These FAQs are intended use by individuals who have reviewed the video series educational “COMPOUND INTEREST: THE RETIREMENT YOU DESERVE” and have a foundational understanding of the MPI® Secure Compound Interest Strategy, including the use of cash value life insurance contracts, and the guarantees, assumptions, features, and risks associated with them.
The MPI® Secure Compound Interest Account is designed as a permanent life insurance contract to bring life-long benefits to you and your beneficiaries. There can be consequences if you were to lapse, surrender, or cancel your plan. The attached video covers what happens if an MPI Policy is terminated.
The MPI® Secure Compound Interest Account has 3 core pillars of success that by working together, deliver the following: Security of life insurance, growth of the S&P500 or other stock-based strategies, and leverage using the RELOC™ (participating loan) to provide enhanced Compound Interest potential. Watch the following video to see how MPI can deliver the Triple Advantage of Compound Interest.
Does the MPI® Secure Compound Interest Account blow up in a market collapse such as 2008 like many other investments? No! Watch this to learn how the 0% Floor Feature protects your account value in a down market.
When you pass away, the life insurance contract amount plus the full cash value, which is net of any loans or RELOC already, pays to your designated beneficiaries as the death benefit. The longer your MPI Secure Compound Interest Account has had to mature, the larger the death benefit can be for your family, heirs, and beneficiaries.
The MPI Calculator does not adjust for inflation. To combat inflation, it is always a good rule of thumb to save a % of your income, rather than a flat amount. As inflation increases over time, so should income levels allowing you to save more money.
The MPI Secure Compound Interest Account is a life insurance contract. Therefore, limits are based on your health, your income, and your family (those that would need resources if you were to die prematurely). Assuming you qualify, the minimums can be quite low, typically around 10x your age as a monthly commitment AND maximums quite high meaning plenty of flexibility to accommodate your future/retirement plan.
Because an IRA, 401(k), and other typical retirement plans are “qualified” according to the IRS, they are not eligible for rollover status. Therefore, withdrawing YOUR money before reaching the age the government has chosen, you would be susceptible to penalties, fees, or taxes – perhaps all three.
The contributions you make to your MPI® financial plan are not tax deductible because they are made with post-tax dollars, much like a Roth IRA. However, all your distributions and retirement income from the plan will be tax-free.
As a life insurance contract, the MPI Secure Compound Interest account requires that you meet the minimum age in your state to legally enter a contract, usually 18 years of age. A parent can begin a plan for their child typically after 15 days old.
There are 4 standard payment options with an MPI Plan: Monthly, Quarterly, Bi-annually, and Annually. MPI® Unlimited suggests that payments be made monthly to create a savings habit of “Pay Yourself First.”
No two divorce settlements are the same. Life insurance policies may be part of a qualified domestic relations order (QDRO). This may mean that one spouse is required to continue to make payments on behalf of the other spouse, or that the cash value of the policy be divided amongst the spouses. After a divorce, we recommend reviewing your beneficiary designations to ensure that the death benefit passes to the individual(s) you intend.
Financial freedom is an individual accomplishment. In order to provide maximum family security, we suggest both spouses have their own individual MPI® Plan. If additional savings are available after parents have started their plans, MPI Children’s plans can provide a path to financial freedom for the complete family.
A key reason we built MPI using the IUL Life Insurance Policy structure was not only to create a way for people to save more, but also to protect them from the uncertainties of life, including losing a job or falling on hard times. If this were to happen, your policy can likely sustain itself for a period of time. This is when you would call your MPI Certified Advisor to discuss your choices, review your future, and choose a strategy to move through the near-term challenge toward the future you envision.
Your MPI will not cancel if you get sick. If you are to miss a payment for any reason, please contact your MPI Certified Advisor immediately to review your situation and determine the best path moving forward.
The MPI Secure Compound Interest Account is a life insurance contract that can require a medical exam and underwriting. This process can take up to 8-12 weeks in some circumstances. Health does play a vital role in the approval process of an MPI Plan. If you do not get approved, there are other options for you or your family to take advantage of Compound Interest. It is important to begin the no obligation underwriting process as soon as possible to determine your best route.
The cash value of your MPI Secure Compound Interest Account is accessible without penalty for any reason at any age. Because of this feature, the cash value in your MPI plan can be used as an emergency fund as well as many other uses.
No. The MPI Secure Compound Interest account is not available to residents of the state of New York. If you split residence with another state and are also a legal resident of that other state, then we can discuss your eligibility.
As a starting point, we recommend you pay yourself first by saving at least 10% of your gross income, starting as early as possible, and saving throughout your earning years. As you accommodate this savings rate, we encourage people to continue to increase their savings rate as their income increases. The more you save and the earlier you can apply compound interest, the sooner you can achieve the retirement you dream of.
Your MPI Secure Compound Interest account is not insured by the FDIC (Federal Deposit Insurance Corporation), which applies to deposits held in a bank. Your account is a life insurance contract between you and the insurance company.
Which is a better financial decision? 15 year mortgage and then start saving for retirement or a lower payment 30 year mortgage and begin saving immediately? Watch this side-by-side for a complete breakdown.
The MPI Plan is intended to be a life-long contract between you and the insurance company. Early cancellation to this plan could result in a surrender charge. Watch this video to understand the difference between a surrender charge found inside the MPI Secure Compound Interest Account and an access penalty found in many traditional plans such as the 401k/ IRA.
Buy term, invest the rest is a common investing philosophy promoted by the mainstream financial advising community. But is it your best option? Compare this philosophy with the MPI Secure Compound Interest Account to learn that there are much better options.
What is the difference between an IUL and MPI? Watch this video to understand how the RELOC feature (Participating Loan) can increase your retirement income by up to 2x or more over the traditional IUL
Whole Life Insurance vs MPI… Which strategy can bring you more value? Through the triple advantage of Compound Interest, you can increase your retirement income by up to 5x over the traditional Whole Life Insurance plan.