Building The Financial Foundation: Part III

Infinite Banking is Stability

 

Part 3 of a 3 Part Series

 

There are many reasons to get excited about purchasing your first Specially Designed, Dividend Paying, Whole Life Insurance Policy for Infinite Banking purposes. In the blog Getting Started With Infinite Banking, I covered the basic benefits of the death benefit, cash values and policy loans, and taxes.

As a millennial myself working mostly with millennials, however, I understand this information can be hard to relate to. If you’re reading this blog, it’s likely you’ve done some research into different financial tools so you can have more control over your finances and ultimately have more time for the things you value most in life – and yet you’re still looking!

That is why, attempting to turn life insurance from a need product to a want product, I will explain how this specific financial strategy works beginning with my own personal values and experiences.

I believe Infinite Banking is more than just technical knowledge and results, which can be difficult to get through even if you have a master’s degree in finance. I believe Infinite Banking is first and foremost about the “soft reasons” that are hard to see and even harder to measure financially speaking.

My hope is that through this educational process, you will come to know the same peace, clarity, and stability that I have experienced in my own financial plan and life.

When I took out my first Infinite Banking policy in 2016, I used to just think it was a smart thing to do. It made sense to get life insurance in place for financial protection purposes and, having the ability to use the cash values to run my business expenses through, why wouldn’t I?

It wasn’t until a few years in however, with approximately 8 policy loans on the books, that I could articulate exactly why this made so much sense to me…

 

Infinite Banking is Stability

 

Again, the foundation of an Infinite Banking Policy is dividend-paying whole life insurance and, to add on to this definition, it must be specially designed as mentioned above. To add on even further, it must be purchased from a mutual insurance company, where mutual companies often have long-term financial goals in mind versus publicly owned companies that can be caught up in meeting quarterly quotas.

Given that the insurance company is responsible to meet their promise to you the insured, they base their assumptions on premium rates using a science that was developed alongside the industry called ‘actuarial science.’ Actuarial science applies mathematical and statistical methods to assess risk in insurance, finance and other industries and professions.

Then, they overcharge your premiums for investment and administrative purposes.

Then, they keep the investment returns over and above what they need to meet their required expectations in a contingency fund in case there’s ever a down investment and/or administrative year.

Life insurance companies are also backed by their own insurance called reinsurance, and consumers are protected by Assuris in case a company ever becomes insolvent.

All in all, dividend-paying whole life insurance is very stable, and because of that, with an Infinite Banking Policy you automatically have:

  • Guaranteed death benefit
  • Guaranteed cash values
  • Guaranteed level premiums
  • Guaranteed pay period

These four reasons alone give me a great amount of stability.

What’s even better is that as the owner of an Infinite Banking Policy, I am a part owner in the insurance company itself and as such, participate in any declared annual dividends. These annual dividends are a return of that overcharged premium from before and can be redirected into my policy to purchase additional paid up insurance.

These dividends effectively increase the minimum guarantee for what I can expect to receive as a death benefit and yearly guaranteed growth in cash values in the future.

For me, life insurance is the answer to having more time for the things I value most in life like relationships with people and making a difference in my world.  

With the financial stability of an Infinite Banking Policy, I can relax and enjoy my time spent at work teaching you about all things Infinite Banking.

 

Can You Relate?

  1. Make a list of the things you value most in life. How can having whole life insurance help you?

 

Building The Financial Foundation

 

Seeing the results of my first Infinite Banking Policy over these past few years has been a game changer for me in becoming more vocal about Infinite Banking.

Since 2016, my guaranteed death benefit has increased from $106,857 to $148,473 at the time of this writing in 2019. I think about how the additional $41,616 of paid up insurance will make a difference for my loved ones one day.

Then I think about how if I had purchased a regular dividend-paying, whole life insurance policy, not a specially designed, dividend-paying whole life insurance policy, I would currently have access to exactly $0 worth of cash values but, instead, there is $4653.92 worth of cash values in my policy and I have access to using 90% of it.

The cost of this plan is $291.90 in premiums every month. Having peace, clarity, and stability in my life, however, is priceless.

With an Infinite Banking Policy you can:

  • Build wealth successfully, safely, and consistently
  • Build a wealth that’s designed to last for generations
  • Overcome a mountain of debt in Canada

So be kind. Do something nice for your family, business or charity and get the life insurance coverage you need for financial protection purposes and you too can benefit.

 


 

Please note:

Infinite Banking and whole life insurance are two separate and equally complicated topics to break down and discuss. Right now, my hope in writing these blogs is to build a basic understanding for Infinite Banking and while doing so, offer simple explanations for things and refer mostly to uncomplicated insurance plans. I will touch more on estate planning, corporate owned life insurance, and planned-giving in future blogs – always for education purposes and not intended as financial advice. Thanks for understanding!

 

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All the best in your financial journey,

 

Ashley Lalonde