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How to Reframe the Way You Look at Life Insurance
How you can double-dip with the use of tax-exempt life insurance
“You don’t buy life insurance because you are going to die, but because those you love are going to live.” — Unknown author
While the perception of the insurance industry is getting better each year, the industry still has a serious public relations problem.
If you are an insurance agent, have you ever been asked what you do for a living and found yourself hesitating before answering because you suspect that mentioning that you are an insurance agent may be a conversation stopper?
Why is that the general public now views insurance professionals as negatively as other alleged bottom feeders: bankers, lawyers, politicians, real estate agents, and now journalists? It’s generally because of the common complaints about the industry such as:
Insurers don’t pay claims (as a result of exclusions in the fine print).
Insurers raise premiums after an auto accident (involving policyholders with previously unblemished records).
Insurance agents are too aggressive in pushing for sales, like a car salesman.
And the list goes on and on…
As a result of these perceptions, many now consider insurance as a necessary evil. An expense that cannot be avoided because in some cases it is mandated or required. For example, if you drive a car, you’re required to have insurance. If you own a home with a mortgage, the bank requires you to have insurance. So beyond these required insurance products, many don’t purchase additional insurance. Many don’t educate themselves on the benefits of these products.
It is time to start reframing the way you look at insurance. Rather than viewing insurance as the necessary evil, you have to start looking at insurance as a product for wealth creation.
In my new book, Tax-Efficient Wealth, I discuss tax-exempt life insurance as one of the tax-efficient tools for building and accelerating your wealth.
Of the four tax-free options that the Canadian tax law permits, the use of tax-exempt life insurance is one of the least known tax strategies. You’re…
