We look forward to the Van Mueller newsletter every month. It's chock-full of sound bites, sales tips, and eye-opening statistics. Here are our favorite parts of the June 2021 edition. We're sharing the full introduction, and 2 of the 7 monthly sales ideas. If you like what you read, we encourage you to click here and become a subscriber.
Reprinted with the author's permission.
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June 2021 – 7 Ideas and Views Newsletter by Van Mueller
What would you say if I told you the life insurance industry is the world’s safest industry?
What if I shared that the life insurance industry can provide a strategy that yields 20 to 30 times the safe money yield of a CD or a savings account?
What if this strategy had guaranteed return in most cases with no downside danger, only upside opportunity?
What if I told you this wonderful strategy would never have to be reported to the Internal Revenue Service or reported on a FAFSA?
What if this strategy allowed its values to be accessed at any time without penalty and have always been available during serious economic downturns?
What would you say if I told you that you could use the values in retirement to provide a 100 percent income tax free supplement to your retirement that you couldn’t outlive?
What would you say if I told you that you could use the values in retirement to provide a 100 percent income tax free supplement to your retirement that you couldn’t outlive?
Would you want benefits like those listed above for yourself and do you believe that your prospects, clients and customers would be especially interested in benefits like these for themselves?
Didn’t I just describe a cash value life insurance policy? What do most people believe you have to do to collect on life insurance? Isn’t it that they must die? Isn’t it true that there are very few people who are aware of the spectacular LIVING benefits of a cash value life insurance policy? Isn’t that why we call it life insurance? Have we ever paid any benefits to a dead person? Of course not. The benefits are available to take care of the people we love and the businesses we’ve created and the charities we have considerations for. Then I lean in and I explain that I don’t want my customer to die. What if I could show you all the living benefits of a cash value life insurance policy? Would that help to clarify why so many leaders and financially well-off people own enormous amounts of cash value life insurance?
I then ask, “Do you know almost no one knows how wonderful these plans are?” Do you know why?
It’s because government places tight restrictions on the advertising of these accounts even though they are 100 percent legal. Why does the government and the Internal Revenue Service wish to keep these accounts a secret? We will talk about that later.
Government places tight restrictions on the advertising of these accounts even though they are 100 percent legal. Why does the government and the Internal Revenue Service wish to keep these accounts a secret?
Who Uses These Accounts?
1. President Kennedy had substantial life insurance holdings.
2. Many other presidents owned large life insurance holdings.
3. Franklin D. Roosevelt held a significant portion of his wealth, $562,000 in cash value life insurance, which is equivalent to over $7 million in today’s dollars.
4. John McCain funded his presidential campaign with the cash value from his policies.
5. Joe Biden, our current president has six policies with Mass Mutual Life Insurance Company, according to his executive branch personal “Public Financial Disclosure Report.”
6. Hillary Clinton has at least $100,000 of cash value in her life insurance policies.
7. In 2014 Johnson & Johnson executives put $23 million in cash value life insurance.
8. John D. Rockefeller used cash value life insurance to build and PRESERVE wealth for his family. The Rockefeller method was created to share how his family used and continues to use cash value life insurance. When he died in 1937, John D. Rockefeller was worth an estimated $1.5 billion. That is equivalent to somewhere between $243 and $341 billion in today’s dollars. There is a wonderful book that has been written about The Rockefeller method that you can buy from Amazon or actually print for free off the internet. The title of the book is, What Would The Rockefellers Do? How the Wealthy Get and Stay That Way, and How You Can Too.
9. Walter Chrysler and Pierre S. DuPont had $274 million in cash value life insurance.
10. Billionaires Bill Gates and Warren Buffet found a way to invest a combined $1.5 billion in cash value life insurance for their foundation.
11. Bankers, Wall Streeters and Fortune 1000 executives use these accounts extensively building tax free pension plans and highly leverage death benefits. 51 percent of money and equity managers own a zero stake in the funds they manage. Most own enormous amounts of cash value life insurance. They ask you to invest with them while they invest no money in the investments they manage. What does that tell you? Shouldn’t we ask our customers what that means?
12. Ben Franklin left two $4,400.00 gifts, one for Boston and one for Philadelphia. The two cities have collected over $8 million thanks to that $8,800 gift. They have received 900 times more than the gift.
Please remember this important information. Life Insurance Is Easy, Accessible And Liquid.
Approximately 3800 banks own more than $190 billion in cash value life insurance.
1. Bank of America – Has more money in cash value ($22 billion) than all the value of it’s 5600 branches and the second tallest building in Manhattan, valued at $12.9 billion.
2. Citi Bank – Has approximately $6 billion in cash value life insurance and has less than $5 billion in other assets.
3. J.P. Morgan Chase – Has $11 billion in cash value life insurance and around $11 billion in other assets.
4. Wells Fargo – Has $19.3 billion in cash value life insurance and only around $10 billion in other assets.
5. Bank of America – Owns $22 billion of cash value life insurance while only having around $15 billion in other assets.
6. PNC Financial – Has around $6.1 billion in cash value life insurance and less than that in other assets.
According to the Federal Deposit Insurance Corporation (FDIC), the largest 38 banks in America have invested over $140 billion in cash value life insurance, Sixty-eight percent of these banks have more money in cash value life insurance than they have invested in skyscrapers, IT networks, and bank branches.
The largest 38 banks in America have invested over $140 billion in cash value life insurance. Sixty-eight percent of these banks have more money in cash value life insurance than they have invested in skyscrapers, IT networks, and bank branches.
WHY DO BANKS BUY SO MUCH CASH VALUE LIFE INSURANCE?
Banks are required by regulators to keep large amounts of cash on hand to meet unexpected obligations. This cash cushion must be unassailable. Banks must be able to access this cash immediately. They cannot put this money at risk.
Regulators call this TIER ONE CAPITAL. By law, banks must keep four percent of assets in Tier One Capital. Using cash value life insurance was so attractive, the Federal Reserve had to make a rule to limit how much cash value life insurance banks could buy.
Currently banks are only allowed to keep a maximum of 25 percent of their Tier One Capital in cash value life insurance. Banks buy ALL they are allowed to buy.
Please consider this information if you think or believe an economic disaster is coming. 9000 banks went bankrupt in the Great Depression. Less than 2 percent of life insurance assets were impaired. In 2007 and 2008, 450 banks went bankrupt and less than 1 percent of the life insurance companies assets were impaired.
The Wall Street Journal says a cash value life insurance account has become a tax shelter for the rich. It gives the affluent tax advantages far beyond those available to middle income people through a 401(k) and IRA.
The Wall Street Journal says a cash value life insurance account has become a tax shelter for the rich. It gives the affluent tax advantages far beyond those available to middle income people through a 401(k) and IRA.
I turn it around and ask another question of my middle and upper middle-class customers. I ask them why they aren’t using the same techniques that are helping the wealthy get and stay wealthy. Wouldn’t that be the most effective way to build financial and retirement success?
Ed Slott, who is a hero to the life insurance industry shares an important opinion at every “Master Elite Advisor Training Session,” and every time he is on public television. He starts by sharing that he is a Certified Public Accountant and that he sells nothing. However, he feels it is important to share with everyone that “The Tax Exemption For Life Insurance Is The Single Biggest Benefit In The Tax Code.” Ask your customers why all these people use cash value life insurance if it’s not a valuable piece of a successful financial and retirement future.
Do you know why the government restricts the advertising of cash value life insurance? The government places tight regulations and controls on the advertising of these accounts because once your money is in them, the government and the Internal Revenue Service “Can’t Make A Dime Off Of Them!”
That raises another question. If the government needs more revenue in the future how much longer do you think cash value life insurance will be allowed to exist in its present form? That raises a final question. Won’t it then be true that the only people allowed to own cash value life insurance, with all its current benefits in the future, will be the ones who owned it before the laws change?
If the government needs more revenue in the future how much longer do you think cash value life insurance will be allowed to exist in its present form?
Who else has used the benefits of cash value life insurance to enhance their financial life?
1. Walt Disney used the cash value from his cash value life insurance policy to help build Disneyland, when banks were hesitant to loan him money. Remember, isn’t it true that banks only loan money when you really don’t need it? Wouldn’t it be nice to be the loan officer of your own money? Ask ANY businessperson.
2. John Cash Penny used $3 million of his cash value during the Great Depression to keep his stores afloat. He eventually built J.C. Penney into a 1000 location company valued at $3.4 billion.
3. Ray Kroc used the cash value of his life insurance to start McDonalds. You all know what that turned into. Isn’t having access to money at pivotal times vital to taking advantage of business opportunities. Shouldn’t business owners be made aware of this information?
4. The Rothchild Family
5. Doris Christopher, The Pampered Chef
6. John Belushi
7. Andy Warhol
8. Will Rogers
9. Al Capone
These are just a few names. Why aren’t more names known? Because cash value life insurance is private and is outside the purview of government and the public. We do not know the full extent of how much cash value life insurance is being used by individuals, businesses and charities. I will tell you this; cash value life insurance is used extensively by people who understand all the wonderful benefits that are provided by this product.
Do you know that you can also verify life insurance safety at the American Council of Life Insurers (ACLI). When you get to the website if you compare assets to liabilities you will discover that the life insurance industry can pay EVERY claim it has and still have a surplus. WOW! That is the kind of reassurance that our prospects and clients need to be made aware of. Ask them if they know and understand how safe cash value life insurance is.
The life insurance industry can pay EVERY claim it has and still have a surplus.
Ask your prospects and clients how many savings accounts and CD’s the banks own. The answer is ZERO. Then ask if they know how much the banks own of cash value life insurance. Wouldn’t they be amazed to find out that the number is more than $190 billion?
The above information should easily prove that this is the greatest time ever to sell cash value life insurance. If you sell cash value life insurance for the first time in the history of the business, you are the competition. No one can touch you. You have a product that allows one dollar to do the work of many dollars. My dollar takes care of you if you live too long. My dollar takes care of your family, business or charity if you die too soon. My dollar is self-completing if you become totally disabled and have waiver of premium on your contract. My dollar has a critical illness benefit. You can access the funds if you have a critical illness like a heart attack, stroke or cancer and when you die, the death benefit will replace the money you used during your critical illness. If you don’t need critical illness benefits you haven’t wasted one cent on the coverage. Cash value life insurance has a terminal illness benefit. If you become terminally ill, you can access most of the death benefit of your cash value life insurance so you can help develop a plan to look after your family, business or charity before you die. My cash value life insurance will also provide long term care benefits that can be used anywhere. When you die, the death benefit replenishes the money so there is money to care for the person who cared for you. The best part is that if you don’t need long term care, you haven’t wasted any premiums if you never need the benefit. Finally, the ultimate goal is to provide a tax-free income stream in retirement to supplement your retirement income. What’s ever left will be paid to your family, business or charity free of income taxes.
Cash value life insurance is also pennies that buy dollars. If you could buy a dollar for 3 to 10 cents per year wouldn’t that be amazing? These benefits are the spectacular wonder of cash value life insurance.
If you could buy a dollar for 3 to 10 cents per year wouldn’t that be amazing? These benefits are the spectacular wonder of cash value life insurance.
Let’s finish the narratives for the 40 questions.
37: Do you know what the “Van Mueller” Rule of 109-12 is? Do you know how to use the progressive nature of the income tax laws to reduce or eliminate taxes on fully taxable money?
Do you know in the year 2021 a married couple over the age of 65 filing a joint return can make up to $109,000 and still be in the 12 percent tax bracket? Under current law this couple would pay 0 percent long term capital gains. Mr. & Mrs. Prospect, would you prefer to pay taxes at your rate while you are alive, or would you prefer to wait until you die and have the taxes paid at your children’s much higher rate? By the way, there are only 8 million people in the United States who make over $100,000. The other 322 million people would be interested in this question.
38: Do you know the difference between marginal tax rates and effective tax rates? Which one is better?
Mr. & Mrs. Customer, did you know the marginal tax rate is the largest tax rate you pay on the last dollar you have earned? The effective tax rate is the rate you pay on your entire amount of taxable income. For the Van Mueller Rule of 109-12, that couple would pay 12 percent tax on the $109,000 last dollar. However, their effective tax rate would be 8.57 percent. Ask your customer if they could eliminate forever, the taxes on $109,000 and it would only cost them $9,346 or 8.57 percent, would they do it? That is a small example of the difference between the marginal tax rate and the effective tax rate.
39: Have you heard of the power of zero?
Did you know that you can build an income tax free retirement under many circumstances? If we could show you how to reduce your income tax liability to zero in retirement, at the very least, wouldn’t you want to know how to do that? What if it was easier than you could have ever imagined? Would you want to know how to do it? There is no cost or obligation for this. We only ask you questions that allow you to clarify in your own mind how this can be done. We believe you will be so pleased with the information that when we are done, you will walk us to our car and hold our car door open for us. May I see you tomorrow evening?
Did you know that you can build an income tax free retirement under many circumstances?
40: If someone periodically snuck up behind you and reached into your wallet or purse, would you ever try to stop them? May I ask you a question? Why do you let the Internal Revenue Service, government, Wall Street, hospitals and nursing homes do that? What if you could be in control of who put their hands in your wallet or purse, when would you want to know how to do that, before or after they put their hand in your wallet or purse?
Mr. & Mrs. Customer how many times will you let this happen before you build a strategy that prevents this from occurring ever again? Aren’t these events going to occur more and more? Shouldn’t you be in control of what happens?
41: Develop your own questions.
Aren’t the questions different for every age group? Please remember the purpose of the questions are two-fold. The first purpose of the questions is to get an appointment. The second and most important goal of the questions is to inspire our prospects and clients to take action. Here are some recommendations to build your questions around.
Age 30
1. Questions About Protection
2. Questions About Growth and Accumulation
3. Questions About Tax Deferral
4. Questions About Tax Free Growth
Age 50
1. Questions About Guaranteed Retirement Income
2. Questions About Retirement Savings
3. Questions About Tax Reduction or Elimination
4. Questions About Increased Quality of Life
Age 70
1. Questions About Reduction or Elimination of Tax
2. Questions About Inflation
3. Questions About Income That Cannot Be Outlived
4. Questions About Legacy
Use the above guidelines to develop questions to ask prospects and clients. Please remember, NO ONE likes to be told what to do. When you ask questions, you become an important resource for prospects and clients. The questions take the customers through a process of discovery. The questions help them reason out for themselves the most appropriate course of action. Questions are the secret to success in our industry.
Idea #3: Inflation Is a Major Concern for Retirees
Many costs are increasing for retirees. These eleven items have increased more than 100 percent and two more than 200 percent since the year 2000. The eleven items are: real estate, gasoline, ground chuck, propane gas, potatoes, total medical out of pocket costs, home heating oil, veterinary service, homeowner’s insurance, Medicare Part B and prescription drug out of pocket costs. The last two increased by 226 percent and 272 percent. Retirees’ Social Security checks have not increased anywhere near 100 percent since the year 2000. What does that mean? Retirees are losing purchasing power. Inflation is causing a reduction in the standard of living of America’s retirees. Shouldn’t we plan for this lost purchasing power?
Title: Top 11 Fastest-Rising Costs for Older Americans
https://www.thinkadvisor.com/ (Think Advisor, May 13, 2021)
https://www.thinkadvisor.com/2021/05/13/top-10-fastest-rising-costs-for-older-americans/
Idea #5: More Information about Annuities
The more you know about annuities the better equipped you are to sell this vital accumulation and retirement product. I love this article because it is written in questions. There are 16 questions about annuities that this article gives the answers to. Many of the questions that your customer would ask if they knew what to ask. If they don’t know what to ask you can help them understand annuities by asking the questions for them. What a great article. What a wonderful time to sell annuities. Please remember, your competition is not other annuities. That’s where agents make their mistake. Their competition is savings accounts and CD’s. If a CD is paying two-tenths of a percent and you have an annuity that pays two percent, you are paying 10 times what they are currently earning. On $100,000 a CD would provide $200 per year of interest. An annuity paying two percent would pay $2,000 per year. That is $1,800 more per year. If the customer lives for 10 years that is $18,000 more for the customer. Please ask them this question. Would you prefer your family gets that $18,000 or would you prefer that the bank keeps that $18,000? That is a big deal. Can you imagine 3 percent on $400,000 instead of two-tenths of one percent. Instead of $800 per year of interest the customer would receive $12,000 per year of interest. That’s $11,200 more per year. If the client lives for ten years, that is an extra $112,000 in our customers pocket rather than the banks pocket. Ask them which pocket they would like to see that extra interest go in to? Your pocket or the banks? Guess which pocket they pick.
Title: 16 Things You Need to Know Now About Annuities
https://money.usnews.com/ (U.S. News and World Report, May 3, 2021)
https://money.usnews.com/investing/investing-101/articles/things-you-need-to-know-now-about-annuities
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