While there are several positive attributes of cash dividends, they all carry a risk….and uncontrollable risk: The dividends may be reduced at any point in time or stop completely.  You have no control over the amount or timing of any corporate dividend. Namely, we are referring to cash dividends from publicly traded companies listed on an Exchange, such as the New York Stock Exchange or the NYSE MKT (formally known as the American Stock Exchange), and NASDAQ.   

Company Dividend History

There are companies that are known for paying cash dividends and have a history of successful distributions.

But that list is shrinking, and there is an increasing number of companies cutting back on cash dividends and stock dividends. The volatility of the US Markets is having a major impact on company and stock performance as well as the global economic, political, and social conditions. More pressures are being placed on companies to perform and meet or exceed shareholder expectations because everyone enjoys a “good return on investment.” The bottom line is that the balancing act of keeping shareholders happy with good returns, keeping enough capital on hand to run the business, and meet the ever-growing challenges of daily operations, a toll is being taken on cash dividends. 

The purpose of a life insurance policy is to protect and preserve your assets and income in case you or your family suffer a loss (i.e., lose your income, loss of a family member’s income, the inability to work, or other reasons). But did you know that you may be able to use a life insurance policy to provide tax-advantaged? Did you also know that you may be able to have national and well-known banks assist in the funding of your premiums to provide a larger cash value? Think about this: Many people have (or had) a mortgage to buy a home, but have you ever considered a similar concept to fund your life policy for more cash growth?

Using Premium Financing to Increase Cash Growth

The ability to use banks to help fund your policy premiums can be accomplished using a concept known as “premium finance.” At this point, you may already be asking yourself: How is this possible? How much can I get from the banks to fund my retirement? Are there loan documents? What are the risks? What are the terms? All great questions, and we’ll offer some information to help you understand the concept of premium finance and tools to conduct further research.

Until recently, there have not been many options to pay for long-term care (LTC) costs. Some people may be fortunate enough to self-fund their care or purchase a traditional long-term care policy from an insurance company. Even then, the cost of the premiums could be quite high if the plan is started later in life. Today, the costs of long-term care are astronomically higher than previous generations, and there are less traditional LTC policies being offered by insurance companies.

What are the alternatives? If you have not researched today’s annuities or life insurance with long-term care riders, it is worth your time. Products with these riders have the potential to protect and grow your cash value while offering ongoing income payments with the added protection of long-term care benefits.

Did you know that you have a valuable asset which is often overlooked and may not be included in conversations regarding your financial portfolio?  It’s your life insurance policy. Many people are not aware that a life insurance policy is an asset which can be sold with some of the terms being set by the owner.   

All too often life insurance owners surrender their policy to the insurance company instead of getting a quote in the “secondary” market for what it’s actually worth.  The market value of a life policy can be as much as eight times more than the surrender value!  If you have a life policy which is unwanted, unneeded or has become unaffordable, you can get a quote for the cash value in the open market.  Typically, you will have several choices as to the disposition of your policy.  

Until recently, there have not been many options to pay for long-term care (LTC) costs. Some people may be fortunate enough to self-fund their care or purchase a traditional long-term care policy from an insurance company. Even then, the cost of the premiums could be quite high if the plan is started later in life. Today, the costs of long-term care are astronomically higher than previous generations, and there are less traditional LTC policies being offered by insurance companies.

What are the alternatives? If you have not researched today’s annuities or life insurance with long-term care riders, it is worth your time. Products with these riders have the potential to protect and grow your cash value while offering ongoing income payments with the added protection of long-term care benefits.