Whole Life Insurance for the Purposes of Banking

Becoming your own banker is the concept of creating wealth by implementing the banking process into one’s financial life, through the use of participating, dividend paying, whole life insurance. But why whole life insurance? Isn’t that just too expensive? How could it ever work if you’re paying for insurance?

Banking is defined as, “engaging in the business of keeping money for savings and checking accounts or for exchange or for issuing loans and credit etc.” Most people are on the side of depositing money and borrowing, while allowing the bank to use their money to issue loans and credit, much of which goes right back to you as the borrower, but you have to qualify to get it, and pay interest too. But let’s take a look from the banker’s point of view, the lucrative part of the business. What do you do the moment you get the deposited money as a banker? Simple, you find a borrower for the money. You want it to grow. As they make their payments you try to find more places to put that money, so every payment is now making money, and then the payments from those payments, etc. This is know as the velocity of money. Every dollar deposited will yield multiple returns.

So the questions becomes this, if at times you are the depositor, and the borrower, why not become all three? The depositor, the borrower, and the banker! The only difference is you won’t have to pay a middle man to give you the money that already belongs to you! So the outcome will be making your money grow safely, while maintaining liquidity use and control. Becoming the banker is very lucrative, but most importantly, it is a safe use of your money, and you will no longer lose interest to banks. Here is a real example that proves that the METHOD you use can make a large impact on your financial worth, and that the banker always wins.

Car Purchase- $30,000

Paying Cash-

If you pay cash for your vehicle, it looks like this:

Purchase $30,000
Car Value $15,000 (after 5 years)

Adjustment to net worth: -$15,000

Financing:

By financing the vehicle through a banking institution it looks like this:

Loan $30,000
Interest Rate 8%
Years 5
Payment $608
Total Pmts ($36,500)
Car Value $15,000

Adjustment to Net Worth: -$21,500

Becoming Your Own Banker

Borrow from “MY BANK”- $30,000
Interest Rate 8%
Years 5
Payment $608
Total $36,500
Car Value $15,000

Increase $51,500

Minus the initial savings
Adjustment to net worth: Positive $21,500

So we can see that by becoming the banker, and using our own money like a bank would, we increase our wealth, and we do it safely because we are in control. We are most likely going to buy multiple cars in our lifetime, so you have the choice to be negative, or positive after those purchases.

Becoming your own banker is not about whole life insurance, but the banking process, so the question still remains, why whole life? The reality is we have looked at other options, an interest bearing savings account, retirement plans, and others, but nothing comes close to the power of whole life insurance as a banking solution, when done right.

Traditional whole life policies require the lowest premiums and emphasize high death benefit, leaving minimal cash value. But de-emphasizing death benefit, and emphasizing high cash values, you will create a self funding system in 4-6 years, and you will have cash values nearly equal to the dollar amount you have put in, including your cost of insurance. This is where it gets exciting. At this point you have a self funding system, meaning no out of pocket premium payments. Within the policy your money will grow tax deferred, and you can draw it out tax free as well. As the policy holder, you have priority over the money in the policy, meaning you have complete liquidity, use, and control. You may borrow it at any time, and because a policy owner is also part owner of the company, that interest will be credited back to you. You are also entitled to part of the companies growth, in the form of dividends. Because dividends are not a factor of cash value, you could borrow all your cash value and still get your dividends at the end of the year, meaning that you are essentially getting a return on your money, even though you are using it for different purposes. This creates exceptional growth within you policy, and is and added benefit that no other vehicle provides. On top of all this, you will always have a death benefit that can be delivered tax free to your  beneficiaries. If they learn the concepts correctly and place this money into additional polices, it can be said that every dollar will never see taxes again.

The advantages of whole life insurance for the purposes of banking is exceptional. Banking is the focus, whole life just happens to be the best place to implement it. Its advantages are incredible as you can see. You can literally recapture the cost of everything you purchase.

Contact Us for more info, or a free webinar.