Mike Jaap’s Story
Read the uplifting story of how one man was able to save his family business using his permanent life insurance policy. Most people think life insurance can only be used after you die – but that’s not true. There are many options available that give you benefits while you are still alive.
Permanent life insurance is different than term life insurance. The premiums you pay for a permanent life insurance policy go towards a death benefit but they also build a ‘cash value.’ You can use this cash value to your advantage during your lifetime, which is great to know when times are hard, or you need an injection of cash.
A Family Business on the Brink of Ruin
Mike Jaap, a business owner from Phoenix, Arizona, was able to use the cash value from his permanent life insurance policy to save his metal recycling business from financial ruin. He was able to pull money out of his whole life policy to keep his business going during the financial crisis of 2008, saving his family from hardship – and helping to keep his workers employed.
Watch Mike’s Story
When Mike sought advice from Insurance Professional Bill Cassidy, his business was doing well. Bill advised Mike to separate some of his profits and sequester them inside a life insurance policy. Following Bill’s advice, Mike took out a permanent life insurance policy, even though the premiums were slightly more than those he would have paid for a term life insurance policy. Business was good for Mike; he had built up a sound reputation and referrals led to increasing success.
But then came the financial crisis of 2008.
Because of the financial crisis in 2008, some of Mike’s clients had to back out of their contracts and several of the businesses he worked with went bankrupt. It was a terrifying time for Mike and his wife. He needed a significant sum of money if he was going to keep his business going.
Mike went to Bill for advice, and Bill reminded him that his life insurance policy had built up a considerable cash value. Bill was able to pull the money out from the policy and put it on a wire to Mike’s bank account in just two days.
Mike’s life insurance policy saved his business, his family, and his employees.
Permanent Life Insurance and Living benefits
Borrowing from the Cash Value of Your Policy*
Just like Mike, you may be in a situation where you need extra money. It might be to save a family business, but it can be used for anything. For example, you might want to borrow cash value for a down payment on a new home, a college education, unexpected medical bills and more.
When you borrow from the cash value of your policy, you are essentially borrowing from yourself, often with low interest rates and flexible repayment terms. If you do borrow, you will need to pay back the full amount of the loan, plus interest. Otherwise, the amount of the loan that is unpaid will be subtracted from the proceeds of your life insurance at the time of death. That could mean the amount of money your beneficiaries receive may be less than you originally planned.
If you are interested in finding out more about a permanent life insurance policy, get in touch with us. We look forward to providing you with the peace of mind that this type of policy can bring.
Asurea offers Life Insurance, Mortgage Protection Life Insurance, Medicare Supplement Insurance, Final Expense Insurance, Disability Insurance, Long-term Care Insurance, Retirement Planning products and more. For additional information, click on the ‘Learn More’ button below. Want to have articles just like this delivered to your inbox? Just enter your email address in the box below and click ‘Subscribe.’
This information is provided for general consumer educational purposes and is not intended to provide legal, tax or investment advice. Loans borrowed from your life insurance policy will accrue interest. An outstanding loan balance (loan plus interest) will be deducted from the death benefit at the time of claim. *Accessing cash values may result in surrender fees and charges, may require additional premium payments to maintain coverage, and will reduce the death benefit and policy values.
Latest posts by Leslie Freeland (see all)
- Protecting Your Yard During Drought - May 24, 2019
- Good Credit Might Equal Lower Insurance Rates - May 19, 2019
- Chronic, Critical & Terminal Illness Riders: What’s the Difference? - May 17, 2019