It's ALL About Income Creation.
Karl Schilling
Karl Schilling is Author of Middle Class Millioniare... helping financial services professionals build 7 Figure incomes.
The following is the main reason I created the Middle Class Millionaire Plan. Read this closely and then read it again:
According to Federal Reserve survey data, 22% of assets accumulated tax-free in whole-life and universal-life policies were held by the wealthiest 1% of U.S. families in 2007—those with more than $8.4 million in net worth. More broadly, 55% of the assets in such policies were held by the wealthiest 10% of families. The bottom half by net worth held 6.5% of these assets.
Since 2007 you can bet this has simply increased. The problem is that the middle class is not educated on the real purpose of dividend paying life insurance. The wealthy have learned as have the banks and both have taken full advantage of this incredibly misunderstood unique asset. The life insurance industry has long kept the financial literacy education for the lower class and the middle class to 2 simple messages. For the lower income market the message is about burial insurance, commonly referred to as final expense. The middle class has been educated on income replacement and family continuation. Both have never heard about the real benefits of Life Insurance. (both of these messages can be provided to both of the classes)
Thus it is long overdue to simply provide the exposure to the middle class. (The lower income market could also use an increase into the concept of ordinary life insurance to provide family continuation and possibly some additional generational wealth).
The magic cure for the middle class to benefit from the depth of life insurance is the creation of income. It's not about saving more, or paying down debt, it's about creating more income. The wealthy create income. They use bsuiness development, capital structure and investment to create income which ultimately creates wealth. Asset accumulation establishes capital appreciation. Owning a business is not hard. Anyone can own a business. This idea is simply betting on yourself.
A business creates tax advantaged income, capital appreciation and a beneficial exit strategy. Properly funded life insurance contract creates tax free liquidity, tax free income and generational wealth. It additionally creates tax free liquidity for chronic, critical and termonal illness. In essence this tax free liquidity provides dollars for catastrophic health concerns. (It's your own Bank) Most people are unaware of this advantageous benefit. The wealthy are aware though.
In short life insurance can provide the very same benefits for those in the non wealthy classes. It's about financial literacy education and the creation of income. Kindly read the book to learn how to become financially independent.