Q. I have a question about auto-banking with term life insurance. From what I understand, you can build up a cash balance, borrow on it, and then pay yourself interest. Is it worth it, or do I have to stay away and continue to use a bank?
A. In fact, it is a whole life insurance policy, not a term insurance policy. And this is an absolute scam.
Basically, with a whole life you pay about 20 times more for the same amount of insurance than with a term policy. The extra money goes into a savings account, and you earn next to nothing, even after you finally start building it. One of the ways they are presenting it now is the concept of auto-banking, where you can use your own money. It’s nothing magical or anything, because with a regular checking account you are using your own money.
My advice is to stay away from the company offering it and anything else they have. It’s a really bad product, and it’s a bad way to sell whole life insurance – which is a horrible product to begin with. No one, except the people in this company, believes or talks about it more positively.
Being able to borrow your own money? Is that so? Why the hell would anyone borrow their own money? It’s ridiculous!
Q. My wife and I are Christians and we have a successful small business in our town. Do companies have to tithe?
A. It’s a good question. Giving is never a bad idea, unless you do so irresponsibly and to the point of putting your family in financial jeopardy. As far as I know, the Bible only addresses the subject of tithing by individuals – not businesses.
Personally, I don’t give a tenth of my gross or net sales until I receive my paycheck. When this happens – that is, on profits that I will pay taxes on, or on wage income from my business – I give a tithe on the profits.
So, I can’t really tell you that I found Bible instructions for giving a tenth of your stuff. Hope this helps you!