Who Used Whole Life Insurance as their own Bank - Ray Kroc
Neil Smith - Sep 21, 2021
Ray Kroc the founder of McDonalds used his cash value in whole insurance policy to fund many of the expenses in the start-up phase
This is part two of three of well-known businessmen/entrepreneurs who were able to start, grow or save their businesses. As a business owner, that is why you should have plenty of permanent insurance.
In part one, we talked about Walt Disney and how he could not get any traditional lenders to buy into his dream of creating the happiest place on Earth. A place for parents to bring their families to be entertained by a now infamous mouse and a duck. He built his dream because he had a whole life insurance policy with cash value in it. He sold his house so that he would have something that would create money on the policy anniversary that could then be used to pay bills, hire more staff, etc.
In part two, we're going to talk about a famous brand name (more than the man himself). In this case, an entrepreneur by the name of Ray Kroc who wanted to turn a local hamburger joint into a national and then international company. His success didn't happen overnight. He also didn't draw a salary for 8 years (he put all his money back into the company).
To pay his key employees, he borrowed against his two permanent life insurance policies. They grew in value because of the annual dividends paid into the policies which increased the death benefits. These policies were also able to provide funds for a new branding campaign which led to the introduction of the now-famous mascot, Ronald McDonald. He used his policies as his own private family bank.
Had he not been able to achieve that early growth (which he self-funded), he would not have been able to achieve his dream of serving the billions of customers since he first opened the doors to McDonalds.
Learn more about how permanent life insurance can fit into a personal or business financial plan for your company by going to www.neilssmith.com. Contact me today!
Source: https://bankingtruths.com/awr-famous-entrepreneurs-whole-life-insurance-bank/ © 2021
Picture credit: https://www.istockphoto.com/portfolio/KumikoHiramaJapanPhoto?mediatype=photography Stock photo ID:1271705880