Cash value build up via credit cards?

[adjusterjack]

Besides, with the outrageous interest rates on credit cards you'd end up in a deep hole just making minimum payments every month.

 

[LGilmore]

I think the OP is looking for a way to "sell" here not to do for themselves. That said, if they are trying to do it for themselves, I would say they are really stupid and should leave this business. Pay the annual premium with a CC, then pay minimum payments.. What happens in year two when you haven't fully paid for year one yet? Then three when you haven't paid completely for one or year two? Wash rinse repeat.....SMH

Using this as a sales track is simply wanting to be sued and fined and possibly jailed.

It is one thing for a client to come up with this idea on their own. But god help the agent who puts this idea in their head.

Now I know of people who do this to get air miles... but they pay the card off the next month. Much different than paying the minimum payment at anywhere from 15-23%.

 

[VolAgent]

1 - "I was told" is the most dangerous phrase in the English language.

2 - Next time anybody tells you that something is illegal or "it's the law" ask them to cite you a statute number. They invariably won't be able to which will cast considerable doubt on the accuracy of the assertion.

If you read the rest of the sentence, it is quite clear I don't put much stock in it. I know other companies that gladly accept credit cards for life policies.

 

[adjusterjack]

Now I know of people who do this to get air miles... but they pay the card off the next month.

I pay my car and home insurance with my credit card to get the cash back rewards and then pay the bill in when it comes in. CC companies don't make a nickel off me. You can make money off your credit cards if you don't pay interest. I just got a new one that'll pay me a bonus of $150 for spending $1000 in 3 months. Easy peasy.

 

[Enter the Race]

maybe he customer just wants the American Express cash rewards.

 

[Allen Trent]

While they dont make as much off you as others that carry balances, they still make money off you. They charge the business a couple % for accepting their card & the business in turn has raised their prices to offset their ongoing costs to accept cards. Especially the more expensive cards to accept like AMEX

 

[FinalExpenseDojo.com]

North American accepts credit cards as well. I essentially make an extra 2% on my IUL by paying it every month with my Fedility credit card. The 2% cash back goes automatically into my Fedility retirement account.

#winning.

 

[khang.mis]

If the OP only had a couple of posts, then I'd wonder if it was a consumer asking. But with 68 posts... this has to be an agent asking and considering a viable way to sell permanent life insurance.

I actually have a really good explanation for all of this.

I'm glad to say I have retired from the insurance industry after 13 years. At age 31 I realized this is not what I want to do the rest of my life. I have since pursued the house flipping business. During this journey I learned of a concept called "Velocity Banking" which is a method of paying a 30 year mortgage in about 5-7 years.

I strongly suggest you YouTube a video about Velocity Banking.

The velocity banking concept inspired me to think of how I can maximize the infinite banking concept. No more insurance sales thanks!