Is Infinite Banking A Good Idea

Hey, this is Laurel again. Now we are on part three of a four-part series. Super excited to have you learn more about infinite banking and what it can do for you and your family. Is infinite banking a good idea? Well, if you want generational wealth, then you'd say yes. If you want to learn to become your own bank, you say yes. Today, I'm going to break down three very specific things about infinite banking. Number one, what is it? How can it actually help you? Number two, where do you understand and practice due diligence within your policy and the scope of what you can buy? You literally, we're going to teach you can buy real estate, other assets inside the policy, very uniquely done and high strategy for generational wealth and tax planning. And number three, the types of contracts that are associated to infinite banking, because you actually become a shareholder of the company. So I have with me today, Jason Henderson, who's an expert in infinite banking and how to use these policies to your highest advantage for liability protections, tax strategies, and cash. Let's go listen into my interview with him. I have with me today again, if you've not seen our first two, go back two days and get caught up, but it's a good foundation for today, which is part three of a four-part series of how to be your own bank. Dr. Jason Henderson is with me and welcome back. Thank you, Laurel. It's a pleasure to be on your show. It's exciting. You know, infinite banking, the question is really, is it a good idea? So what is it? That's a good idea. Some of this might be a little duplicitous to one and two, but part of the reason I want to do this four-part, Jason, I want you to dig deeper, tell more about like the fact that they're a shareholder of this company. It's really different than any other kind of insurance. A lot of you are, you know, you see all the ads, I won't name the companies, but their death insurance policies, their term that are going to burn out and really that money's just wasted. So let's talk about the benefits, the pros. It's a great idea. How do you do and where do you practice due diligence and what types of contracts? So this is where you're getting a little more, you know, into the meat of it. What are the kind of contracts associated with infinite banking? So those are the three things we're going to talk about. So let's start with why is it a good idea and deepen that. Okay. Before I get there, you mentioned a little key important fact, and that is there's a lot of people out there that are attempting to use this jargon, if you will, infinite banking, infinity banking, bank on yourself, lots of different people out there. And they attempt to use a different contract and different companies than what the originator of the idea had proven and can be proven over and over again. What is the absolute best? There's roughly 2000 plus life insurance companies out there. And when we narrow it down to the four criteria of the type of business we want to use, the first one is we want a mutual company, which means when you become a policy owner, you are a part owner of the company that will narrow it down to roughly 30 companies. The second thing is we want them to have paid a dividend every year. In other words, they've been profitable every year for at least 110 years consecutive. Well, what's so magical about 110 years? Well, think about it. There's two world wars. There's the flu pandemic of 1918. There's the depression, which was pretty downer from a financial point of view, and several other things in the 60s and 70s, stagflation, et cetera, et cetera. You want a company that has a culture and the ability to be profitable every year throughout that whole track record. Number three, there needs to be a special sauce called paid up additions. And number four is we want a company that will actually support you in your quest to be your own banker. Now, when we have those four criteria, there's about a half a dozen, and we represent every one of those. And so when you have all the pieces in place, it's a fabulous idea. The world starts to open up to you. You start to think in and versus or. Let's say you have a certain amount of money and you think, do I buy my car or do I put it in my insurance policy? And it might be a downer, or you might say, do I finish out my basement or do I put it in my insurance policy? Well, guess what? You start to think and. I'm going to put it in my insurance policy and fix my basement. I'm going to put it in my insurance policy and buy that car, right? Now you have more choices. And so is it a good idea? Absolutely. Yes. With the caveat based upon what we talked about yesterday, people are under control. They don't steal from themselves. They respect the system. In the event you become your own banker with me and talk to us by going to InsuritySystems.com, what you're going to see is you're actually going to become my partner. I'm not going to show you to a company as something where I am not already a part owner. So we were going to be partners. And I have a vested interest, if you will, in myself and in my own kid's future to help you make good decisions and to make it right for you. I don't want you to go out of business. That would hurt the overall company. So I have a very strong interest in making sure that you are successful. And that would be part of doing your due diligence. Many people, well, in fact, I'd say everyone has told me two things. And one of them is, this is too good to be true. The reality is that is not a reason to stop investigating it. It's a reason to continue to investigate it. I had a professor of agricultural economics as a client. He's passed away now. However, he tore this thing apart, asked questions, went up, down, backwards, forwards, everything. He built spreadsheets, he did numbers, he interviewed people, and he attempted to prove it wrong. Could he find things wrong, you know, negative things wrong about it? Yeah, there's some negative things wrong about it when people don't do the right thing, right? However, the concept itself, he was unable to prove wrong. And then he finally got involved. So I think due diligence is nothing to be afraid of. In fact, I welcome it. I want people to do that. I've heard you say before, you know, you can go on the internet, you can find anything you want. You call it the bathroom wall. And same thing here. You're going to find some negative stuff about that. That's fine. There's people that are finding things that are bad about it. There must be some, a lot of good about it. The only reason you can find some bad about it is the fact that there is a lot of good about it. Well, and I would say the same thing, you know, when people say, well, you know, Laurel's millionaire, you know, plant this, this whole thing doesn't work. And it's like, really? We've been around almost, well, well over two decades doing this work. How can it work for so many? And again, the people who are not disciplined, don't do the work. That's where, you know, you're going to see some negativity, I think in anything. Talk about the contracts though. There's types of contracts that are associated with it. Let's dig deep into that. Yeah, let's do. So let's upfront, get rid of one of those contracts and that's term insurance. Term insurance is not life insurance. It is been mischaracterized. It is simply death insurance. Like your accident insurance in your car, it only pays out when there's an accident. Fire insurance on your house only pays out when there's a fire. Term insurance only pays out when somebody dies. It truly is death insurance. So that contract is off the table. Now, besides that contract, there's several other contracts that from single premium life insurance to whole life insurance to a whole gamut of universal life, whether that's VUL, IUL, EIUL, et cetera, et cetera. And all of those are, have cash value. Now, what I said earlier about the four criteria about becoming an owner of the company, ULs does not have that particular distinction. Whole life policy, you are in higher position, if you will, almost like in the first position, if you will, of ownership and, you know, debt or whatever with the company, that's where you want to be. You need to have the right contract. You want a contract that's built to last. In other words, something that's built in such a way that the company takes most of the risk and they're the ones that are ensuring you that that contract's going to be around when you're 25, 55, 95, and 105. They're still going to be around. That's the kind of contract we want. Not a contract where most of the risk is pushed back from the insurance company back to the individual. And now it's up to the individual to make sure that that contract stays in force. That's what happens with ULs. All the risk is transferred back to the individual. And that's simply not the kind of contract you want to have. Let me give you an example, maybe a visual here. In my garage, my imaginary garage, I have a 1975 VW Bug. And all I'm going to do is I'm going to take the shell off and I'm going to put a new shell on it and make it look like a Porsche. Now, Laurel, is that still Porsche or is that still VW? Still VW. Right. Same engine, same chassis, right? A UL is built on a chassis that's analogous to one-year term insurance. What do we say about term insurance? Don't count it particularly like that. What happens is each year, the cost of that insurance goes up and up and up. And what my experience has been is given human nature towards when people start to be 55, 60, and older, the premiums that they're contributing is less than that one-year renewable term insurance and it starts to cannibalize itself. In other words, the cash value is going down year after year after year, even though you're putting money in. So at a point where you're going to be, wow, I've had this policy for 35 years and I have no cash value. And it collapses. It either goes away or you get a letter like my cousin got just about six months ago that actually said either this policy will collapse or you need to contribute six times what you've been contributing thus far. Oh my gosh. Yeah. Super downer. I have a client over the mountain here that it's an older couple and they're on fixed income. They didn't get it from me, but they're on fixed income and got a similar letter. It's much higher than six times. What are they going to do? All of a sudden, the wife will not have any protection in the event the husband dies prematurely. Very scary. Yeah. It's a serious conversation. And again, we're going to wrap up part three of four. Be back tomorrow to talk more about how long is it not only existed, the depth of security that you're going to get with this. We're going to come back to that. Make sure you subscribe to this channel right now. Click the notification button. And again, I want you to share with another five people. Like let's get this word out that there's a totally different way for you to become your own bank and you don't have to be super wealthy. Just start like today. Right. And have a session with Jason in the show notes. I want you to go to InsuritySystems.com. Get our report. Make sure you've scheduled an appointment and make sure your family members are scheduling appointments. So I'm going to make sure that my son who's now 23 and has an appointment with Jason is getting his all set up now that he's onto a new chapter of his life. So it's important stuff and a big step for all of you to take. If you have any questions, go to AskLaurel.com. Always over there. We are 24 seven answering questions from anyone who texts or calls or puts it into the AskLaurel.com little box right there. It just says, any question, make a request. We'll be back tomorrow.