New Dynasty Insurance

Regarding the current financial markets are you more hopeful
that the worst has happened or fearful that the worst is
yet to come?
Do you believe that the current economic crisis was planned?
Do you feel that the government bail out is only rewarding
those who have been irresponsible with finances?
Has your income over the past year been significantly reduced
due to the current economic crisis?
Do you see the current down-turn in the market is going to
adversely effect your household income during the next year?
Do you know family or friends who have lost or are about
to loose their home due to foreclosure?
Are you at risk to loosing your home to foreclosure?
Do you think this is a good time to buy property or do you think prices will
continue to significantly drop?
In the past year, have you or anyone in your home thought of taking on a
part-time job in addition to your regular job?
Do you currently have a business?
If "No": In the past year, have you thought of starting a business, or buying
a franchise?
Are you currently signed up in a multi-level business?
Have you heard of debt stacking as a way of paying off debt?
Do you feel that you have an adequate amount of life insurance?
Do you feel that you have the right kind of life insurance contract?
Did see or hear about the Federal Trade Commission's study on the rates
of return on "investment insurance" (cash value contract) was inadequate
to help families prepare for retirement?
Have you heard of the rule of 72? and why the banks don't tell you about it?
If you could find a way to pay off debt more quickly, using the same dollars,
would you be interested?
Would it surprise you to know that 95% of those who retire are dependent on
Social Security to survive?
Do you currently have a properly prepared will?
Do you currently invest in mutual funds?
Do you maximize your IRA contributions each year?
If "No": If you could find a way to maximize your IRA's would that be of
interest to you?
Do you feel you are prepared for retirement?
Do you plan to stay in California when you retire?
Have you been to a long term care presentation?
Have you heard that 50% of those who use long term care are under
40 years of age?
Would you be interested in a seminar presented by a long term care specialist?
Would you be interested in a seminar presented on mutual fund investments?
Would you be interested in a seminar presented on annuities?

There are three principal kinds of insurance contracts.

The one that is sold the most is a "cash value" policy, (the company offers the
agent selling it more commission, to encourage its sale).
This policy has an element of investment built in, and the "investment" grows at
a very poor guaranteed rate of return - (starting in 3 to 4 years).
Because the cost of the insurance goes up with age, you never know how much is
the real cost of the insurance and hence how much is actually invested.
As the cost of insurance grows, the insurance company begins to compensate itself
out of "your savings" because the cost to you, remains the same until you die.
If after some years, the "investment" has grown to an amount worth borrowing from,
and if you borrow from it, you have to pay the loan back to the insurance company
and until you do so, you pay a higher rate of interest than the one they give you.
Should you die while owing the company any loaned out money, the balance of the
loan is deducted from the "face value" of the policy - the original insured amount.
You can get the full amout of the "investment" but may have to pay "surrender charges"
and worst of all, you have to give up the protection - because you must "surrender"
the policy - that is, you must return the policy to the company.
You are in fact paying for both the insurance, at a growing but hard to figure out
cost, and the "investment" of what ever is left, after taking out the insurance costs,
but when you die the company only pays the amount you insured for (face amount),
and keeps any "cash value savings" - remember, if you borrowed from it, the
balance of the loan is deducted from the the face amount paid to your beneficiaries.
Say you bought a $300.000 face amount, your cash value has grown to $20.000 at
4%, you borrowed $5.000 at 8% - now, if you die: you might owe the company $6.000
because of the higher interest rate, therefore your beneficiaries get only $294.000
and the insurance company keeps the rest of the cash value amount - they didn't
even let them keep the $6.000 you owed them.
If you wanted your cash value you might get $20.000 less $6.000 less maybe $500 -
but you lose your protection of $300.000 should you die a few days after giving it up.
Even though you paid for both, insurance and investment, you only get one or the
other, not both.

The next one is an "Accidental death" policy.
This policy has a very low cost, but because it is basically a great gamble, it is not
a good "bet", because it only pays out if you should die as a direct result of an
accident and within a limited period of time from the date of that accident.

The third and best kind is: a "Term policy".
This policy is guaranteed to have a fixed price for an agreed number of years - term.
It can be guaranteed renewable in that at the end of the term, even when you would
be no longer "insurable" due to health conditions, you are guaranteed to renew the
policy for another term but for no more than the "face value" of the contract
being renewed.
This is normally the best value as you know how much the insurance costs,
no conditions as to cause of death and if you invest an amount comparable to what
you hope is being "invested" in the "cash value" policy (an amount you never really
know), and at maybe a much higher interest rate than the guaranteed one that
the insurance company offers you, you would then have a nest egg that you could
use when you needed it without having to borrow it at a higher rate or may have
to pay it back.
Should you die prematurely, your beneficiaries will get the full "face value" you had
insured for, and whatever your investment had grown to, will also be given to them.
Say you bought a $500.000 policy for less than what a "cash value policy" would cost
and invested the difference in mutual funds, shares, other investments - and they
started to grow from day one, and should you die within the term of the policy - your
beneficiaries would get $500.000 and whatever the separate investment had grown to.
Return from: Kinds of insurance contracts.

Rule of 72 -
Divide 72 by the interest rate % to get the approximate number of years/periods for
your investment to double in value.
So: 72 divided by 24 equals 3 - at this A.P.R, $1.000 will double to $2000 in approx.
3 years this is due to the fact that
1.24 * 1.24 * 1.24 = 1.906624 (almost 2.0)
If you are getting this A.P.R, your money will double in 3 years, but also if your
credit card company is charging you this A.P.R, then your DEBT will also DOUBLE
in 3 years!!!

Divide 72 by 4, you get 18. Therefore for your money to double in 4 years, you need
to get 18% return (your debt, also doubles, if you are paying 18% to borrow money)
1.18 * 1.18 * 1.18 * 1.18 = 1.9388 (almost 2.0) Return from: Rule of 72