Bill Black: Life Insurance Facts You Need to Know Now

In this episode, The Annuity Man and Bill Black discuss:  The problem with indexed policies that agents don't often talk about  Backtested numbers in the life insurance side  Insurance is not an investment  How do hybrid life insurance policies work    Key Takeaways:  An indexed policy is a loan, which is supposedly non-taxable. However, people aren't told that interest is being paid out of the cash value of the policy and when it gets overwhelmed, the policy collapses under its own weight and becomes a forgiven loan. Forgiven loans are taxable as ordinary income in the year of that forgiveness.  When buying an indexed policy whether in life insurance or in an annuity, it's best to get experts involved in the process. Don't swallow the pitch, don't trust backtested numbers. Trust experts who will inform you of both the limitations and benefits of a policy.  Life insurance is not necessarily an investment. When you buy retail policies, you buy them for risk coverage and liquidity. Consider the policies where you can pay the smallest amount of premium possible while getting the most coverage.  If you buy a life insurance policy with a survivor benefit and you end up not using your available long-term care coverage, your beneficiary gets the survivors benefit.    "Historical returns have nothing to do with future expectations." —  Bill Black   Connect with Bill Black: Website: http://www.whbco.com/ LinkedIn: https://www.linkedin.com/in/whblack/    Connect with The Annuity Man:  Website: http://theannuityman.com/  Email: [email protected]  Book: Owner's Manuals: https://www.stantheannuityman.com/how-do-annuities-work YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g  Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!