Is a 770 account meant only for the ultra-wealthy? Well, how about for the ultra-stupid and pardon our reference there. So why is it such a bad idea? Because this account is nothing more than another deceptive way to sell a whole, universal or variable life insurance policy.The sad truth is that fewer Americans today own life insurance than at any other point in the last 50 years and the amount of coverage they have is the lowest ever. It’s really distressing and scary that Americans are not properly insured and as financial advisors, that is the most fundamental thing we are concerned about with respect to the financial well-being of a typical family. And no, we are not insurance salesmen and don’t make money selling life insurance. The point is that you and your family need to be protected.
So there is a genuine and legitimate need for life insurance and accessing it has never been easier and cheaper. Unfortunately there are still a lot of insurance agents in this country who make their living selling high-commission insurance products that are whole, variable or universal life. And with increasing awareness and education surrounding these products, people have learnt to resist the sales pitch of these frankly diabolical policies that are guaranteed to lose money for them. And there comes the 770 account, a very creative way to sell a very old product. The only people who tout these are the insurance agents and the companies behind them whose products they help sell.
So stay away. Term-life is the only insurance you need. That will free up the cash you need to devote to other investments.
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