What You'll Learn
Life Insurance Planning Using The Perfect Policy™ Concept
The Perfect Policy™ is an approach to life insurance policy selection and life insurance policy design emphasizing flexibility and control over policy premiums, optionality and convertibility of the policy based on both long and short-term goals, strategic and intentional use of policy loan features embedded in whole life insurance policies, and "target date" death benefit and cash value accumulation for both term and whole life insurance.
This method of life insurance policy selection and design facilitates a method of life insurance planning that allows any individual to build real, life-long, financial security and independence without making personal sacrifices or compromising one's long-term financial goals.
Whole life insurance policies that are designed using The Perfect Policy™ concept are always guaranteed against loss, while also giving the policyholder incredible flexibility in the amount of premium paid into the life insurance contract.
For example, unlike most rigid whole life policies, these custom life insurance policies can be designed to have both scheduled and unscheduled premiums, payable for as few as 5 years or for the life of the insured, or for any number of years in between. A cash value and death benefit goal can be set at the outset, and a "target age" selected, to accumulate a specific cash value or death benefit amount by a specific age (e.g. $1 million cash value by age 65 or $5 million death benefit by age 75).
And, if the policyholder changes their mind later, the policy can be reconfigured and premiums readjusted.
Whole life policies can also be designed for high cash value accumulation to help policyholders build, own, and have total control over a special form of "convertible credit". This credit or equity (in the form of cash value) can be used throughout the policyholder's life for major purchases or to invest in businesses. Unlike traditional forms of credit, life insurance cash values can be converted to cash savings at any time while the insured is still alive, or converted to a guaranteed monthly income (adjusted for inflation).
Additionally, a portion of the death benefit of the policy can be converted to cash savings, prior to death, to help pay for expenses incurred due to a permanent chronic or terminal illness. Finally, if a policyholder becomes disabled, they can elect to have the insurance company waive any required premiums for the term of the disability under an optional disability waiver of premium rider or temporarily suspend required premiums under the premium offset option included with every policy design.
Term life policies that are designed using The Perfect Policy™ concept are always convertible to a whole life or universal life insurance policy. Term policies are often "laddered" to achieve a desired future "target date" or immediate death benefit accumulation goal.
For example, if a policyholder has a goal of accumulating $1 million of death benefit by age 75, then a single policy can be purchased, or multiple policies can be purchased, with some being converted to permanent policies at specific ages, to achieve the desired death benefit by the "target age" of 75.
There are many differences between bad, conventional/traditional, short-term policy planning, and The Perfect Policy™ design method. These differences can be analyzed broadly as differences between poor life insurance policy design vs The Perfect Policy™ design.
The Perfect Policy™ vs Poor Life Insurance Policy Design
Poor Life Insurance Policy Design | The Perfect Policy™ Design |
|---|---|
Can only be used after you’re dead; no personal benefit while you’re alive | Generous living benefits that can be used while you’re alive; don’t have to die to use |
Low early cash value or no cash value associated with the policy | High early cash value and easy access to money when needed |
High guaranteed premiums that cannot be changed | Low guaranteed premiums with options to stop and restart payments |
Cannot be paid-in-full; premiums may be required until death | Can be converted to a paid-in-full policy, with no further premiums due; conversion is simple and straightforward |
Non-guaranteed policy values; driven by speculative assumptions | Guaranteed policy values; driven by guarantees and supplemented by stable non-guaranteed dividend payments |
Level death benefit does not grow over time | Death benefit increases every year |
Builds little or no personal credit | Builds large credit lines that will equal the sum total of all your future income |
High lapse risk | Low lapse risk |
Does not endow | Endows |
A net liability | A net asset |
Difficult for your insurance agent to manage; high risk of unfavorable outcome | Easy for your insurance agent to manage; low risk of unfavorable outcome |
Cannot be used to finance major purchases; does not contribute to future savings | Can be used to finance many large purchases; adds a substantial amount of money to one’s future savings |
Crediting rates on cash value can fall to zero | Crediting rates can never be zero |
Expenses are variable and can be increased by insurance company | Expenses are fixed and cannot be increased by insurance company |
Death benefit can only be used after you die | Death benefit can be used before you die |
Single purpose | Multipurpose |
Rigid policy design; to the extent changes are possible, it increases the risk of the policy to the policyholder | Flexible policy design; changes to policy have minimal to no negative consequences to policyholder |
Scheduled premiums that are difficult or impossible to change | Scheduled premiums that are simple and easy to change |
No unscheduled premiums or alterations to premium flow possible | Generous unscheduled premium provisions; policy changes to accommodate policyholder needs and wants |
Fixed policy payment periods that cannot be changed later | Custom policy payment periods that can be changed later through special policy provisions |
Cannot be converted to retirement income | Can easily be converted to a guaranteed lifetime income, adjusted for inflation, that you cannot outlive |
Unknown future policy value and benefit | Known future policy value and benefit |
Little or no personal benefit to you | Immense personal value to you and your family |
How The Perfect Policy™ Can Be Used In Your Financial Plan
Protecting Heirs
Protect your loved ones by purchasing basic term life insurance protection that lasts for between 1 year and 30 years, guaranteed. Compensate your heirs for the loss of your income and protect your family's standard of living after you die.
Alternatively, provide permanent, lifetime, protection through whole life insurance. Or, combine both term and whole life insurance.
Protecting Savings And Future Income
Protect your savings with a high cash value, custom whole life insurance policy. Then, build an income stream through non-guaranteed dividend payments or convert your policy's cash value to guaranteed income for life, or cash savings, or cash payments to pay for a permanent chronic, critical, or terminal illness.
Building and Maintaining Personal Credit
Build and maintain personal credit that you own and control, using life insurance. Enrich yourself and your family instead of enriching banks, credit card companies, or other lenders. Finance your own business or other investments. Take back control over your finances and make a long-term financial plan you can count on.
Funding An Estate Plan
Fund a simple, but dynamic, estate plan that protects your assets from the corrosive effects of taxation. Compensate your heirs for the loss of your income and protect your family's standard of living after you die. Create a multi-generational family dynasty and leave a legacy you can be proud of.
Life Insurance Types
Infinite Banking
Learn how infinite banking works, and how to correctly implement it in your long-term life insurance plan using The Perfect Policy™ design concept.
The Policy Design And Underwriting Process
Learn more about how the policy design and underwriting process works at Monegenix®
Results
Read client case studies and learn how The Perfect Policy™ concept is working right now in real-world scenarios...
Be Your Own Lender:
Financing Major Purchases
Learn how Madeline took back control over her credit, became her own lender, and now finances major purchases and grows her savings at the same time, without making any personal sacrifices or taking unnecessary risks.
Creating A Stable Income:
Protecting Your Nest Egg
Learn how Tim protects his nest egg from the volatility of the stock market, and sets up a stable future income stream.
Multitasking With Money:
Planning Without Sacrifice
Learn how Sandra and James are planning for their child's future education needs as well as their own retirement without making any personal sacrifices.
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