, Services for Consumers, Company License Status: Berry Financial Group

Agent License Status: Richard Berry

SC DEPARTMENT OF INSURANCE
Agency Code: 142256
Individual: 154176

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Investment advisory and financial planning services are offered through Alphastar Capital Management LLC (“Alphastar”), a SEC registered investment adviser. Berry Financial Group and Alphastar Capital Management, LLC are separate and independent entities. The firm only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. Berry Financial Group offers insurance products through individuals licensed to sell insurance. Comments regarding guaranteed returns or income streams refer only to fixed insurance products offered by Berry Financial Group and, unless specifically stated, do not refer in any way to securities or investment advisory products offered by Alphastar. Fixed insurance and annuity product guarantees are subject to the claims paying ability of the issuing company and are not offered or guaranteed by Alphastar.

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