96. Seven Myths of Life Insurance Lending in Canada

You are listening to the Wealth Without Bay street podcast, a Canadian guide to building dependable wealth. Join your hosts, Richard Canfield and Jason Lowe, as they unlock the secrets to creating financial peace of mind in an uncertain world. Discover the strategies and mindsets to a financial future that you can bank on.

Dispelling myths about insurance lending on Wealth Without Bay street, joined of course, by Richard Canfield, hailing from Chilliwack, B.C. otherwise known as the Wac.

The island of Chilliwack, B.C yes, the. The island. The flooded plains of Chilliwack, B. C. If anyone's been watching the news in the last Q4 of 2021, we're all doing good here and we're excited to talk about these, these myths we're going to dispel. The myths of insurance lending.

The myths of insurance lending.

Yes.

Now, coincidentally, okay, coincidentally or not coincidentally.

There was actually some literature that was published by a bank to dispel the myths of insurance lending. But we're going to jam on this, and this is going to be great for folks who have been, as they tell us, binging wealth without Bay Streets, which we sincerely appreciate.

We're going to have to start a program. Yeah, my name is Richard. I binge Wealth Without Bay street. I'm at 52 episodes right now. And.

So before we do that, as people are listening to this episode, if you find yourself thinking, hey, this sounds really interesting, and you're aware that we describe and discuss the process of becoming your own banker, the infinite banking concept. There's just a real quick start, 7 steps CA. At 7 steps CA, where you can just access. There's a report that a person can just access. Is that right, Rich?

Yeah, yeah. It's got a couple links in it. And it's very, you know, very quick, high level. It explains what are the recommended, what's the recommended path to actually discovering how to implement this in your life? And what, what are the learning resources that you should be digging into? Like first step, second thing, all the way to step seven. And there's a couple little bonus items in there. Yeah, it's a great little guide. It just helps you understand, like, hey, if you're actually looking at doing this in your life and putting this in your life, what information should you be first and foremost taking in? And then in order to help you make that decision, it's, it's really, really well put together.

Very cool. Again, that's seven steps ca. Seven steps ca. And okay, so here's, here's myth number one. Now, our video editor loves these Things because in the video, you know, he can make this all flashy. Okay, here's myth number one. Wealthy individuals don't need to borrow money. How do you think they became wealthy?

It's so rich. What do you have to say about that?

Well, I mean.

I don't know too many people. Like there's a lot of wealthy people who don't have to borrow money, but they often choose to borrow money because they can, they can put more capital to work in different areas. And they also understand some risk, risk management things. They understand how leverage can work for them, the leverage of opm, other people's money. Typically in most discussions, people are looking at a bank. You know, we work with a lot of real estate investors, people who own, you know, large multi unit complexes or commercial buildings and, and that sort of thing. Well, typically you don't stroke a check in cash to go buy those. You, you know, you use cash. It's just someone else's cash. It's usually a bank's or some other mechanism. So people, especially business owners, you know, a lot of the wealthy people are typically in the business owner category. They're using capital on an operating line of credit or whatever it is to help, you know, do deal with operations of their business. It's extremely common. And the, the wheels of the banking business seem to be churning quite effectively, at least in Canada.

Here's the deal. You're always working with borrowed money, whether you're wealthy or not. You either pay interest to someone else to access someone else's pile of money or you permanently give up the interest that your own cash could have earned. Otherwise, if you're saving money in someone else's bank and then withdrawing the money and spending it now for the purposes of insurance lending. Well, if you've, if you've got the dividend paying, participating whole life insurance contract and let's presume that you're not even accessing the money from the life insurance company. So let's take the policy loan option and we'll park that for a moment. You've got this contract. You go to a commercial lender and that commercial bank looks at the contract and has to have tissue nearby to just wipe up the drool that just starts coming out of their mouth because they know that the insurance company itself is guaranteeing the collateral for the loan. And the policy owner himself or herself is also aware, especially working with us because we help our clients by actually helping them and we coach them on the anatomy of these contracts. They're fully aware that the total Cash value of the policy continues rising daily uninterrupted, even though they're tapping into insurance lending that's provided from a commercial bank. And it's no secret that. So if you were to sit down with it, set the contract aside, the insurance contract, if you sat down with a lender, Richard, and the lender said, hey, Richard, we understand your home is valued at $1 million. And we're not only going to lend using your home as collateral, but we're also going to provide you a contractual guarantee that your home is going to rise in value every single day for the rest of your lifetime as long as you do business with us, regardless.

Of what's going on with the political or economic factors that exist in your geographic marketplace where that home is located.

Totally. And so the whole purpose of what we do with wealth without Bay street is that we're educating the general public. You don't have to be wealthy to do this. So regardless of whether or not wealthy individuals need or don't need to borrow money.

You have to recognize that someone has to perform the banking function in your life as it relates to your needs. And it can and it should be you. And.

There'S no classification of, hey, well, if you're not wealthy, this isn't something that you should be doing. In fact, it's quite the contrary. If you need the use of money like everyone else, then you should be controlling the function. But that's the first myth that we want to dispel about insurance lending. What's the second one, Rich?

Well, the second one on the article that we've found here, again produced by a bank, is that insurance lending is expensive. Now what they're referencing is that if a lender or bank is taking collateral, as Jason indicated, on a policy. So we've set policy loans aside here. We're not talking about policy loans with the insurance company. We're talking about collateralized loans with a third party lending institution that, that insurance lending is expensive. And so it's, it's interesting because expensive can, can mean different things to different people.

And it's the least expensive form of.

Lending because they're going to give you, you know, they're, you're going to get a collateralized, basically it's like the equivalent. So just imagine, you know, we'll use Jason's house example. Everyone's familiar with a home equity line of credit, right? You can go, and as long as you've got equity in your home, reasonable equity, you can go and refinance that house or rental Property if you can get it past the bank and get a 80% loan to value new financing where 65% of that is a home equity line of credit. So the new cap typically is 65% is the maximum. They'll give you a line of credit facility and then they'll do 15% on top of that as a, as the balance as a traditional principal and interest paying mortgage loan. Right. And so you can go ahead and do that, but 20% of your equity has to stay in the house and you got to pay for the legal cost. You got to pay for the appraiser to come and check out the house and write the report who's going to do a lower appraisal than what you think the house is worth. Because that's typically nothing against appraisers, but that's often what happens when the bank is the one who orders the appraisal. And so you have all those mechanics to go through and the time and the cost associated and then you're going to go ahead and pay interest to that third party bank. Well, it's pretty easy to value the insurance contract because you just log in and say, okay, that's the cash value right there. It's just like right there and it's.

Going to be larger tomorrow.

Yeah. So that's pretty easy.

So if you want to delay my application for the collateral loan until tomorrow, then you'll just lend me more, be more available.

And so you, you know, it's like if you're dealing with a third party bank, you still have a application process. You know, banks don't have any sense of humor at all about these kinds of things. They want to know who you are and know what's your income. And they want to know, you know, they're going to check your credit because it's a lending, you know, whether or not that loan appears on your credit report could vary based on the lending institution. Right. So, so that's something to be aware of. There are some institutions where, hey, there's a possibility that maybe it doesn't show up in your credit report, which may not impact your debt servicing if you're a real estate investor or what have you. But oftentimes it may. And they can change these rules. They're a bank. Banks change the rules all the time. They do that all the time.

But here's the thing. This is a bank publishing an article about dispelling the myths of insurance lending.

Right.

So what does that tell you?

Because they want your business, they want to lend money on your Insurance. Well, insurance lending is expensive. Actually, it's not. That's a myth. Come in and book an appointment with one of our cash surrender value lending specialists. We'll explain it to you and we'll get you all hooked up. So you're exactly right, Jason. They're promoting an important line of their business because their business operates on generating payments that come back with principal and interest, or in this case, it's usually just interest. And in some cases with insurance lending, there's no payments at all and that interest is just accumulating and it's capitalized and it's growing each and every year. And they're going to get their big fat giant payout. When somebody kicks the bucket and they graduate from planet Earth, the death benefit pays out. Money comes and it pays off. The collateral institution, the third party bank first, because they have an assignment on that collateral, they must get paid and be made whole, including any outstanding interest. So a big gob of money shows up for them and then whatever remains tax free goes to the beneficiaries that are selected.

And we should tell our listeners and our viewers on the YouTube there are seven myths that we're going to dispel. So we've addressed two. So insurance lending is not expensive. In fact, it's the least expensive form of, of, of lending that exists out there. Okay, here, here's one. Number three, clients have to take on more debt. Also a myth, so the article reads. The line of credit is there if and when they need it. Absolutely accurate. If they aren't tapping into the line, it doesn't cost them a dime in interest. Also accurate. Using debt, especially in this low interest rate environment, can be a smart way to help maximize available capital. Affluent clients are choosing to, instead of having to take advantage of insurance lending again, it's recognizing the anatomy of the collateral, the policy itself, the fact that the policy values are rising daily uninterrupted by this operating line of credit or the loan that the lender has extended to you as the policy owner. Total and absolute control are so important, whether you're affluent or not. And you don't have to take on more debt just because the lender says, listen, we'll take this policy as collateral. We're going to extend to you an operating line of credit.

It's there.

It's available to you when you need it. Now, we've often used the expression that banks will hand you an umbrella when the sun is shining and rip it out of your hands when it starts raining. And we're just Saying that in good humor, of course. I mean, banks are necessary. But by the same token.

Again, I can't emphasize this enough. I'm going to sound like a broken record. This is a bank publishing this article. When you sent this to me, Richard, I just burst out, literally burst out laughing, saying, again, think about this. Everything begins with the way that we think. The banks aren't publishing an article saying, let us explain to you why we're not investing in the stock market or mutual funds.

No, instead, let us explain to you why insurance lending is good lending. Exactly. Lending is good. Lending is good. Lending is good. You should come and do some lending with us because lending is good and we would really love it if we had your business. Especially if you've got homes. We'll take that lending. You got insurance contracts, don't worry, we've got a program for that. We'll take that lending. Lending is good.

And let's just describe quickly because again, folks may be new to wealth without Bay street, if you are welcome, we appreciate having you here. And some folks aren't aware, like if you have a home, you go to a bank and the home has no mortgage on it, it's worth a million bucks and you would otherwise be qualified through the bank's underwriting process. And the bank sits down with you and says, we're going to extend to you a first position home equity line of credit. And the maximum loan to value that we're agreeable to is 65%, 650,000 bucks. Now, we can extend to you some additional capital to bring you up to let's say 80%. But that portion must be a principal and interest payment. It's essentially a mortgage. Well, when you show up to dependent upon the lender, the lender with the insurance contract, the lender is going to extend to you a minimum of 90% of the total cash value of the policy. Some lenders will extend to you 100%. So what does that tell you about the strength of the asset?

Now they compare an insurance collateral relative to property.

Property collapse, right?

Now, I shouldn't say property because technically insurance contract is private property because it's the law of contract, private property. But we're talking about physical property. Right? And, and to take that one step further, there are multiple lending instruments. It's not like you can just like, you know, we're talking about a line of credit because that's, that's the facility that most people are utilizing, but there's other lending mechanisms that are available. And so the size of your policy the size of the cash value in it. These are things that are going to have a relevance to what the bank's willing to do. Like do you fit in this box over here? I've got a small policy that's like a $100,000 death, whatever, $20,000 death benefit or something. It only has a little bit of cash value. They might not lend the same way on that. It may not fit their bubble of qualifications. So they always have a bubble of qualifications that the bank comes up with. There's a reason that they do that. I don't know what's going on in the head office of a bank as to why they make these bubbles up, but they do. And so usually we're talking about policies that have accumulated a reasonable size of cash value, often to the 200,000 plus range of cash value that we're doing a lot of these lendings on. But there's multiple lenders and they have specialized programs. So if you just walked into your regular brick and mortar bank on the corner of the street where you do your day to day ATM transactions or whatever, there's nobody there that understands, very unlikely that there's somebody there that understands even that cash value lending exists. Right. That's not the department that handles it.

That's right.

They have specialized departments. They have people who like this is what they do. They literally only deal with that. And so typically you are working with an advisor who has a relationship or has a connection to help bridge that gap of how we take your insurance contract, print out an enforce illustration, verify the details, then we hand it over to the banking person, we do your application. Bank says, yep, this looks good, this meets our qualifications. Boom. Here you go, Mr. Bob Banker, Mrs. Bob and Sally Banker. Here's your line of credit. But you can also get a lending instrument that's referred to as an IFA or an immediate financing arrangement. That is a different structure. It's ca, it's a third party bank lending instrument typically used in corporations. But it is not a line of credit. It is a demand oriented loan. So they issue you an amount every year. As your cash value is up, they issue you a chunk of money. But if you send anything back to that loan, let's say they issued 100 grand, you put 50 grand back in. You can't pull that 50 grand back out like you can on line of credit. It's stuck in there until the next year's anniversary and you paid your premium and you can get it bumped up again. So it's a different structure, has Certain reasons why people do it. It's not good, bad, or otherwise. It's just being clear that there's many different ways that banks have set up programs that are designed for specific purposes within insurance lending.

Well, and you've got to be working with, I mean, for our clients who work with us at Ascendant.

Certain lenders, you have to be vetted as an organization for them to even work with your clients on insurance lending. And Ascendant is fully vetted. Greenlight, go. We've got those relationships in place for clients who need them. And you need to work with an advisor who is thoroughly familiar with how to help you navigate these options. And that's just, you know, again, another advantage of, you know, working with experts like we have on our team.

And now, before we jump into number four, I want to say something, a shout out to our friends Ryan and James with the Banking Life podcast, because they themselves mentioned on their podcast, as we've said here, I don't know how frequently we've mentioned it, but banks use other banks.

So if you're a privatized banker, you want to practice and you're implementing the infinite banking concept or becoming your own banker, there may be times and periods where you may choose. You know, you have your, your policy. You could do policy loans, which is not what we're primarily talking about here today, or you could choose to now assign that policy as collateral to a third party bank. And there may be valid reasons why you want to do that. Bankers can use other banks. It's just a matter of what's working for you. Why are you making decisions? What's the purpose and the objective you're trying to accomplish, and is it sensible in your situation? Because everybody's situation is different. Go ahead and open up your financial junk drawer and you'll notice that yours looks very different than your neighbors.

Yeah, very good point. Okay, so here's myth number four, that insurance lending is risky.

Let's see, we've got a unilateral, binding contract that is contractually guaranteed to rise in cash value on a daily basis. It's a permanent policy.

So the lender takes a look at the collateral and says, okay, who's on the hook here? The insurance company.

Ah.

The insurance company that has been operating since 1920, has been profitable every single year since inception, has never failed to satisfy the contractual guarantees that they're legally bound to.

I think we're okay in the risk category. We know that the insurance company itself is guaranteeing the collateral for the loan.

The borrower the policy owner.

May not even be the life that is insured on the contract.

But we know that the life insured is going to die. We just don't know when and when that day comes. And it most certainly will come. Life insurance company is going to write two checks. They're going to write one check payable to the lender for whatever the loan balance is at that time. And the second check is going to go to the named beneficiary of the life insurance policy.

And if you're a corporate owner and you've been using a corporate asset to borrow money.

You'Ve got to work with a professional who knows how to guide you through that process so that there are no taxable events triggered unintentionally at the time of that shareholder passing away. And at ascendant, this is what we do, this is where we specialize. And so you got to make sure again, you're working with a professional. But anything around that rich that comes up for you, insurance lending is risky.

Well, I think one thing that comes up for me is Nelson, Nelson mentioning, we talked about leverage and oh, they always tell you, all the real estate gurus, they tell you about the power of that leverage, but nobody tells you what happens when the lever goes the other direction. So what he was referencing was lower interest rate environments having operating lines of credit, much like we're talking about now, typically on property, but doesn't matter if it's on property or insurance contract. And then all of a sudden there's a, there's a change and interest rates, you know, in the early 80s, everybody knows interest rates spiked almost overnight and they went up dramatically. And so that created a real problem, a lot of pressure because the lever as Nelson talked about, went the other direction. And so the value of the real estate probably went down. Meanwhile, the cost of borrowing went dramatically up. And so that created the inverse of a successful environment to be operating in. Well, in this situation, if you're using a third party lending institution and you're using it with a cash value insurance product, that means you have the cash value to support that loan. So it's the value, the asset value is there and it continues to rise, as Jason has mentioned, cannot go backward, can't go backwards. So at any point in time, if there's a shift or a change in the, in the marketplace, the sea of the marketplace of lending products and interest rates in the open market and you don't like what's going on or you don't like the trend, you as the policy Owner have the, you could say, look, insurance company, I want to initiate a policy loan and I want to take back, I want to buy out the assignment on my contract and I want to do a direction to pay. It's just like when you have a mortgage on a property and then you're going to go refinance that mortgage with a totally different lender. You know, TDs on the loan and you want to replace it with Scotiabank. Right. You don't receive the money and then you hand it over to td. The lawyer takes the money and it passes it through some lawyer hands and then you pay the foot, the bill for the lawyer's hands and they pay out. This third part, the other bank, and now the new bank is replacing it. It's the same example. We're going to get rid of the third party lending bank. We're going to take back control, and we're just going to wipe them clear. With a policy loan, you don't get the months passed through your hands, but you can now free that up if you don't like the change in the environment. So it's about control. So in my opinion, is insurance lending risky? I would say no, because the policy owner has far more control than any other lending instrument that exists on planet Earth.

Really good point. Really good point. And what's myth number five?

Myth number five, we kind of just went there, but clients. Myth number five. So again, this is written by a bank. Clients must go to the insurance company for a policy loan.

And the bank is saying this is a myth.

Right.

Which is true.

It is. Yeah. You don't have to go to, you don't have to go to insurance company. Get a policy loan. You can get a policy loan or you can get a loan. Not a policy loan. You can get a collateral loan from a bank as long as the bank has a product that supports it, a department that knows what they're doing, guidelines on how you're going to get approved for it, you know, et cetera, et cetera. So, you know, is every single bank that exists in Canada have a product that works for this? Likely not, but there's a group of them that specialize in this area, and that's what you can do. Doesn't mean you have to go to the insurance company to get a policy loan. However, you may be much more inclined as a policy owner to do your business with the life company, which is what we talk more about on our podcast. For the bulk of your relationship with that policy, there may come a point in time at least in Canada, because.

There'S two people that we don't like. Generally speaking, most of our clients don't like banks. If you like banks and you're listening to this podcast, I would be really curious how that happened. But thanks for listening. But most of our clients don't like banks. And the other people that don't really care for is the taxman. Now, it's not that the tax man's bad. They just have a disagreement and a disparaging, you know, gap on what, what the fair share allotment is. Right, right. And so, you know, there's a point in time where it may make sense in Canada for you to look at collateralizing the bank with a third party lender because there could be some potential tax benefits for you at that stage. And, and so that is a very common thing that happens here in this country today. And, you know, what comes up, Jay, is some people will say, well, is that really, you know, you know, practicing the art of becoming your own banker? Well, again, banks use other banks as it suits their needs.

Nelson Nash said himself, you know, when we talked to him again about the tax laws and what we have to, you know, address, and his advice was always the same. He said, you've got to work with what you've got. And the. This is an option and a really good option for many people. And that brings us right to myth number six, which is that insurance lending suits only affluent clients and business owners. Now, the article is correct. The bank is correct to indicate that this is a myth in that for business owners in a situation where they have corporate owned life insurance contracts, they've got defined financial objectives around creating a corporate preferred retirement solution and using insurance lending to achieve that objective. Very applicable. But some of these banks will lend on policies that have cash value.

In.

As low as $33,000.

And for our client, if we were to just look at an average client at Ascendant Financial.

Gosh, I would say that on average, policies for our clients would be significantly higher in total cash value. So the bank is correct that this is a myth. It's not only suitable for affluent clients and business owners.

What's important is that if you are a participating policy owner and you're curious to know, is this an option that makes sense, can this option work for me? Then it would be really important for you to speak to your advisor about it. And certainly if you're a client with us here at Ascendant, your advisor would be more than pleased to speak with you about that. And we've got all the relationships and all of that in terms of guiding you through doing this properly.

And in fact, in our client portal, we have a number of different videos where we talk exclusively about policy, loans and best practices and general discussions and frequently. And we have a whole one that's completely geared towards the drawing out. I know because I did the drawings. The explanation of at what point is there concerns or a person needs to be mindful about taxable events that can occur and how you can maneuver through that. Because we're talking about the potential cure being third party lending. But that is not the only solution. There is, uh, there's many ways to skin a cat. I don't know why you would want to skin a cat. Please stop doing that. Very strange thing. But there's multiple solutions on how you can. You can get this thing done, basically. And it doesn't, it doesn't all adhere to only doing it with a third party lender. Yeah, just that. That is the simpler, easier, more prominent path that most Canadians will go walk down and are familiar with. But if you're willing to do a little bit extra legwork, there's another. There's other ways of accomplishing the same thing.

All right, well, let's have a drum roll because Richard's going to share.

Myth number seven that we want to dispel.

I like how they waited till the number seven to do this one. So clients don't have to qualify for a loan. That is a myth. If you're a bank and you're going to issue money from your banking institution to any human being on planet Earth, you're going to ask some questions.

Absolutely.

You're going to want to confirm, how are we getting paid back? No bank's going to lend you money if they don't know how they're getting the money back. They're in the business of managing risk and protecting shareholder equity. So if there's going to be a qualifying process, what determines the extravagance of that qualifying process will be the amount of capital you're looking for, and it'll be the amount of loan to value you want. So if you want to only get 75% loan to value, which is an option with many of these things, a lot of these institutions, once you've passed the age of 55, the qualifying process to get up to 75% loan to value is pretty minimal. There's still a process, there's still something that's required there, but it's really very minimal. But if you want to start going above that line and you want to increase the percentage of access. The more you want to take it up to the limit, the more amount of scrutiny you're going to invite by the bank. That's just rational thinking.

Yeah.

No different than if you're on a house and you Want to borrow 50% loan to value on the house. The bank's going to say, okay, you're retired, you're on a fixed income. Yeah, this is reasonable. Like we can, you know, there's enough equity, we can recover our capital here. Or do you want to now go into a high ratio situation where you access a 95% loan to value on the house? Well, now that's why there's a CMHC premium. That's like there's other scrutiny. That's they're going to do a stress test on, you know what if rates rise, can you still make the payment? Like the level of qualifying goes up substantially.

And when you contrast that with the loan provision that's in your policy contract.

If you're accessing capital in the form of a policy loan, there is no qualifying.

If the total cash value is there and the ratio, if the insurance company says, listen, you can borrow against a maximum of 90% of your total cash value at any given time for any.

Purpose.

There is no qualifying, there's no income verification, there's no credit check.

The question becomes there's no requirement to repay.

There's no, yeah, it's an unstructured loan and we would of course absolutely recommend repayment unless you're in passive income time and you're using it as an insured retirement solution and that's part of your strategy.

Well.

What'S interesting about this.

We talk to people about banks themselves purchasing bank owned life insurance. Now if you go to Uncle Google and you type in bank owned life insurance boli. So commercial banks buy these contracts by the truckload. Now the commercial bank cannot utilize the contract the way that you could, Richard, as a policy owner, the commercial bank is not contacting the life insurance company and saying, hey, can we request a policy loan because we want to pay the executive a defined pension benefit.

They utilize these contracts in a similar fashion, but they're not requesting policy loans from the life insurance company.

But if the banks are buying these contracts by the truckload and they're not standing on the rooftops of the skyscrapers in downtown metropolitan cities, largest buildings in town, they're not standing, yeah, they're right.

Around Bay street there.

They're not standing up there waving the flag going, you guys Check out this bunch of bully wow.

Bank on life insurance. No one's dinging the bell over at the TSX.

Like holy.

So the banks are doing one thing and they're recommending that you do something else but they're telling you that if you have dividend paying participating whole life insurance, we want to dispel the myths of insurance lending because we love this contract. We want your business because we purchase these contracts by the truckload. It's a tier one asset on our balance sheet as a bank.

Which I'm glad I was going to mention tier one because so if anyone doesn't know, in order to get a bank charter and to maintain your charter as a bank, you need to have certain amount of your capital resources in tier one capital and there's certain things that are defined under that list and one of the things that's on the list is cash values. Bank owned life insurance and it's capital.

You'll see people, okay, on the Internets, on the social medias, the tweeters, the Instagram, the YouTubers, the LinkedInners.

And you'll see people who talk about how stupid it is to have dividend paying participating whole life insurance.

Because some financial entertainer out there, some bonehead.

Told them that it was a bad idea.

You mean the guy that dispels a 35 second phone in advice?

Yeah.

Knowing nothing about anyone's financial details and is making ridiculously damaging recommendations that could completely obliterate someone's financial plan.

Here's my thought and I'm going to say this because it just really, frankly just, it's just really laughable because the same person who's demonstrating to people who actually know the anatomy of these contracts, who's demonstrating to these people how stupid they are, they're not going into the commercial bank. They don't go to their commercial bank and walk in and say I want to talk to whomever it is at this bank that's purchasing bank owned life insurance. I think it is an absolutely stupid idea. I've been all over social media posting that and I do business with this bank. I demand to talk to the person who's purchasing these contracts because I think it's really stupid.

My recommendation is that this bank should buy term insurance on all of its executives and invest the difference in banks mutual funds which were created not for the bank but for the customers of the bank.

So look, people, people, fellow Canadians.

If.

Banks are purchasing these contracts by the truckload, if they're publishing an article that dispels the myths around insurance Lending, please. It begs the question, what does that tell you?

If we're talking about becoming your own banker and taking control of this function as it relates to your needs, there's a reason for it.

And they're saying, no, no, wait, how about instead, still, let us be your banker. I know you're going to go and do this and you want to. You. This is what you want to do. And you've been listening to some podcasts, but we're still here. Come on, let us be your banker. That's what their article's saying. It's like, no, no, it's okay, guys.

Like, I get what you want to do over here.

Don't worry, we can support you in that. Let us be your banker. Still, you don't have to worry about anything.

This was a ton of fun and I hope that, you know, we get to do more of this and, you know, trusting that, of course, people find this content incredibly valuable. Continue your journey of learning. You'll see a playlist that popped up. See how amazing our editing group is? That playlist just showed up and all of our viewers on the YouTubes, all of our listeners, thank you. Thank you for being awesome. Drop a comment, hit the subscribe and make the rest of your week great. And Rich, any parting remarks before we have to hop off here?

Don't forget to check out seven steps ca. Get your report.

Yeah. So it's not only seven myths that we dispelled, but there's also seven steps ca. Again, that's seven steps ca Sevensteps. Ca. Ease on over there. You'll be glad you did. Have an awesome rest of your day, Rich. I'll see you again shortly for our next interview.

Talk soon.

Cheers. Bye. Thanks for listening to the Wealth Without Bay street podcast where your wealth matters. Be sure to check out our social media channels for more great content.

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