“From My Front Porch You Can See the Sea”

Remember George Strait’s song, “Ocean Front Property” and how from his front porch in Arizona, you can see the sea?  Released in 1987 it became the song of the year and is still a favorite country single.  The great appeal of this song is that everyone can relate.  Everyone has been “sold” or at least been “hit on” at least once in life.  And so as George croons out the words to this song and how he is going to “Throw in the Golden Gate free,” we all snicker, and possibly even squirm, because we know exactly what he is singing about.

Sometimes I hear, “This sounds too good to be true.”  And to be quite frank with you, I cringe when I hear those words, because what George Strait so poetically sang about in “Ocean Front Property”, is so brutally straightforward.  But the fact is, what we do and what we share is NOT “Too Good to Be True”.  We only share facts…aka, the unassuming, unpretentious and unadulterated truth. Inexcusably however, few people really grasp this truth because they are too busy chasing what really is “Too Good to Be True”, completely unawares.   Yes, pitifully, they are busy pursuing the average rate of return, because they really hope to acquire that ocean front property in Arizona and they actually believe the Golden Gate will be thrown in for free when they do.

But it really isn’t their fault because, the financial sector is always coming up with the latest “Golden Gate.”  You see, “The financial sector seems to prosper in direct proportion to the volume of the devilish, convoluted instruments that it creates—immensely profitable for their creators, but destructive to the wealth of those who purchase them.”[i]  And this newest devilish, convoluted instrument in the life insurance industry happens to be none other than Indexed Universal Life Insurance products.  Why?  Because “Index funds face the same challenges that all investment strategies face.”[ii] When stock prices lose touch with reality (i.e., real intrinsic value) a huge gap develops and it is only “a matter of time until reality prevails.”[iii]

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But what about the guarantees provided in Index Universal Life products?  This is a questions one should be asking…and not just of the sales agent or company that sells these products.  Instead, you need to be asking someone who knows and can interpret those guarantees for you because those guarantees DO NOT guarantee you, that you WON’T lose your money.  The only thing an Indexed Universal Life contract guarantees you is that you will be credited a 1% or 2% average rate of return.  That return could be an average rate of return for 1 year, 5 years or even more, while the premium fee you pay annually might be a fixed 6%, leaving you actually losing money and the insurance company earning an actual rate of return off you.

Interestingly enough, Participating Whole Life is the only consumer demanded product that insurance companies sell today.

You see, consumers wanted and demanded a product which would guarantee an actual return, not an average return, on their premiums paid.  Consumers didn’t, and still don’t, want to face the uncertainty of losing their money as they pay more and more into their life insurance policy.  Furthermore, consumers really don’t want to find out when they are late in life that all the money they paid for their insurance (premiums) has gone to pay management fees, policy fees, interest and penalties while the cost of their insurance has continued to rise and is now too expensive for them to affordably and comfortably pay.

Participating Whole Life Insurance avoids all those unnecessary concerns and costs.  In fact, most Participating Whole Life Insurance contracts can be engineered to overcome the total cost of the insurance between years 8 and 10.  After that the policy becomes a cash machine that always provides you, the owner, with more cash liquidity than what you have paid for your policy.  And if you continue to pay the premium out of pocket, your face value will continue to grow as well…guaranteed.

This is NOT “Too Good to True.”  It is a fact.  Additionally, it happens to be something that consumers have been demanding of Insurance Companies for over 100 years.

At McFie Insurance, we don’t “sell” anybody on anything; we simple share the truth.  And we don’t need to “Throw in the Golden Gate free” because people see the intrinsic value of what we have to offer.  We don’t offer you some devilish, convoluted “pie in the sky” product that will be immensely profitable for the insurance companies and the agent that sells such products, because we understand how unequivocally destructive to your own wealth that would be.  Finally, we only offer to you what we ourselves own and have used to build, control and own more assets.

When you understand the value of owning and using participating whole life insurance as a powerful financial tool, you’ll feel like your Life Insurance was thrown in for free.  Call our office now 702-660-7000 to find out how.

Dr. Tomas P. McFie

Most Americans depend on Social Security for retirement income. Even when people think they’re saving money, taxes, fees, investment losses and market volatility take most of their money away. Tom McFie is the founder of McFie Insurance which helps people keep more of the money they make, so they can have financial peace of mind. His latest book, A Biblical Guide to Personal Finance, can be purchased here. 

[i] Don’t Count On It, John Bogle, page 3

[ii] Ibid

[iii] Ibid