Americans saw about $11 trillion in personal wealth evaporate during the 2008 stock slump. This erased years of gains and it caused many people to call the 2000s a "lost decade."
While many were financially hurt, hundreds of thousands of people did not lose a penny. Instead, they saw their nest eggs safely and predictably grow.
These people employed the Bank On Yourself method, a financial asset that increased in value during the turbulent market. It also increased during the 1929 stock market crash and during every subsequent period of economic boom and bust. The asset is cash value life insurance.
Conventional thinking tells a potential life insurance purchaser that he or she has to die to “win” the cash payout of the policy. That is not an attractive marketing angle or a strong sales pitch for someone who wishes to enjoy the money. Some financial advisors claim that cash value life insurance policies are not a good place for savings — that the "cash value" grows too slowly. Another poor marketing and sales message for someone who is in the market for life insurance and also wants safe growth of wealth.
A specific kind of policy, however, known as Bank On Yourself, will allow a person to enjoy the cash value of insurance during his or her lifetime while also watching the asset grow.
Pamela Yellen is founder and president of Bank On Yourself. As a financial educator and consultant to financial advisors, Yellen has challenged others to find a better financial strategy. She and her husband, Larry, own 18 specially-designed policies and have watched them grow every year.
"It's been a life-changing, life-saving, financial and retirement plan saving strategy," said Yellen. "It's the only thing that saved people during the crisis."
Author of Bank On Yourself:The Life-Changing Secret to Growing and Protecting Your Financial Future, Yellen believes not all whole life policies are created equal and she recommends a specific kind of whole life insurance. She documents that the cash value of the Bank On Yourself kind of policy will grow significantly faster than the policies described by other financial advisors and experts.
It’s All about Principal Returns
Yellen believes return of principal is at least as important as return on principal. She sees her mission as spreading the word that Americans don't have to keep gambling their savings when they can use a vehicle that can provide real financial security.
The life insurance policies used for the Bank On Yourself method are dividend-paying whole life policies that, according to Yellen, contain a special rider that puts the growth of money in the policy on "legal steroids." In these policies, she said dividends can remain to purchase additional coverage while, at the same time, growing cash value most efficiently. This yields more equity, said Yellen, especially during the early years of the policy, allowing people to use it as a financial management tool from the start.
Policies are customized for each person's situation, goals and dreams. While people of all ages and means may benefit from this method, Yellen said it is not appropriate for people who can't make ends meet. However, it can be especially beneficial for families earning between $75,000 and $350,000 annually.
The Bank On Yourself website has been designed to provide consumers with a lot of information about the financial concept and it also has answers to many questions. It includes facts, figures and several free offers--a no obligation analysis of results if Bank On Yourself is added to a financial plan and a free special report on safely growing wealth.
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