Generating extra income to our budget is a constant desire for many of us. Some financial specialists suggest using passive income to achieve this, but most of us are not familiar with the term and the process to follow. Passive income is the money that we can receive on a regular or recurring basis without having to dedicate an amount of time or work to get it.
There are different ways to do it, but one of the ones that generates the most security and confidence is to get a life insurance policy that gives you multiple benefits such as the creation of a savings culture, education plans, retirement or having a source of support to face unexpected situations (an illness, accident or death).
There are different insurance options, but buying one life insurance policy It can be an alternative that leads you to that goal because it provides you with permanent protection, accumulation of values and a series of benefits that in the long term will help you have a better quality of life.
in BMI the options to take out a policy are many, but Universal Life and Indexed Life are the most suitable because index funds It is one of the most used mechanisms to obtain additional income in the medium and long term.
You must be clear that with a policy of Universal Life you can combine two important factors: protection and savings. In addition, it is excellent for accumulating values at a guaranteed interest rate, however, many will wonder what is the difference with having a savings account in a bank?
The answer is simple, a life policy provides value accumulation at a competitive rate and higher than bank rates and is not subject to the volatility of the stock market, which allows you to pay off the policy in a few years. Another benefit is that it provides you with liquidity by allowing you to make loans and partial withdrawals on the cash value.
Now, in the option Life Indexed Earned value is based on the performance of a stock index each calendar year, but you have the benefit of getting a maximum of 12% if the stock index is above the 16% (ceiling) and the 1% guaranteed in years of negative performance, that is to say that there is never a choice of ploss.
Additionally, it offers you an initial participation factor of 70% and guarantees a minimum of 40%, but also the client who wishes to acquire the policy is provided with a plan that projects values based on the historical performance of the index during the last 20 years.
A grounded example could be the following: suppose that José Pérez (fictitious name) is 40 years old, is a non-smoker and wants to obtain a half a million dollar index life insurance policy, also wants to pay premiums until age 65 and receive a monthly income of $3,000 from the 70 to 90 years. How could this be possible? The answer is simple, he should pay an annual premium of $6,850 for the 25 years you want and the result is that he could receive in life 720 thousand dollars ($36,000 per year of rent received for 20 years), but the most interesting thing is that you only have to pay BMI $171,375 which are equivalent to the target premium.
These amounts can be adjusted to the needs of each client, if any interested person wants to lower the annual amount of the premium, it can perfectly be done only that the benefits, that is, the amount of life insurance and the income that they wish to receive, would drop.
In conclusion, there is a widespread perception that to generate this type of income you need to invest exorbitant amounts and the time to enjoy the results is too long, but you must be clear that time passes very quickly and by being proactive you can be guaranteeing your future and that of your family.
If you want to feel supported and have the peace of mind knowing that your family's future and assets are protected, our wide range of life insurance plans may be an option to help you achieve this because BMI provides multiple options that are adapt to the needs and financial planning of each client.
