- All
- Featured
- Flexmethod FAQ's
- Life Insurance Principles
- Policy Terminology
- Term Life
- Underwriting Health Exam
- Whole Life
- Why Life Insurance
Featured
Is there a minimum investment amount needed?
Every situation is different; but we generally the minimum is $20,000.
Would this also be a good financial strategy for people in their 20’s and 30s?
Absolutely!
Not only that, it’s great for parents to implement for babies. The fundamentals of compounding interest work best over the longest possible time horizon.
Generally, it is safe to assume that the Flexmethod is a great strategy for anyone with a lump sum looking to get safety, high growth, tax-free Income, the benefits of life insurance and long term care without being penalized for accessing the money at any time.
Qualifications for non-dependent children is treated just like parents: based on 25% of gross income + 1/28th of their net worth.
For dependent children they can qualify for 75% of the parent’s total plan value. So if mom and dad have $5MM each, that kids could get $3.75MM in total policy value.
How does the Flex Method compare to an annuity?
Annuities have unique guarantees not offered with the Flexmethod, but if it’s high income or growth that you’re looking for, it’s very hard to beat the Flexmethod. Individual situations will vary and should be designed accordingly.
Does any other company sell a product similar to the Flexmethod?
No, there is not any other company doing exactly what we do.
The legacy product in the life insurance world is known as “premium financing” which has been around for decades, but for a wider range of clients instead of just high dollar individuals. Others who are using a similar strategy use IUL policies but we use Whole Life Insurance and Index Universal Life which allows us to provide a more stable/secure investment vehicle.
Another element that sets us apart from others who may have similar approaches is that we customize your plan and make adjustments over the years as needed.
Our knowledge of finance, insurance, and interest rates combined with our status as a broker, enable us to create the best policy for you.
Flexmethod FAQ's
Is there a minimum investment amount needed?
Every situation is different; but we generally the minimum is $20,000.
Would this also be a good financial strategy for people in their 20’s and 30s?
Absolutely!
Not only that, it’s great for parents to implement for babies. The fundamentals of compounding interest work best over the longest possible time horizon.
Generally, it is safe to assume that the Flexmethod is a great strategy for anyone with a lump sum looking to get safety, high growth, tax-free Income, the benefits of life insurance and long term care without being penalized for accessing the money at any time.
Qualifications for non-dependent children is treated just like parents: based on 25% of gross income + 1/28th of their net worth.
For dependent children they can qualify for 75% of the parent’s total plan value. So if mom and dad have $5MM each, that kids could get $3.75MM in total policy value.
I’ve always thought buying term and investing the rest was the best strategy. Does the Flexmethod change that?
Permanent life insurance, when done right, shouldn’t cost money, it should make you money. Outside of the Flexmethod a whole life policy averages 4.5-5% tax-free BUT ONLY AFTER paying into it for 20 years or more. With the Flexmethod, all of that changes. Expected rates of return are typically double and the time period to reach profitability is greatly reduced, and in many cases eliminated. For this reason we don’t see the Flexmethod being a cost, but instead, a resource; just as we wouldn’t consider putting money in a savings account an expense.
How does the Flex Method compare to an annuity?
Annuities have unique guarantees not offered with the Flexmethod, but if it’s high income or growth that you’re looking for, it’s very hard to beat the Flexmethod. Individual situations will vary and should be designed accordingly.
How does Desert Rose Capital Management fit into the Flexmethod?
Desert Rose Capital management is a Registered Investment Advisor. As such, they are heavily regulated. They have the ability and the mandate to act as a fiduciary on your behalf. They monitor the cash value growth of the policy and administer the financing portion of the Flexmethod which amplifies your returns.
Does any other company sell a product similar to the Flexmethod?
No, there is not any other company doing exactly what we do.
The legacy product in the life insurance world is known as “premium financing” which has been around for decades, but for a wider range of clients instead of just high dollar individuals. Others who are using a similar strategy use IUL policies but we use Whole Life Insurance and Index Universal Life which allows us to provide a more stable/secure investment vehicle.
Another element that sets us apart from others who may have similar approaches is that we customize your plan and make adjustments over the years as needed.
Our knowledge of finance, insurance, and interest rates combined with our status as a broker, enable us to create the best policy for you.
I’ve always been told to buy term and investing the rest was the best strategy. Does the Flexmethod change that?
Permanent life insurance, when done right, shouldn’t cost money, it should make you money.
Outside of the Flexmethod a whole life policy averages 4.5-5% tax-free BUT ONLY AFTER paying into it for 20 years or more.
With the Flexmethod, all of that changes. Expected rates of return are typically double and the time period to reach profitability is greatly reduced, and in many cases eliminated.
For this reason we don’t see the Flexmethod being a cost, but instead, a resource; just as we wouldn’t consider putting money in a savings account an expense.
Life Insurance Principles
I’ve always thought buying term and investing the rest was the best strategy. Does the Flexmethod change that?
Permanent life insurance, when done right, shouldn’t cost money, it should make you money. Outside of the Flexmethod a whole life policy averages 4.5-5% tax-free BUT ONLY AFTER paying into it for 20 years or more. With the Flexmethod, all of that changes. Expected rates of return are typically double and the time period to reach profitability is greatly reduced, and in many cases eliminated. For this reason we don’t see the Flexmethod being a cost, but instead, a resource; just as we wouldn’t consider putting money in a savings account an expense.
What does it mean when a policy is “fully paid up?”
This means you no longer have to pay premiums and the policy is paid for by the cash value.
Who can be a beneficiary of life insurance?
The owner of the policy can name anyone they want as the beneficiary. You also have the option to list a charity as your beneficiary. Some policies allow you to list more than one beneficiary and a percentage for each. You can also change the beneficiary at anytime with prior written notice.
What are accelerated death benefits?
A provision on some policies that allow you to take out a portion of the death benefit if you become terminally ill. This amount will be subtracted from the death benefit that your beneficiaries will receive.
Can I get a life insurance policy on anyone?
Yes, as long as you have insurable interest in them. This means that if they were to die, there would be some financial loss to you (i.e. spouse, children, parent, business partner or employee).
Can I have multiple life insurance policies?
Yes. When you apply for another policy, they will take into account any other policies you have to make sure you can afford the new policy.
I’ve always been told to buy term and investing the rest was the best strategy. Does the Flexmethod change that?
Permanent life insurance, when done right, shouldn’t cost money, it should make you money.
Outside of the Flexmethod a whole life policy averages 4.5-5% tax-free BUT ONLY AFTER paying into it for 20 years or more.
With the Flexmethod, all of that changes. Expected rates of return are typically double and the time period to reach profitability is greatly reduced, and in many cases eliminated.
For this reason we don’t see the Flexmethod being a cost, but instead, a resource; just as we wouldn’t consider putting money in a savings account an expense.
What are the different types of Life Insurance?
Common types of life insurance include:
- Term life insurance.
- Whole life insurance.
- Universal life insurance.
- Variable life insurance.
- Simplified issue life insurance.
- Guaranteed issue life insurance.
- Group life insurance.
What makes cash value life insurance a good investment?
Cash value life insurance is an extremely unique asset in the world of investing. There are a few characteristics which separate it from most other investible asset categories.
Below are a few of the defining characteristics of cash value life insuance:
- Investment Safety and Stability: As a policy holder, you have a contract with an A+ rated corporation that ensures your investment cannot lose money. Sometimes this is called a 0% loss floor, meaning you cannot have a ‘negative’ return in a given year. Uniquely, cash value life insurance companies are required by state regulation to carry $1 in cash (think checking account accessible cash) for every $1 they have invested in the market. Comparatively banks are required to only carry $0.17 for every $1 they have invested or loaned out.
- Guaranteed Rate-of-Return: In guaranteed cash value policies, you are guaranteed a rate-of-return.
- Equity Building Asset: Cash value life insurance policies build equity. Unlike term insurance where you are basically ‘renting’ the benefits, with cash value life insurance your benefits are with you for life as long as the policy is in force (read more about how the Flexmethod ensures your policy is always in force).
- Crazy Good Tax Benefits: All life insurance policies pay out your beneficiaries TAX FREE. Meaning if you have a $1,000,000 death benefit, at the time of your death your beneficiaries will get $1,000,000 cash. This amount is never taxed.
- Income Cash Tax Free: Because your policy is building ‘equity’ you can borrow from the equity (just like a home equity line of credit). Like all loans, the money you take out of your policy always comes out tax free.
There are many more benefits of cash value life insurance when the Flexmethod is applied. Speak to one of our experts today to hear how we can help you build tax free income.
How is whole life (cash value) life Insurance different than term?
An easy way to think about it is that cash value (or whole) life insurance is like owning a house and building equity whereas term life insurance is renting an apartment and not building equity.
Cash value life insurance is a type of permanent life insurance that includes an investment feature. Cash value is the portion of your policy that earns interest and may be available for you to withdraw or borrow against in case of an emergency.
Term insurance is a type of life insurance policy that provides coverage for a certain period of time or a specified “term” of years. If the insured dies during the time period specified in a term policy and the policy is active, a death benefit will be paid.
Term Life
I’ve always thought buying term and investing the rest was the best strategy. Does the Flexmethod change that?
Permanent life insurance, when done right, shouldn’t cost money, it should make you money. Outside of the Flexmethod a whole life policy averages 4.5-5% tax-free BUT ONLY AFTER paying into it for 20 years or more. With the Flexmethod, all of that changes. Expected rates of return are typically double and the time period to reach profitability is greatly reduced, and in many cases eliminated. For this reason we don’t see the Flexmethod being a cost, but instead, a resource; just as we wouldn’t consider putting money in a savings account an expense.
I’ve always been told to buy term and investing the rest was the best strategy. Does the Flexmethod change that?
Permanent life insurance, when done right, shouldn’t cost money, it should make you money.
Outside of the Flexmethod a whole life policy averages 4.5-5% tax-free BUT ONLY AFTER paying into it for 20 years or more.
With the Flexmethod, all of that changes. Expected rates of return are typically double and the time period to reach profitability is greatly reduced, and in many cases eliminated.
For this reason we don’t see the Flexmethod being a cost, but instead, a resource; just as we wouldn’t consider putting money in a savings account an expense.
What are the different types of Life Insurance?
Common types of life insurance include:
- Term life insurance.
- Whole life insurance.
- Universal life insurance.
- Variable life insurance.
- Simplified issue life insurance.
- Guaranteed issue life insurance.
- Group life insurance.
Whole Life
I’ve always thought buying term and investing the rest was the best strategy. Does the Flexmethod change that?
Permanent life insurance, when done right, shouldn’t cost money, it should make you money. Outside of the Flexmethod a whole life policy averages 4.5-5% tax-free BUT ONLY AFTER paying into it for 20 years or more. With the Flexmethod, all of that changes. Expected rates of return are typically double and the time period to reach profitability is greatly reduced, and in many cases eliminated. For this reason we don’t see the Flexmethod being a cost, but instead, a resource; just as we wouldn’t consider putting money in a savings account an expense.
I’ve always been told to buy term and investing the rest was the best strategy. Does the Flexmethod change that?
Permanent life insurance, when done right, shouldn’t cost money, it should make you money.
Outside of the Flexmethod a whole life policy averages 4.5-5% tax-free BUT ONLY AFTER paying into it for 20 years or more.
With the Flexmethod, all of that changes. Expected rates of return are typically double and the time period to reach profitability is greatly reduced, and in many cases eliminated.
For this reason we don’t see the Flexmethod being a cost, but instead, a resource; just as we wouldn’t consider putting money in a savings account an expense.
What are the different types of Life Insurance?
Common types of life insurance include:
- Term life insurance.
- Whole life insurance.
- Universal life insurance.
- Variable life insurance.
- Simplified issue life insurance.
- Guaranteed issue life insurance.
- Group life insurance.
What makes cash value life insurance a good investment?
Cash value life insurance is an extremely unique asset in the world of investing. There are a few characteristics which separate it from most other investible asset categories.
Below are a few of the defining characteristics of cash value life insuance:
- Investment Safety and Stability: As a policy holder, you have a contract with an A+ rated corporation that ensures your investment cannot lose money. Sometimes this is called a 0% loss floor, meaning you cannot have a ‘negative’ return in a given year. Uniquely, cash value life insurance companies are required by state regulation to carry $1 in cash (think checking account accessible cash) for every $1 they have invested in the market. Comparatively banks are required to only carry $0.17 for every $1 they have invested or loaned out.
- Guaranteed Rate-of-Return: In guaranteed cash value policies, you are guaranteed a rate-of-return.
- Equity Building Asset: Cash value life insurance policies build equity. Unlike term insurance where you are basically ‘renting’ the benefits, with cash value life insurance your benefits are with you for life as long as the policy is in force (read more about how the Flexmethod ensures your policy is always in force).
- Crazy Good Tax Benefits: All life insurance policies pay out your beneficiaries TAX FREE. Meaning if you have a $1,000,000 death benefit, at the time of your death your beneficiaries will get $1,000,000 cash. This amount is never taxed.
- Income Cash Tax Free: Because your policy is building ‘equity’ you can borrow from the equity (just like a home equity line of credit). Like all loans, the money you take out of your policy always comes out tax free.
There are many more benefits of cash value life insurance when the Flexmethod is applied. Speak to one of our experts today to hear how we can help you build tax free income.
Why Life Insurance
I’ve always thought buying term and investing the rest was the best strategy. Does the Flexmethod change that?
Permanent life insurance, when done right, shouldn’t cost money, it should make you money. Outside of the Flexmethod a whole life policy averages 4.5-5% tax-free BUT ONLY AFTER paying into it for 20 years or more. With the Flexmethod, all of that changes. Expected rates of return are typically double and the time period to reach profitability is greatly reduced, and in many cases eliminated. For this reason we don’t see the Flexmethod being a cost, but instead, a resource; just as we wouldn’t consider putting money in a savings account an expense.
What makes cash value life insurance a good investment?
Cash value life insurance is an extremely unique asset in the world of investing. There are a few characteristics which separate it from most other investible asset categories.
Below are a few of the defining characteristics of cash value life insuance:
- Investment Safety and Stability: As a policy holder, you have a contract with an A+ rated corporation that ensures your investment cannot lose money. Sometimes this is called a 0% loss floor, meaning you cannot have a ‘negative’ return in a given year. Uniquely, cash value life insurance companies are required by state regulation to carry $1 in cash (think checking account accessible cash) for every $1 they have invested in the market. Comparatively banks are required to only carry $0.17 for every $1 they have invested or loaned out.
- Guaranteed Rate-of-Return: In guaranteed cash value policies, you are guaranteed a rate-of-return.
- Equity Building Asset: Cash value life insurance policies build equity. Unlike term insurance where you are basically ‘renting’ the benefits, with cash value life insurance your benefits are with you for life as long as the policy is in force (read more about how the Flexmethod ensures your policy is always in force).
- Crazy Good Tax Benefits: All life insurance policies pay out your beneficiaries TAX FREE. Meaning if you have a $1,000,000 death benefit, at the time of your death your beneficiaries will get $1,000,000 cash. This amount is never taxed.
- Income Cash Tax Free: Because your policy is building ‘equity’ you can borrow from the equity (just like a home equity line of credit). Like all loans, the money you take out of your policy always comes out tax free.
There are many more benefits of cash value life insurance when the Flexmethod is applied. Speak to one of our experts today to hear how we can help you build tax free income.
Policy Terminology
What does it mean when a policy is “fully paid up?”
This means you no longer have to pay premiums and the policy is paid for by the cash value.
Who can be a beneficiary of life insurance?
The owner of the policy can name anyone they want as the beneficiary. You also have the option to list a charity as your beneficiary. Some policies allow you to list more than one beneficiary and a percentage for each. You can also change the beneficiary at anytime with prior written notice.
What is the underwriting process?
Underwriting is when the insurance company reviews your application and decides to approve, deny, or change your insurance policy (ex: change the health rating).
What are accelerated death benefits?
A provision on some policies that allow you to take out a portion of the death benefit if you become terminally ill. This amount will be subtracted from the death benefit that your beneficiaries will receive.
What is a risk classification?
An insurance risk class is a group of individuals that have similar characteristics, which are used to determine the risk associated with underwriting a new policy and the premium that should be charged for coverage.
There are various classifications used by the insurance carriers which are often established based on a physical exam and requested medical records from the applicants.
What is a Rider?
Riders are the extra benefits that a policyholder can buy to add on to a life insurance policy. The most common include guaranteed insurability, accidental death, waiver of premium, family income benefit, accelerated death benefit, child term, long-term care, and return of premium riders.
What is the Cash Value?
How much the policy is worth while you’re alive; assuming the policy stays in force.
Underwriting Health Exam
What is the underwriting process?
Underwriting is when the insurance company reviews your application and decides to approve, deny, or change your insurance policy (ex: change the health rating).
What if my health improves down the road (i.e. lost weight, stopped smoking, etc.)?
If your health improves, you may be able to be re-evaluated. If instead they discover you would classify into a higher health rate, you would remain in the previously determined category.
How is my health rating determined?
The insurance company will consider your age, gender, family health history, and ask a series of other health questions. If a medical exam is needed, they will take your height, weight, blood pressure, urine sample and blood sample. This information will determine your health class rating.