If what you believed to be true turned out to be false, when would you want to find out?
Creation of the Federal Reserve and Federal Income Tax
Up until 1913, The United States had a free and independent banking system that created competition for their customers. Near the end of 1913, during the Christmas Holiday season, our nation’s banks were forever changed. A group of wealthy American and worldwide bankers met at the Rockefeller Retreat on Jekyll Island, GA, and this historic meeting produced a pure monopoly of our entire banking system. The Senate Banking Committee, under the leadership of Senator Nelson Aldridge, John D. Rockefeller’s son-in-law , convinced the Senate, along with the House of Representatives, and President Woodrow Wilson, to allow this group of wealthy bankers to form the Federal Reserve, which was actually a cartel that was not Federal and had no reserves. This action eliminated free market competition for our nation’s entire banking system, and created the Federal Income Tax.
First Mutual Life Insurance Company
Because life insurance companies were in existence in the U.S. from around 1770, they maintained their tax favored status, free from the constraints of the Federal Reserve and the Federal Income Tax. In 1840, seventy-three years before our nation’s banking system was hijacked by this group of ultra wealthy individuals, the very first mutual life insurance company, fully owned by its policy owners, was founded. This Mutual Life Insurance Company offered whole life policies with interest guaranteed on the cash value as well a dividend applied each year, that would grow, compounding in an income tax free environment. The largest and strongest mutually owned life insurance companies have had a good dividend paying history since their founding. Not too many companies or banks can claim such a legacy of strength and stability. Policyholders, who have “hitched their financial wagons” to these great financial bastions of strength, have truly slept well at night, and never worried about their money’s safety.
Term Insurance actually began in 1688 in London, England offering coverage for a ship’s cargo for only a term of time until the cargo arrived safely at its destination. This became the world’s first property and casualty insurance. Term Life Insurance came into existence later and covered an individual’s life for a term of time, generally from one year to twenty years.
Removal of the Gold Standard Backing U.S. Money Supply
The Gold Standard, which had always backed the nation’s money supply, holding inflation in check, was removed in 1971, and the Federal Reserve printing press ran non-stop thereafter. Higher interest rates ensued and the greed arrived at the life insurance industry around 1980. The major mutual life insurance companies did not join the bandwagon. The smaller and less strong life insurance companies got on the bandwagon of universal life thinking that they would be made extinct if they didn’t join. After only about six years of the new universal life craze, some mid-size and mostly smaller companies sold out their Universal Life book of business because they were losing profits. Assuming Companies were found by the state board of insurance in their home state, and all policies were transferred to the new company just the same as the original policy. All policyholders lost nothing in the transfer.
Several years later a second phase of Universal Life came out with guarantees under certain conditions that there would be a no lapse death benefit if the policy ran out of cash value. However, if the premium was late for any reason including even the bank changing its routing number, the policy could lose its guaranteed no lapse feature because there was no cash in the policy cash value with which to pay the late premium. These policies are often created like a permanent term plan, but after 8-15 years, these policies will run out of cash value. Losing the no lapse feature greatly shortens the years of coverage which should last to age 120.
The moral to the universal life policies and their past and future failings can be compared to building a product that will not hold up under intense pressure like whole life insurance has. When you build a levy with half measures, the result is a weak levy that allows a huge hurricane like Katrina to take out the levy protecting the city of New Orleans.
Dividend Paying Whole Life Insurance
The Dividend Paying Mutually Owned Whole Life Insurance policy is still the most amazing financial tool on the entire earth. Many whole life policy owners have, either partially or completely, seceded from the banking system that has been taking their money and turning it into assets for the bank. Whole life insurance performs most banking functions which makes the policy owner rich rather than making the bank rich. If managed correctly, all functions of whole life insurance: banking, policy loans, income, and the death of the insured are completely income tax free. There is so much more to know about. Check with Nancy at 817-239-6441, or at unboundmoney.com, to begin learning. Nancy can show you how to turn your liabilities into assets.
Whole Life Insurance has no term life insurance in it. A medical exam is often required to become insured. An individual can own whole life insurance on any eligible person, such as a spouse, a son, a daughter, a business partner, or even grandchildren! Whole life insurance policies build cash value and earn dividends; however, dividends are not guaranteed. If whole life insurance companies did not pay dividends, our country would probably be having the worst national financial crisis ever. The interest is guaranteed, and all of the current and past annual dividends are guaranteed. Whole Life Insurance is guaranteed for the long term to the insured’s death or to age 120. Whole life insurance allows you to finance any “can’t miss deal” that you want to invest in. You, the policy owner, are the loan officer who can say “yes” or “no” to yourself! When you are in charge of paying yourself back, it is amazing how “choosey” you become!
Your Life Insurance Agent has a Group 1 license in any state where he/she does business. Group 1 agents do not sell securities; therefore a Group 1 agent is not a financial advisor.
The policy owner pays premiums for the insurance policies which can be set up to be conveniently paid monthly, quarterly, semi-annually, or annually.
Other Insurance Products and Services
Nancy has other insurance products and services including term life insurance, Key Person Life Insurance for individuals or corporations, Disability Income Insurance, Long Term Care Insurance, Fixed Annuities, and Medicare Supplements.