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Perpetual Uninterrupted Compound Interest For Your Life Insurance Clients | Selling Life & Annuities - YouTube
Channel: Gordon Marketing
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hey everybody it's randy pearson vice
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president of life and annuities for
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gordon marketing and today i'm sitting
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here with our
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manager of the your family bank program
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our most successful life insurance
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selling program here at board marketing
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and today we're going to be talking
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about the subject of
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perpetual uninterrupted compound
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interest
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in life insurance stay tuned
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[Music]
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all right paul long
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big words fairly complicated sounding
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subject for today's video perpetual
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uninterrupted
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compound interest what are we talking
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about today well what we're really
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talking about randy
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is the bedrock fundamental of
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what makes the whole your family bank
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concept work
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and what makes cash value life insurance
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be it an iul or a whole life
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product structure work as well because
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without that we wouldn't be able to have
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the kind of magic that we do
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so um you know getting into it it's
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simple as simple as this we pay a
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premium into a policy
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and that premium goes to part of it to
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the cost of insurance the death benefit
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okay and the rest is going to the cash
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part of the policy
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okay now think of it as stepping on a
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balloon we can put our foot on that
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balloon
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either at the death benefit end or the
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cash end and as i suppress the one
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end the other end blows up so i can i
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can have no cash in that policy
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i haven't have all death benefit right
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or i can suppress the death benefit down
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to the minimum
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to increase the cash part of the policy
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right excellent so as a
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banking concept or as as a
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efficiency structure for the banking
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concept or savings structure
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we want to minimize the death benefit
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increase the cash
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okay but as that cash goes in with more
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premium every month
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and the principal is earning interest
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and the interest begins earning interest
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right and that continues to grow
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at some point we want to pull money out
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of that policy right
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either through a loan or a withdrawal
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but the beauty of it is this
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when we take the money out of the policy
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it doesn't actually come out of the cash
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account
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it comes as a loan against the death
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benefit
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and that's where most consumers and most
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agents even get
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a little bit confused so let's let's so
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the policy is collateralizing the loan
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correct so think of it this way in every
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other situation
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where i'm going to accumulate money and
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then borrow it
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okay think of think of a big cookie jar
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sitting here and
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every week you came home you threw your
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paycheck into that cookie jar
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that could be also be a schwab account
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it could be a bank account it could be a
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money market it kind of could be
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anything but
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what we're always doing in those
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situations is we're
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funding it into that bank and or that
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account and then we're borrowing from
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the account to go spend right
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right okay so it's money in but it's
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money back out of that same account
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right what if i told you no
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keep keep accumulating your paycheck in
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that cookie jar
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but instead of you spending from that
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account i told you to borrow somebody
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else's money at a lower cost
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than a continuous compound interest
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you're earning over here
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okay so so that this
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cookie jar would grow ever and ever
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bigger and bigger and that's why they
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call it infinite banking yeah okay
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because it's getting bigger and bigger
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all the time it's earning more and more
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interest
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okay and the money i'm borrowing over
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here is a decreasing account
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at a lesser cost than i'm earning over
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here that's the magic that's the
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perpetual
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uninterrupted compound interest because
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this account over here is never going
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down
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yeah and it and it never ceases to amaze
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me that um
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most advisors that may be very
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intelligent
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very life insurance iq intelligent have
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never really gotten that concept
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right they they have not grasped the
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idea
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of how that dynamic works but what i
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find really fantastic about the your
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family bank program
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is the fact that we utilize that concept
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to
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provide you know cash to the consumer to
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accomplish objectives
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but in this in this program the your
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family bank program
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we're accomplishing one of the most
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important objectives that consumers
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want to want to address and that is
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paying off debt
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right i mean paying off debt and so you
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know in this scenario
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uh i think that that alone right taking
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a complex subject matter
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and turning it into a simple idea that
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we can get you out of debt
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much sooner than if you were to utilize
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the
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the payment methodologies provided by
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the creditors right so
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so for those that aren't familiar with
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your family bank program
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uh why don't you give the agents an idea
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of what kind of time frames
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that utilizing a well-funded in this
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case whole life policy
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we can pay off some of that consumer
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debt well what we what we report to our
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agents
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uh that are get involved in the program
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is that on
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average we can get all their debts gone
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in nine years or less that's on average
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so you're going to have some that are
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gone
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in five to six years you're gonna have
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some that might take 12-13 years
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but on average we're able to eliminate
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all their debt including student loans
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mortgage all the big ones in nine years
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most of the time the consumer debt
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meaning everything but the
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mortgage maybe is all gone in two to
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three years at the very most some
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sometimes less than two years yeah so it
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can have an immediate impact okay so
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so go back to that cookie jar analysis
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again for a second
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doing where in an account where we're
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spending from the account
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you know which is kind of the dave
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ramsey solution right
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sure we are able to get out of debt okay
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but when we're out of debt
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other than the freedom cash flow and not
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being in debt anymore i don't have an
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asset anymore because i spent
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from the asset in order to pay the debt
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off right and the your family bank
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methodology however
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not only do we have the debt eliminated
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and the cash flow freed up but i have an
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asset to show for it as well
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because that compound interest and that
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growth was never interrupted and taken
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away
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yeah so we're running out of time here
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but let's
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quickly address one of the biggest
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questions that i get when i'm chatting
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with agents
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about the yfb program and utilizing a
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life insurance policy as this
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accumulation and distribution vehicle
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what about taxes real quickly what are
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the tax implications
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for consumers utilizing this strategy
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well that's one of the beauties of using
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life insurance the very first thing that
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life insurance should be your first go
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to as an option is it multiplies your
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estate right away right
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if i put x number of dollars in i have
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five times x in terms of death benefit
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should the the inevitable although not
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imminent maybe inevitable is going to
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happen to all of us right
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okay but the other thing is all the
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interest growth
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that's accumulating on the way grows tax
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deferred
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and if we take it out as a loan because
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loans are not
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taxed the loans come out tax free as
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well so we beat uncle sam all the way
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around the horn there you go
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there you go and anytime we can beat
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uncle sam we're all about that
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so agents out there if you want to learn
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more
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about the your family bank program in
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general or
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the more technical uses of life
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insurance
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in helping meet consumers objectives you
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need to reach out to paul bechdel he's
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one of our top
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rvp's here at gourd marketing he's
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always available to talk to agents to
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help you grow your business
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but with that we got to call this
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episode of selling life and annuities to
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an
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end i would encourage you to please
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click subscribe underneath this video
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and also that notification bell so when
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we come out with a new video every
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tuesday
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you'll be notified you can watch and we
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can help you grow your life in annuity
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sales
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with that i'm randy pearson this is paul
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bechtel thank you for watching we'll see
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you next tuesday
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you
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