How To Become Your Own Banker Using the Power of Whole Life Insurance
In this post I’m going to share with you the secrets of private family banking and how to become your own banker using the power of whole life insurance. Keep reading to learn the secrets for creating generational wealth for your family.
What if you and your family never had to depend on a bank or finance company ever again? If that sounds interesting to you, then keep reading, because I’m going to explain in simple terms, Private Family Banking, and how you can become your own banker.
What is Family Banking?
When discussing Family Banking, we are referring to the method of using permanent, dividend paying, cash value life insurance policies to create a multi-generational banking system.
This Family Bank is private, and grows automatically while shielding your dollars from predators. It also provides opportunities for family members to participate in growing the family’s wealth by financing their major purchases, and possibly investments, without traditional credit reporting.
How To Practice Private Family Banking
- You use available savings and cash-flow to build your own ‘bank’
- You finance major purchases through your ‘bank’ with loans
- You repay your ‘bank’ interest the same way as a traditional bank
- You can build a system of ‘banks’ to increase your family’s wealth
Private family banking is not a physical bank. it is a thought process that involves the functions of a bank using custom designed life insurance.
Family Bankers Secrets
The elite and wealthy have understood the secrets of banking for years. Think of the Rockefellors, Vanderbilts, Kennedys, Morgans and Rothschilds.
In more modern times, there’s another famous family you may have heard of that used private life insurance to finance their empire, Walt Disney.
Walt Disney used funds from his life insurance policy, after the banks refused to lend him money to start a theme park, the now famous Disneyland.
To understand family banking, it’s imperative to first understand how your money flows. Our money flows through our lives and throughout the world, just as water flows through our bodies and the oceans.
Your ability to control your cash-flow is the key to understanding how to become your own banker.
The very first principle that must be understood is that you FINANCE everything that you buy – you either pay interest to someone else or you give up interest you could have earned otherwise.” ~R. Nelson Nash
The Problem…
The problem is that all these items are financed by other banking institutions. This means that the interest portion of every dollar spent is perpetual. The volume of interest is the real issue, not the annual percent rates.
The average American family spends about 30% of their income on interest and fees. Compare that to the savings rate of most Americans of about 5% and you can see the discrepancy.
There’s a huge headwind overpowering our ability to create wealth. So, if we could change those ratios to where we were saving 20% or more of our income, while reducing our interest payments, then we could create a perpetual tailwind.
Some of you may be thinking that you pay cash for all of your major purchases and have no need for finance. That’s fine, but the problem is when you pay cash, you lose the ability for that money to ever work for you again. Once it’s out of your system, it can’t earn a return for you or your family, it’s gone forever.
The Solution
Private Family Banking can be the solution to your financial problems. You can have your money work harder by providing you with protection, savings and financing options.
You can create your own system for financing all of your purchases over your lifetime, where you recapture payments that you would normally make to others.
Learning how to redirect those payments into your own financial system is what makes the difference. This can be achieved over time with practice and help from a professional.
How Family Banking Works
Family banking works best through a custom designed, dividend paying, participating whole life insurance policy from a mutual life insurance company. You can not purchase these products direct from the company and they should be custom tailored by an experienced banking agent to fit your financial goals.
Because you have to qualify for life insurance health wise and financially, the companies underwrite each policy. If you are in poor health, you still have alternatives. Contact an agent to learn more.
By utilizing time tested and proven whole-life insurance , you can in essence create a private family bank, never having to depend on traditional banks or the government for money or loans again.
These custom designed Whole Life policies are designed to accentuate cash-value growth, especially in the early policy years. Depending on your state, these policies can also provide other benefits including creditor protection, disability, long term care and tax benefits.
These custom designed policies function like a bank…
- By you making deposits and loans
- By giving you access to capital
- By allowing liquidity, use, and control of your money
- By earning a predictable return over time
Saving versus Investing
For the most part, all of the large banks and financial institutions are trying to lure you in to their latest investments, so they buy advertising to convince you that you need to invest with them.
But, we’re not talking about investing here, because that involves risk. And, I’m assuming you don’t want to risk your hard earned money. What I’m going to share with you is the safest place to save money and have it work harder for you.
And… there’s hard evidence that goes back over a century. So, this is not a hypothetical projection of what could happen, it is a predictable illustration of what will happen.
Back to saving… When you think about how you should save, you have to consider many factors. These factors may span a lifetime or they may be for a short period of time. But, even if your reason for saving is short term, eventually you’ll have a need to save again. So, why not use a savings vehicle that allows for uninterrupted compounding?
Most people are familiar with compound interest, but the term uninterrupted compounding often causes some questions.
About Life Insurance
Life insurance companies are some of the safest institutions in the world. For centuries, life insurance policies have provided protection and savings to families and businesses.
Actuaries design and build policies with mortality tables that are based on actuarial data from 10 million selected lives. Lives are selected based on even more data from underwriting statistics, in other words lives that have been underwritten.
How Do Dividends Work?
Mutual life insurance companies use data to calculate annual dividends based on the company’s current mortality experience and their operating expenses.
Dividends are not guaranteed, however they have been paid consistently for well over 100 years by most mutual companies. Dividends have actually increased due to significant increases in longevity.
Why park money in life insurance?
Wherever you park your money, ultimately the reason for doing so is usually for someone to someday be able to spend it. The hard part is figuring out how you can get the most benefits while your money is parked.
It really doesn’t matter where you are in life, the one financial tool that covers all life spans is whole life insurance. That’s because it’s not correlated to the markets and it’s predictable. It protects from loss and solves financial problems.
If you’re just getting started in life, you may look at it as a forced savings plan. The beauty is that it gets better with age. So, as your needs change you’ll find that you can get multiple uses of your same dollars and create generational wealth.
Stewardship
Instead of just handing over your money to your children and grandchildren, a Family Bank can lend them money to teach them financial responsibility. This will in turn increase their success and aid in their independence.
Adult children can also take on the role of stewards and become producers of family wealth, rather than consumers, this distinction is crucial.
So, let’s review Private Family Banking…
- Protects your family and business from wealth transfers
- Allows tax free access to capital for any reason
- Provides a pool of capital for financing
- Hedges your dollars against inflation
- Can reduce your tax liabilities
- Creates a financial legacy
- Teaches stewardship
Now that you know this, why would you want to turn your hard earned money over to someone else’s bank? And then have to qualify for a loan, and pay them interest to borrow money???
The Dirty Little Secret
Here’s the dirty little secret about banking and life insurance…
The Big Banks own more life insurance than anyone, it’s called BOLI or Bank Owned Life Insurance. The FDIC even recommends they do.
When you learn how to become your own banker, you can escape the enticement of the banking monopoly and build your own wealth privately.
“The way to get started is to quit talking and begin doing.”
~Walt Disney
Just follow the steps below and get started with “family banking”.
Get Started with Private Family Banking in 5 Easy Steps
- Contact an approved family banking agent in your area
- Complete the Confidential Questionnaire
- Apply for a custom built banking designed policy
- Follow the rules of banking
- Share and repeat the process
Learn More
To learn even more about banking and how you can utilize it in your life, follow this link and sign up for the IBC video training. Watch these free training videos – Becoming Your Own Banker™ Explained and Simplified
Until next time, start banking!
Barry Page
Infinite Banking Practitioner
Barry Page is a Registered Financial Consultant and the Managing General Agent and Founder of Legacy Insurance Agency, PLLC. His specialty is life insurance and educating others on how Infinite Banking works.