[Week 3] Ask Me Anything: What Happens to my Cash Value When I Die?

Curtis Ray's Podcast

"What Happens To My Cash Value When I Die? Does My Cash Value Pay Back The RELOC™?
This topic is one I hear often AND one that even financial professionals misunderstand – not to mention consumers that find it confusing, so I am glad to take a minute and explain how Cash Value works. In the MPI® plan, there are 3 buckets of money. Each one is both independent of the others and working together to provide you with your best future.
Bucket #1 is your life insurance contract. This amount is a contractual guarantee with the life insurance company that when you pass, no matter your age, as long as your contract is current, your beneficiaries will receive that money; this is what makes it “permanent insurance."
Bucket #2 is your cash value. This is the amount of money you have saved above the cost of insurance and other expenses plus all the Compound Interest it has earned over time. This money is your money and can be accessed during your lifetime at any time, for any reason, at any age without penalty. This is where your retirement is built.
Bucket #3 is your RELOC™ value, or Retirement Equity Line of Credit, also known in the industry as an Index Loan. This is the amount of money that has been accessed through the MPI® system to increase your Compound Interest potential. This money is not your money but we use it to increase the growth potential inside your account. As the RELOC™ makes you net positive interest, it is added to Bucket #2 increasing the cash value bucket. When the RELOC™ doesn’t earn at least 4%, the current rate of interest, money from the cash value bucket then transfers back to the RELOC™ bucket. For more information about how the RELOC™ works, Text RELOC to 30500 and I will send you another video explaining how it works.
So what happens to these 3 buckets when you pass away? Bucket #1, your life insurance contract + Bucket #2, your current cash value, get added together forming what is known as DEATH BENEFIT. That is the amount paid to your designated beneficiaries. Bucket #3, which was never your money, is taken back by the insurance company.
As you can see, the RELOC™ was never part of your death benefit. It was always independent of the cash value and life insurance contract and why it is NOT traditional debt or liability like most Lines of Credit. It truly is OPM (other people's money) working on your behalf - where you get to keep any net interest that then can accelerate your Compound Interest.
Save this email text and video, so the next time you hear someone get this wrong, you can help them understand what is right!
Send any of your questions to [email protected].
I'm Curtis Ray, Always Be Compounding™!
Website: https://mympi.com/
Schedule A Call With An MPI® Specialist: https://calendly.com/mpi
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