Don't Borrow Against Your Whole Life Insurance Until Watching This Video

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Watch this one video before borrowing against your whole life insurance policy. #wholelifeinsurance #lifeinsurancepolicy #infinitebanking
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7 авг 2024

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Комментарии : 129

@BetterWealth 7 месяцев назад

Ready To Set up an And Asset? Talk with our Life Insurance Experts - bttr.ly/aaclarity Get FREE Overfunded Whole Life Insurance Education and Resources - bttr.ly/vault

@infinitevelocityCA Год назад

A policy loan is best taken when the funds will be used to purchase a working asset that makes money to offset policy interest or turn profit. .... In a perfect world.

@BetterWealth Год назад

Well stated!

@rohithsai5265 Год назад

Perfect

@polibot1 6 месяцев назад

Then what are your thoughts on variable life?

@funnyperson4016 5 месяцев назад

You can buy an asset and then borrow against that asset.

@wm9782 2 месяца назад

Control cost was hard for me to understand in this video I had to watch it multiple times.

@jorgevelasquez9955 Год назад

Great video as always. Would love to see an example of a policy being put to use...borrow from policy, invest in a cash producing asset then showing how you would pay back your policy in the best way possible.

@kayisit4472 9 месяцев назад

Your math is correct, I have seen a lot of misinformation out there making it sound like one can get magic money by using the leverage strategy

@theabdielgarcia 2 месяца назад

Im so glad I watched this! I had been thinking about what “paying yourself back with interest” actually meant and I am discovering what that all means

@CdotForbes13 Год назад

One situation where it makes sense to borrow to buy a car is when the interest rates at the credit union or bank are much more (currently trending upward) compared to your policy. If the bank is offering something like 8% but my policy loan is only 4%, mathematically you are saving 4%. It completely depends on the situation in the economy and much cash value you have available. I still would want to have liquidity available, so I wouldn't want to use most of my cash value that available.

@BetterWealth Год назад

Correct! 1. If you were sold on the car you were going to buy 2. And it would be cheaper to borrow from the Insurnace company then a credit union or bank then math would say use life Insurnace. 3. Personally I would still use bank for something like a car because I would value the CV available vs losing liquidity to something like a car. I should make a video going over my mindset here 😊 I really appreciate your comment and thoughts!

@Jnw636 Год назад

You could split the difference also. Use CV from policy to make a large down payment/50% of the loan. And finance the rest through dealer/lender. Best of both worlds in a sense.

@victor-arocho Год назад

What if you borrow money from your policy at 5% to pay off debt at 7% compounding daily. You are disciplined to continue paying off your debt back to your policy thereby reducing the 5% because you are paying it back before the policy renewal. I have seen control costs drop down to as low as 1.05%. Thoughts?

@DallinBunnell Год назад

I believe Mr. Nash and others are saying that if you were to spend the money on the car or the vacation regardless, you're more wealthy using life insurance as a place to store the capital first due to the lifetime compounding (as compared to borrowing from banks or using cash). Which is true. However, you make an excellent point that if you already have a policy, the compounding will happen regardless of the borrowing, so getting better rates etc just makes sense.

@BetterWealth Год назад

Really appreciate this comment! Yes I agree that a policy is the best way to store and use capital! I think it’s also important to know that there is opportunity cost in every decision we make and HOW we use our money 😊. Thanks so much for watching Dallin!

@dailstancill720 Год назад

Amen on borrowing for liabilities!

@KevinReynoldsjustkrey Год назад

Love this video! Thank you. If the control cost from your own account is 5%, and the interest on the account is 3% and the dividend is 1%, does that equate to an effective -1%. Math is my head as I’m driving…

@Eeeick Год назад

So, which whole life company is the best to go with for life benefits ?

@CallmeQuayZ 3 месяца назад

Loved this! Thanks

@Slamminbassplayer 6 месяцев назад

New to you channel. Super smart dude, way too smart to be saying “minusing” instead of “subtracting.” Still great content, especially for a young dude like yourself. Thanks!

@BetterWealth 6 месяцев назад

Thank you! Haha I’m working on my delivery every day!

@CharlieBais Год назад

Hi Sir. Thanks for this informative video. I just have a question. If your policy is already paid up. How does your money grow there? Thanks in advance for the answer.

@condorheroes7728 Год назад

Very helpful video and great explanation! Thank you!

@BetterWealth Год назад

I really appreciate you watching and sharing this comment!

@ballingonyourbudget6545 11 месяцев назад

Is it good to use it to pay off your credit card debt it’s a program that’s called debt free for life and it consist of using a tool to pay off my credit card debt so I would like to know what’s your opinion on this and is it good or not to do this?

@marcin7570 Год назад

I agree with most but you totally forgot what a compounding effect your policy interest generates daily versus the daily cost of policy loan interest. If loan is taken out few years after policy start, you should always come on top with regular disciplined monthly repayments back to policy loan.

@ScottKath-Oceana Год назад

Great video. In depth!❤

@BetterWealth Год назад

Thanks Scott 🙏😊

@PittToNYC 5 месяцев назад

So when you borrow funds from the cash value, how does that work? Do you have to say I want $10K, $20K, or some other bigger amount? Or can you use it like a line of credit or a checking where you can make smaller deductions several times per month? For example, how you would pay your credit card bill and your electric bill at different times each month and would use a debit or credit card.

@rinekoshy7765 3 месяца назад

Whats your thought to use loan to pay the premium every year and then pay it off as we go throughout the year

@bradleyliska5270 Год назад

Wow any I can see your an addict to your passion. Ima continue watching more and subscribing. I might want to connect with you if possible. Lmk 😅

@BetterWealth Год назад

I really appreciate that! Feel free to send me a DM on Instagram or shoot me an email!

@MA-rc2eo Год назад

Please share the name of the bank that gives 1%?

@hypnoticvibes5409 Год назад

Ok thanks for sharing.

@BetterWealth Год назад

My pleasure 🙏. Thanks for taking time to watch and comment!

@patrickhoulihan554 Год назад

I really like your descriptions of banking in this video - great illustrations of how taking a loan out at 5% to then put into an investment that earns 7% is actually an ROI of 40%. A tough concept to explain (in my opinion), and it was done in a very digestible way. Good info as always Caleb!

@BetterWealth Год назад

Thank you! I really appreciate that Patrick!

@thebradmanofmuskoka Год назад

Explain why ROI is the correct term. I see an annual ROI of 2%. Your cost is not what you calculate the return from.

@patrickhoulihan554 Год назад

@@thebradmanofmuskoka sure thing! I’ll try to explain my thinking a little more clearly. If we’re taking out a loan, let’s say we take out a loan for $100 at 5% annual interest. We’ll have to pay back the original loan + the $5 in interest at the end of the year, meaning we owe $105. However if we take the $100 and invest it and make 7% we’ll end up with $107 total. So all in all, we’ve made $2.. but since the $100 was a loan, and not our own money, we really only paid $5 out of our own pocket in order to gain a net of $2. That’s where the 40% comes from, we spent $5 to profit $2. Hope that helped to clarify how I got the ROI.

@supra8544 7 месяцев назад

@@patrickhoulihan554 That’s not how you calculate roi.

@julianmontenegro4823 Год назад

Nice video. What do you think about leverage high cash value policy to pay for premiums. Kind of premium financing

@BetterWealth Год назад

Great question. In most cases the math doesn’t add up for cash value net increases. I would cation life Insurnace illustrations that say otherwise. For estate planning and death benefit though you could argue for something like that. Borrowing to start new policies are frown upon from Insurnace carriers and called laddering. I hope this answer was helpful 👍

@sleeptherapy9074 6 месяцев назад

is this possible in the UK

@drexelspivey872 Месяц назад

Hi Caleb - I have a question. Would it make sense to open a life insurance policy and borrow against it each year to put the borrowed amount in my Fidelity account for large chunks of investment each year? Or would I be better off just putting all my cash flows into Fidelity ? This is what I’m hung up and confused on

@HolliCMcCormick1 Год назад

Are there any 3rd party lenders Caleb you would use right now? I am assuming all rates from Lenders are going up…

@BetterWealth Год назад

Right now as I speak the reason to use 3rd party lenders are for connivence or for writing off Interest for Busienss use. The interest rate is no longer cheaper then Insurnace companies. Over time though I don’t think the loan interest rate will remain cheaper for Insurnace companies. Email me and I can send you some of the 3rd party companies I would look into 😊

@Jay-iv9lg Год назад

I’m using my policy to pay off debt and storing money each month. One thing I’m doing this year is waiting to borrow on my policy to pay off my car on the anniversary date in 2 months so I’ll save on the yearly interest payment.

@BetterWealth Год назад

Hi Jay, I think it super cool that you have a life policy and your using it for things like debt and cars. I wish you the very best 😊. Thanks so much for watching and commenting!

@Jay-iv9lg Год назад

@@BetterWealth Thanks! I love your content and just started reading your book. Keep up the great work!

@lindam.1058 Год назад

What type of policy do you have?

@megbobsbarn3 2 дня назад

Can you do a video discussing direct vs. non-direct recognition?

@Quan2fit 7 месяцев назад

I’m little confused so buying a car with life insurance to drive to work would be not worth are saying just get auto from bank

@amyo1585 Год назад

I'm making 34% ROI day trading (mostly options). I have $75K in my brokerage accounts, so I'm on margin. I have a very strategic and fairly safe way of trading. Anyway, based on your calculations, theoretically speaking, if I took out $35K from those accounts and placed it into a whole life insurance policy. I could borrow against it... say within the next year. I could then put that "loaned" money back into my brokerage accounts and keep earning my average 34% ROI BUT I'd also keep earning above and beyond say the 4% current interest on the life insurance?

@coryreedy2752 Год назад

Really good stuff Caleb.

@BetterWealth Год назад

Thanks so much Cory! Means so much

@BetterWealth Год назад

Thanks for watching and commenting it really helps 😊

@sannicolas3353 Год назад

awesome breakdown in helping me understand the strategy. Question: you say the cash value continues to grow uninterrupted even when you borrow against it...does make two payments? 1 into the loan and 1 into the policy? the and asset vault link isnt working...

@BetterWealth Год назад

Try this www.andasset.com/vault

@BetterWealth Год назад

If you are paying your premiums annually and then take out a loan and decide to pay that back you would have your annual premium contribution AND your instructed (optional) loan payment to the Insurnace company. Does that make sense?

@sannicolas3353 Год назад

@@BetterWealth perfect sense.

@forthejoseph Год назад

where do I find the right agents who will allow me to make-contract with their bank using the cashflow banking paradigm, with the high-cash benefits strategy? in other words, are you capable of setting up my policy? can we use quantum-grammar? why don’t you have the venue for the corporation of your own bank?

@BetterWealth Год назад

Hello! Yes, we specialize in designing overfunded whole life insurance policies which can be utilized by the infinite banking concept. As far as structuring goes if you head to The Vault we offer further explanations, resources, and a strategy call if you would like to further the process - bttr.ly/vault

@womantaxidriver 5 месяцев назад

I am a new Whole Life agent and i am excited to start this new venture. I understand that this insurance is a multi-use asset. How do you propose I began learning the illustrations, so i can do the designs on my own and be able to show my potential clients how it will look like? Thank you for all your insight.

@BetterWealth 5 месяцев назад

Email me at caleb@betterwealth.com and I will do my best to get you on a solid path 🙏

@forthejoseph Год назад

Does this work well for Human Design Projector types?

@BetterWealth Год назад

Thanks so much for the comment! Can you maybe clarify your question? I look forward to answering!

@reneewemmerloredo1405 4 месяца назад

I am interested in doing your readings I’m licensed and I want to specialize in this area.

@yaranzo5pwns 11 месяцев назад

I think it's fairly obvious that you're better off using policy loans to buy cash flowing assets. What you fail to mention about buying liabilities is the bit where you're going to be an honest banker as described by the founder of the infinite banking concept. Not only will you pay back the loan + interest, but you will also charge yourself the market rate for such a loan over the term you will pay it back. These separate payments will be used to purchase PUA. It is this factor that actually allows you to come out ahead and still have a car in your driveway you wouldn't have had or come out much worse off financially. Now, you could not have bought the car and instead put all the loan payments, interest and honest banker interest into the policy as PUA (potentially) and been waaaay further ahead in your policy, but you'd also not have the car. Simple matter is everything in life is financed and the average person has immediate needs. They don't have the breathing room to buy cash flowing assets right now. They can be an honest banker and finance the things they need in life and come out ahead rather than being poor indefinitely.

@yaranzo5pwns 11 месяцев назад

The question is who are you serving? Because by presenting it this way, you've basically convinced the people who NEED these policies the most that they shouldn't get one. The people who need these policies the most are the working class whose every dollar is squandered to go on living. If they could instead save every dollar they make and use PLs to finance their life and, yes, make money doing so they absolutely should. The goal should be to eventually loosen the noose to a point where cash flowing assets become a possibility. But for now, life happens and financing it with a whole life policy is vastly superior than going into debt or using income and savings in the form of cash.

@gabevasquez2599 7 месяцев назад

Great! This need to be said

@lindam.1058 Год назад

Can I use my 10 year money policy to spend or save money? I feel that my money is trapped there and what's the point of saving it if I'm still there!

@yodhangzien 11 месяцев назад

After age 80 they probably charge more fee and life insurance

@guehel06 Год назад

By paying my liability when i don't have an opportunity still give me a cashflow that i can use back. Isn't it?

@multimeter2859 Год назад

Does this video hold true for both direct and non direct recognition?

@BetterWealth Год назад

Yes, this can apply to both types of companies.

@bioweapon2271 Год назад

so what is the least amount of cash that you can open a policy and what's the max amount ?

@BetterWealth Год назад

I would say 5K annually would be the minimum that I would start with. We like to say 10K to begin because then structuring the policy upfront and ongoing becomes a no brainer :)

@pfopdoodle Год назад

Nanban Caleb, did you ever practice the GK strategy from your other video? Would that investment be worth getting a loan against your policy assuming that loan rate is 5%?

@BetterWealth Год назад

I know people well who borrow against their policy and do the Gk strategies. Last I spoke with them they we’re crushing it. Don’t give investment advice but the mast ads up if you feel confident in the backend strategy 😊

@BetterWealth Год назад

Thank you for commenting and watching Pat! Really means a ton!

@pfopdoodle Год назад

I was just thinking... Is this closely applicable to lines of credit like a HELOC or different because we are essentially our own bank?

@gianabecker9288 Год назад

This is true, but you still make profit in the end. Let’s say after 30 years you make an income of 1,000,000 from dividends (after we subtract all the fees). Not premium, but a million from the compounding effect of dividends. Now divide 1,000,000 by 30 years. That’s about 33,000 you made per year in dividends alone. So say you take a 10k loan out every year at a 5% interest rate. That’s about 500, so 10,500 a year. Which means assuming you pay your loans back so intrest doesn’t compound, you’re still earning 20k free per year just off the strength of compounding intrest. So taking a loan from yourself is smart IF you don’t take out more than the your 30 year profit (years depends of course) AND if you pay it back so interest doesn’t eat itself (although if you didn’t they’ll just subtract from the death benifit). Of course investing will be 100x smart, but again compared to sitting in a bank taking a loan for a dream car and letting the rest compound still sets you on top!

@kevindavidson2291 7 месяцев назад

None of the equation factored in the huge premium you also have to pay in addition to the control cost!?

@dontfighttheriptide4091 7 месяцев назад

That would be because those premiums are ultimately not cost… they’re capitalization of the asset. The asset that is being collateralized to lend against - no different than banks do with tier one assets, except the difference is that banks collateralize a liability (deposits owed to account holders) whereas IBC bankers aren’t contributing to fractional reserve counterfeiting (source of inflation and boom/bust cycles society suffers from)

@criticalsoles4102 Год назад

The whole point of using the generational wealth method is to be your own bank not have to use your own credit not have to use their money Once you have credit on a house they got you locked in the whole point is to be debt-free and the only way to be debt-free is by doing this but you are right though and one stance you are right though

@BetterWealth Год назад

I appreciate your comment and your perspective. There is many different reason / convictions to do this strategy. I don’t share the same passion for not using banks BUT I can agree that this is one of the best things you can do if you don’t want to use banks 👍 Thanks again for watching and commenting!

@scottjensen7434 Год назад

Can a LLC or a business, take out a life insurance policy on a member?

@BetterWealth Год назад

Yes they can! If you want to talk to someone on my team about this email me at Caleb@BetterWealth.com There are pros and cons to having Busienss funding a policy

@dailstancill720 Год назад

What about argument compound growth > simple interest payment

@BetterWealth Год назад

When you factor opportunity cost, every decision compounds. Simple internet earned or paid has a long term compound effect. Does that make sense? I can make a video on this to better explain this concept.

@devanborsboom Год назад

Love the irrefutable logic here Caleb. Thank you for what you do.

@BetterWealth Год назад

My pleasure bro! Thanks for the comment and for what you do!

@cesardiaz8593 Месяц назад

Could u barrow to buying equipment for a business

@BetterWealth Месяц назад

Short answer is if you have cash value available you can borrow for anything you want. So yes 🙏

@jonathanschwartz4615 7 месяцев назад

What happens if you don't pay the loan interest?

@BetterWealth 7 месяцев назад

If you never pay it back the insurance company will take what’s owed out of your death benefit after you pass away.

@Tkh21209 Год назад

According to this vdo its better tonsave up gor a car instead of relying on a whole insurance since it brings the 60% ROI instead of saving up cash for the car

@_coachcraig_ Год назад

We normally save up money to pay all cash for vacation. What you're saying is you wouldn't put that cash into my policy and they borrow against it to pay for the vacation?

@BetterWealth Год назад

Technically you could but I personally wouldn't borrow against your policy to use for anything that doesn't give you a greater return on your investment. So if you borrow against your policy and the interest rate is 5% you would want to use that money on an investment that would give you a greater return than 5%. Now, if you really only care about seeing your cash value grow in your policy and you're not concerned with paying the interest rate, you can use it for a vacation. The important thing to ask yourself is, "Will this vacation bring me closer to my intentional life, and what is the most efficient way to do that?"

@_coachcraig_ Год назад

@@BetterWealth Understood. That's the battle for me. I want to capture all of the interest I can, but vacations are something we didn't have as a kid. So, that became one of those things I wanted for our life.

@BetterWealth Год назад

@@_coachcraig_ Absolutely! Ultimately, the goal of using life insurance as an asset is to improve your life and bring you closer to your intentional life. Feel free to give us a call and we'd be happy to help you figure out the best move for your life and goals bttr.ly/aaclarity

@coryreedy2752 Год назад

I literally just looked up the average interest rate on a personal loan in the US and as of October 7, it’s 11%!!! 11! SMH

@BetterWealth Год назад

Crazy!

@amunozamunozamunoz 4 месяца назад

Seems like the lower the control % then the better to have a better ROI

@amunozamunozamunoz 4 месяца назад

Also is the control% same thing as the Internal Rate of Return IRR

@cometcal2 Год назад

What makes more sense? Watering a fruit tree? Or watering a rock?

@cscrignaro 5 месяцев назад

You can definitely borrow against a car...

@abeeiland2996 2 месяца назад

In a world manipulated thru debt (usury) man continues to defy biblical laws. Infinite banking is a system to counter the loss of usury, allowing the insured to recapture all of the interest, principal they would lose to the outside third parties 😮.

@criticalsoles4102 Год назад

Once we buy that car and we start a Turo business that’s an asset now

@BetterWealth Год назад

🔥🔥🔥

@theelect777 Год назад

Depends on policy/company type. Ideally issued by a participating mutual company with non-direct recognition on the dividends. Agreed on the cars thing. It didn’t make you more money buying a liability with life insurance. However in comparison to paying interest to a bank on a car loan or opportunity cost of using cash. Given say you repeat for 6 cars over 30 years time, you’ll have a lot MORE cash than you would otherwise. When stock markets correct, I like borrowing against my whole life before using margin. And then just repay myself in 1-3 years. Rinse and repeat, and works great.

@718_sports4 Год назад

🔥🔥🔥🔥🔥🔥🔥🔥

@BetterWealth Год назад

😎😎😎😎

@TheOneshot78 8 месяцев назад

Buy assets not liability..

@bramptonpie Год назад

Lest not forget tax!

@BetterWealth Год назад

Yes! When you borrow against your policy is not considered income making that access to cashflow “tax free”

@supra8544 9 месяцев назад

It’s 3% that the bank made and not a whopper 300%.

@jayclark680 7 месяцев назад

Correct. What he should have said was, "They make 100% of 3%". I feel so bad for people that are falling for these terrible financial products.

@funnyperson4016 5 месяцев назад

it isn’t about spending yourself wealthy but hanging onto as many assets as possible while spending whatever you would spent. If you have $50k earning 4% (2000 in interest) you can borrow up to 33333*0.06=2000 while earning at 50,000*0.04=2000. Or 0.04/0.06=0.67=67%. Borrowing more than that moves you backwards (unless it’s for assets that exceed the borrowing cost), borrowing less than that and the asset can pay off the loan itself without any additional capital outlay. If you replace expenses you would ordinarily have and now can start putting more and more of your current expenses and payment into IB, and also continue to make investments just as you would it is a net benefit.

@forthejoseph Год назад

😂”that’s in-credible” ex-act-ly.