How To Use Cash Value Of Whole Life Insurance - YouTube

What's up ninja? Kris Krohn here. And recently, I got a question. Someone said,

"Hey, how do I actually leverage the cash value in my life insurance policy?" And I

thought, "You know what? I'll answer that question because I do that all the time."

For business I use it to fund my real estate investments. So today, I'm going to

show you the ins and outs of how you tap into cash value to use it purposefully.

So, in case you've forgotten, just a little bit of a reminder. When you set up

a whole life insurance policy, it's not a term policy with the death benefit. Whole

life insurance has a death benefit and a living benefit. Which means every month

that you write that check, a little bit goes towards the death benefit. The rest

of it goes towards building up cash value that you can access. Now, it's a

very smart strategic bank. What I love about whole life insurance is that I'm

generally earning dividends of 5% on my money when it's sitting in there. And

sometimes more than that. Which is fantastic because it's not going to get

me rich but I feel way more responsible than letting my money sit in the bank.

You get my meaning earning half of nothing percent? The second thing is my

money is untouchable when it's in there. Which mean it is the only unlegatable

policy on the plans. The only place you can put money where no one can touch

it. Government can't touch it. No one else can touch it either. So, I like that. Third,

most importantly, is that I get all these awesome tax benefits. Which means I get

to grow my money tax-free in there. So when I pull it out, here's how you do it.

You call up the custodian, the person that you have the account with. For my

guy, just shoot him to tax. I'm like, "Hey, send me a check for 30 grand. Send me a

check for 200 grand." Whatever it is. And he'll generally say 1 or 2 things.

He'll either say, "Kris, would you like me to send it in snail mail and take 10

days? Or do you want me to have it wired to you?" It's up to you how you want to do

it. It's not the most convenient Bank because I make a phone call and then the

money gets sent to me. But that works just fine for me. Now, the money is

sitting in my account and now I can use it to support a business. Start a

business, invest in real estate and do real smart maneuvers. I came out of 5%. So

now I'm looking to do like in my real estate earn 20% or maybe it's 25%. When

I'm done with my real estate and I pull it back out, guess what I'm going to do?

I'm going to pay my policy right back. Fill it right back up. And now, I've built a

shelter because all my money sitting in there is growing tax-free again. Isn't

that awesome? It's fantastic. So, let me give you kind of

a real-world example. So, I recently did a deal. And I short-term needed to show

$100,000. And so in my policy, I texted my buddy Guerin. And I

said, "Buddy, I need 100 grand." 2 days later, the money was sitting there. I

used it. And for this situation I just needed to prove

collateral. The collateral was to basically show good faith on another

project that I was doing. Once they saw that I was 100,000 liquid in

the bank versus my policy, they gave me the thumbs up.

I took the 100 grand. I popped it right back in my account. And it had

served its purpose. Now, I got to tell you right now, I love whole life insurance.

But most insurance carriers... And more importantly, most insurance agents, they

don't know how to set up these policies the right way. It's kind of a travesty.

Because if you want to be able to put money in and take it out, the insurance

company will pay very low Commission on that. So, your insurance buddy

unfortunately is usually incentivized to say, "Let's do the policy this way and

then it may be 4 or 5 years or 8 years you can pull some money out

of it." Because they really don't want you to touch it. That's what allows them to

have a much higher commission. In the end, it's important for you to access your

money. A whole life insurance policy is a really smart better than a normal bank

account. And I use mine as a bank account to support all of my business, all of my

investments. And you know what? That's also where I put my sleep well at night

money. So, if there was a rainy day, if something bad were to happen, that's

where I store that money that I can pull out and actually access it super, super

easy. So friends, I hope that's helpful for you in understanding whole life

insurance and understanding how to leverage cash value. If you don't know

what it is, all you have to do is call up your carrier and say, "How much in cash

value do I have?" Or if you're thinking about starting a policy, what you really

need to do and even if you have an old policy. And they don't let you take very

much of it out. Over the last decade, I've only found 3 people I implicitly

trust. To set up and design the right policy to support my investing. And I got

a list of them in the link below. So, if you click it, it'll direct you to my most

trusted group that will actually set that up for you and they'll do a

fantastic job doing it. And then you can be like me. Smarter, more sophisticated,

saving your money, earning greater returns on your money and protecting

your money. All the things that a smart investor and a smart human being is

actually looking for. Best wishes. Hey, I hope you enjoyed watching today's

video. I made it just for you. and most of these videos I make are based on your

comments. So, if there's a video you haven't seen on my channel out of the

hundreds and hundreds and hundreds and hundreds of videos, then comment on it

below. It gives me ideas to let me and my team know

want to make videos on that will best to support you. Bottom line is we're here to

help you become financially free. A couple last things for you to think

about. I've got all sorts of free tools if you go to my website kriskrohn.com

so you can get free copies of my books. Or you can you know grab free

calculators on how to build wealth and when you're gonna retire. You can, you

know, do free break through with me and my break throughout. Or most importantly,

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long. And what I'm doing is I'm training you to think like a multi-millionaire.

Frankly, I'm teaching I think like a billionaire. They think different, they

process different. I'm going to teach you how to be much happier human being along

the way. So hopefully we get a chance to enjoy that experience together. Thanks

for watching today's video. Do subscribe and I'll see you tomorrow.