Life Insurance: Is it for you?

Michael G. Romanello, CEP, CLTC

What do Pampered Chef, McDonald’s, JC Penney and Disney World all have in common? They borrowed money against their life insurance policies to start their businesses. Many people don’t know this and maybe you do, but the point here is to illustrate how valuable life insurance is. Life insurance, is it for you?

How many people invest in stocks and mutual funds to fund their businesses or to pay off debt? When you need to access your money you are going to pay the toll. Consider the following scenarios:

  • You can access your money but you will pay steep taxes and possible penalties.
  • You have to wait until a certain age to access your money.
  • You are limited on how much you can save.
  • You have to qualify to access money.
  • The money can only be used for purposes that meet their parameters.
  • If you need money, you could sell the investment but you will lose on future gains.
  • Your savings may become inaccessible if there is a change of income, home values or credit.

I think we can all agree that it is crucial to have capital when you need it most and tersometimes in days or weeks, usually less than a month. If you borrow from a bank, let’s say for a business loan, they will charge you higher fees and personally guarantee your loan. If you borrow from your life insurance policy, there is no interest.

Life insurance is a great investment for turbulent times, in that it keeps its face value and is available immediately, when you want it and for whatever reason, no questions asked.

Besides, insurance costs much less than people think. According to the Insurance Barometer Study by Life Happens and LIMRA, 86% of people haven’t bought life insurance because they thought it was too expensive but the fact is they overestimate its cost by 2 times.

How can permanent life insurance help your family and business prepare for success in any situation? Contact us today to discuss how a life insurance policy might work for you.

Michael G. Romanello is a licensed securities broker located in Westlake, Ohio. Contact his office at

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