Top 5 Businesses Saved by Cash Value Life Insurance
High cash value life insurance is a fantastic tool to help you grow your business and can provide the necessary capital to get your business off the ground.
In this video we will see how 5 companies were saved because the owners borrowed from their whole life insurance policies to help pay company salaries, expand their business or pay for marketing.
J.C. Penney
J.C. Penney, also known as James Cash Penney, was a successful businessman and the founder of the popular department store chain, J.C. Penney. In 1929, during the midst of the Great Depression, Penney faced financial difficulties and struggled to meet the payroll and daily expenses of his company. Rather than giving up and letting the company fail, Penney made a bold move to ensure its survival.
He turned to his life insurance policies, which had built up a significant cash value over the years. Rather than cashing in on these policies, Penney borrowed the money from his policies to keep his company afloat. This decision allowed J.C. Penney to weather the economic downturn and eventually bounce back from the Great Depression.
Today, J.C. Penney is a thriving business with an annual revenue of $12 billion. This success is a testament to the resilience and determination of its founder, J.C. Penney. Despite facing difficult circumstances, he found a creative solution and made the tough decision to sacrifice his own personal financial security for the benefit of his company.
Penney’s story is a reminder of the importance of adaptability and resourcefulness in the face of challenges. It also highlights the value of strong leadership and the ability to make tough decisions. Without Penney’s bold move, J.C. Penney may not have survived the Great Depression and become the successful business it is today.
Foster Farms
In 1939, Max and Verda Foster faced a difficult decision. They owned a small chicken farm, but they needed to expand in order to keep up with the growing demand for their products. They had limited financial resources, so they decided to take a risk and borrow $1,000 against their life insurance policy in order to invest in an 80-acre farm.
This bold move paid off in a big way. The Foster’s chicken farm flourished and eventually became Foster Farms, a well-known and respected brand in the poultry industry. Today, Foster Farms’ products are sold all over the world, thanks in large part to the initial investment made by Max and Verda Foster back in 1939.
The story of Foster Farms is a testament to the power of hard work, determination, and smart business decisions. Despite facing financial challenges, the Fosters were able to take a risk and make a strategic investment that ultimately paid off. Their success serves as an inspiration to entrepreneurs and business leaders everywhere.
It is also a reminder of the importance of life insurance as a financial tool. In times of need, a life insurance policy can provide a safety net and serve as a source of financial security. For the Fosters, their life insurance policy allowed them to take a risk and invest in their future, ultimately leading to the success of Foster Farms.
Disneyland
In 1955, Walt Disney had a dream to create a theme park where families could come together and enjoy immersive experiences based on their favorite movies and characters. He knew that this project, Disneyland, had the potential to be a major success, but he faced a major obstacle: he was unable to secure a large enough loan from a bank to finance its creation.
Rather than giving up on his dream, Disney came up with a creative solution. He borrowed against the cash value of his life insurance policy, using it as collateral to secure the necessary funding. This risky but ultimately successful move allowed Disney to bring his vision to life and create Disneyland, a place that has brought joy and entertainment to millions of people over the years.
Today, The Walt Disney Company, founded by Walt Disney, has an annual revenue of nearly $70 billion. This success is a testament to Disney’s vision, creativity, and determination. Without his willingness to take a risk and borrow against his life insurance policy, Disneyland may never have come into existence.
Disney’s story is a reminder of the importance of perseverance and the ability to think outside the box in the face of challenges. It also highlights the value of life insurance as a financial tool that can provide security and serve as collateral in times of need.
McDonalds
In 1961 when Ray Kroc bought out his partners (the McDonald brothers) he used cash value from his two life insurance policies to cover the salaries of key employees. He also used the funds to pay for the marketing campaign for his new mascot, Ronald McDonald. The franchise has since grown to over 37,000 stores in over 100 countries.
In 1961, Ray Kroc faced a major turning point in his career. He had been working as a salesperson for the McDonald brothers, owners of a successful fast food chain, but he saw an opportunity to take the business to the next level. Kroc decided to buy out his the brothers and become the owner of the franchise.
However, this was no small feat. In order to finance the acquisition and ensure the continued success of the business, Kroc needed to come up with a significant amount of money. Rather than giving up or seeking a traditional bank loan, he turned to a creative solution: he borrowed against the cash value of his two life insurance policies.
This decision allowed Kroc to cover the salaries of key employees and pay for a marketing campaign for his new mascot, Ronald McDonald. The campaign was a huge success and helped to drive traffic to the franchise. As a result, the McDonald’s chain experienced rapid growth and expansion. Today, there are over 37,000 McDonald’s stores in over 100 countries, all thanks in large part to Kroc’s vision and determination.
Kroc’s story is a testament to the power of hard work, creativity, and the ability to take risks in order to achieve success. It also highlights the value of life insurance as a financial tool that can provide security and serve as collateral in times of need. Without Kroc’s willingness to borrow against his life insurance policies, the McDonald’s franchise may not have experienced the same level of growth and success.
The Pampered Chef
In 1980, Doris Christopher had a dream to start her own kitchenware company. She saw a need for high-quality, practical products that could make the lives of home cooks easier and more enjoyable. Christopher had a background in the culinary industry and a passion for cooking, but she faced a major obstacle: she didn’t have the financial resources to get her business off the ground.
Rather than giving up on her dream, Christopher turned to a creative solution. She borrowed against the cash value of her life insurance policy and used a policy loan of $3,000 to start her new company, Pampered Chef.
Christopher’s decision to take a risk and invest in her dream paid off in a big way. Pampered Chef quickly became a well-known and respected brand in the kitchenware industry. Christopher’s products were popular with home cooks and helped to revolutionize the way that people prepared meals in their own kitchens.
In 2002, Pampered Chef was purchased by Berkshire Hathaway, a holding company owned by the renowned investor Warren Buffet. The company was sold for $1.5 billion, a testament to the success and growth of Christopher’s business.
Christopher’s story is a reminder of the importance of perseverance, hard work, and the ability to think creatively in the face of challenges. It also highlights the value of life insurance as a financial tool that can provide security and serve as collateral in times of need. Without Christopher’s willingness to borrow against her life insurance policy, Pampered Chef may never have gotten off the ground.
What would you use your cash value life insurance policy for?
Please comment below.
Why use your policy to fund your business ventures?
Here are 5 reasons to use your whole life insurance policy to fund your business venture:
The money you borrow from your policy is tax free
The government does not tax money borrowed from your whole life policy and in fact no one can take your policy from you even in bankruptcy or divorce.
You only have to pay 5% interest on the amount you borrow, compare that to a credit card or bank loan.
Credit cards charge up to 25% and bank loans can be up to 14% or more. A 5% interest rate is small in comparison.
You are making around 7% interest on the total amount in your policy even when you borrow so you are still making money if when paying 5% on a loan. Especially if the total amount of your account is large and the amount you borrowed is small. This means the interest charged on 5% of $2,000 around $100, is considerably smaller than the interest paid on $100,000 which is $7,000.
You don’t have to pass any credit checks to borrow from your policy. The money you borrow from your cash value life insurance policy is your money so you can borrow from it anytime you want.
Requesting a loan is easy and fast, you get your money usually within a week. The request process is simple and can be done online. You can also pay back the loan online as well.
What strategies can you think of to grow your money even more?
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(This article is for informational purposes only and should not be considered financial advice.)