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The Wealthy Have More Choices - Policy Loans

Today, our focus shifts to one facet of the the Infinite Banking Process. But first, let's delve into the concept of "the machine." This machine, which we employ to craft a specially engineered for you whole life policy through a mutually owned contract, has been a cornerstone of wealth creation for over two centuries. The wealthiest individuals not only use this process to build, keep, and create their wealth, but they were its original architects.

Now, a question I often pose is this: "Do you believe the wealthy have more options?" Undoubtedly, they do. So, if the wealthy have access to a plethora of choices, why shouldn't the vehicle they employ for building, safeguarding, and growing their wealth offer a multitude of options for the policy owner?

Here's another question: "Who is the policy, owner in every contract?" It's unequivocally you. You are the central figure in this narrative, the most pivotal character in the entire story. It's not me, Brent Kesler, not the Money Multiplier, and not even the insurance company—it's you.

Now, let's examine one of the components that affords the wealthy greater choices within this vehicle or, as we like to call it, "the machine" that allows you to regain control over all your financial needs. Let's explore the three methods for repaying a loan borrowed against the cash value in your own banking system. Remember, we never withdraw the money; instead, we collateralize or borrow against it from the general fund of the life insurance company. Some of you might be thinking, "But I want my money, not a loan." To that, I'd respond, "Why wouldn't you want your money growing at a guaranteed contractual rate indefinitely, possibly even earning dividends, while the same dollar works to make you more money?"

Here are the three ways we teach people how to be honest bankers. With a policy, you become both the banker and the borrower: you must pick one 

  • Structured Repayment: This is akin to how banks and creditors have conditioned us to utilize our money. Think of a car loan or your mortgage. You know four crucial details: the loan's duration, the interest rate, the monthly payment amount, and the due date. Structured repayment is the first way you can be an honest banker and pay yourself back.
  • Unstructured Repayment: This method offers flexibility in repaying the loan and allows you to inject windfalls or lump sums of money into the loan as you see fit.
  • Simple Interest Payment at Policy Anniversary: The final method we teach is to, at the very least, repay the simple interest owed on your loan at the policy's anniversary date. This keeps the simple interest from eroding the policy's growth.

Remember when we emphasized that you are the most critical player in this narrative and, like the wealthy, you have numerous choices? Well, there's more to consider. Think about this: if you're an owner in a mutually owned dividend-paying whole life insurance company that has maintained profitability for over a century, doesn't it benefit you to pay the simple interest? By doing so, you contribute to the company's profitability, and who benefits from that? Everyone does. This can potentially lead to higher dividends. It's a partnership where everyone thrives.

Join us to learn more about how you can live like the wealthy by recapturing all the interest and principal you've been conditioned to pay others and redirect it back into your family's wealth-building strategy.

Want to dive deeper into this topic? Check out our podcast on Paying Interest on Yout Policy Loans: Apple / YouTube

Money management, Control, Working money

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