Insuring Success: The Secret Weapon that Fueled Iconic Businesses

What do prominent enterprises JC Penney, Disneyland, and McDonald’s have in common? The answer: Life Insurance.

At various moments in history, each of the above conglomerates were once privately-owned companies that turned to the cash value in their life insurance policies to help fuel and fortify their businesses. Perhaps you’re a business owner yourself and undoubtedly appreciate the importance of maintaining liquid capital for sustained business growth. If so, you’ll likely agree that the challenge often lies in securing these funds.

Enter a strategy that many astute businesses employ – an often-overlooked avenue providing easily accessible capital: cash value life insurance. Funding a customized permanent life insurance program presents a unique opportunity to build substantial cash value through compounded tax-sheltered growth. This cash value becomes a dependable source of liquidity, offering financial flexibility. A well-structured cash value life insurance policy can cater to a spectrum of financial goals. Let’s draw inspiration from various circumstances where these iconic businesses utilized permanent life insurance cash values to propel their businesses to even greater success.

Cashflow for Payroll and Expenses
In 1929, during the throes of the Great Depression, James Cash Penney turned to the cash value in his life insurance policies to meet payroll and daily expenses for JC Penney. This pivotal decision facilitated the company’s resurgence, and today it boasts an annual revenue of $12 billion.

Financing to Fund a Major Development Project
Fast forward to 1955, when Walt Disney faced challenges securing a sufficient bank loan for his ambitious Disneyland project. Undeterred, he leveraged the cash value from his life insurance policy to finance the creation of the renowned theme park. The Walt Disney Company now commands an annual revenue of over $80 billion. Can you even imagine a world without the Disney theme parks?

Funds to Buy Out Partners
In 1961, Ray Kroc, the visionary behind McDonald’s, used the cash value from his life insurance policies to buy out his partners, the McDonald brothers. These funds not only covered key employees’ salaries but also fueled the marketing campaign introducing the world to Ronald McDonald. McDonald’s has since flourished into a global powerhouse with over 40,000 stores in more than 100 countries.

A carefully crafted cash value life insurance policy offers financial security and acts as a conduit for business liquidity and growth. This strategy has been embraced by successful businesses throughout history and continues to be an effective tool today. Are you curious about how you can “insure” your success? Feel free to reach out to us and we would be happy to help.