Powerful Life Insurance Secrets of the Wealthy: How You Can Use Them to Build Wealth
High-net-worth Individuals work hard to build their wealth, and even though they can afford to vacation around the world and buy anything their hearts desire, they (more often than not) believe in being down to earth and looking for the best deal, just like anyone else. Take the example of Walmart founder, Sam Walton. What most people don’t know is that he drove a pickup truck till the very end of his days!
Surprisingly, a lot of wealthy people are humble in their ways, and this helps them to retain the wealth they have accumulated over the course of their lives. Humility is not the only secret of course, since they use financial tools such as various life insurance types as well as wealth creation tools, to help them conquer enormous assets and retain them well.
Top 3 Life Insurance Secrets of Affluent Investors
It’s very interesting to learn about how affluent individuals earn and retain their wealth, and if one spends enough time to understand their lifestyle, it’s quite easy to see how the wealthy manage to build and maintain their assets. Insurance plays a major role, in more than one way.
We’ll uncover three life insurance secrets that wealthy individuals put to good use, so you can use them for your own financial benefit too!
The 1st Secret – Life Insurance is Key, Even If It Seems You Don’t Need It
Wealthy individuals understand that life insurance is not only for individuals who live on a fixed monthly income. They understand the real benefits that a life insurance policy has to offer, and how they can use these benefits to their advantage:
- Liquidity – Wealthy people use the right life insurance types as a failsafe, for they want liquidity in terms of funds available to their loved ones in case something happens to them, or if they need access to money in a hurry.
- Income Replacement – Rich people invest in a life insurance policy as a sure-shot income replacement scheme, which presents loved ones and other dependents (like their business) with money to tackle expenses and other issues that may come up in case of their untimely death.
- Wealth Transfer – Life insurance helps high net worth individuals to transfer the wealth they have accumulated over their life to their loved ones, with ease. They understand that this is one of the key factors that makes life insurance a viable investment.
The 2nd Secret – Life Insurance Plays a Huge Role in Future Planning
For wealthy individuals, life insurance works like a charm to help them hedge against the known’s and unknowns in life. All their financial plans for the future include a life insurance policy that helps pay off the large amounts of estate tax that generally accumulates for wealthy people. It also helps them lower the burden of inheritance tax for beneficiaries.
Of course, a business that runs successfully typically depends on someone at its head, too, which makes it a huge responsibility for owners. If that key person (or persons) were no longer in the picture, the business would stand to suffer. Hence, a key person policy is often essential for successful business owners, helping a great deal in an unforeseen situation.
The 3rd Secret – Wealthy People Never Stop Trying to Make and Keep Money
The wealthy are considered wise, if only for their strife to make and maintain money, as well as tangible assets that play the same role. One of the most important secrets of the wealthy is that they consider life insurance an asset, not a mere investment for the sake of financial safety.
Whether you invest in whole life or term life insurance, practically every life insurance policy has a life settlement option (where it can be sold off for an immediate cash payout in the market, by not only a wealthy person but also a senior citizen or just about any baby boomer) for a precise cash value.
Looking at the secrets of wealthy and wise HNIs can be consolation, if not wisdom too, for those looking to make investment decisions for a vibrant future. At LifeCentra, we can help you gain and retain money by employing the same financial tools as the wealthy do. Get in touch with us today to discuss the best ways to build and shield your personal fortune, as well as save for a financially comfortable retirement!