Borrowing From Life Insurance in Canada

Why do I want to borrow money for my life insurance? A Because I can. It gives me the most amount of control over my financial circumstances. My capital never goes anywhere, so it's always growing for me with, with guarantees attached, my future is certain. And.

So why would you want to borrow money from life insurance? I don't get it. What would be the reason anyone would do that? That seems totally bonkers. Well, if you've been watching our channel, if you haven't been watching our channel, you should start. But if you have been, you'll learn that we've got a ton of videos out there talking about the same concept, the same premise of borrowing from your life insurance for a variety of unique circumstances in your life. Now I can tell you personally, I borrow from my life insurance all the time. I have participating, dividend paying whole life insurance which I use as a vehicle, a vehicle where I can store and stockpile my savings, build up a reserve of capital, build it up, build it up, build it up, build it up. As it's building up, I'm getting perpetual growth and perpetual motion on that money. And also for the benefit of doing it, I have this big fat tax free death benefit attached to the whole circumstance. That's pretty cool. Now while I'm building up and building up and building up that reserve of capital, I'm able to take that capital, it's called cash value. With a life insurance company which I co own, I'm a participating, I participate in the profits of the insurance company. As that's building up, I have this cash value. I can pledge that cash value with the life insurance company and I can submit a very simple one piece of paper form, policy loan form, send it in a life insurance company and they issue me a policy loan from the general fund. So my cash value is over here, it's growing, it's got some guarantees attached to it. It's accumulating every single day that I take big deep breaths of air into my lungs every single day as I age. And I can go to the life insurance company which I'm a co owner of and they can issue me a policy loan from their general fund. So my money's over here, still growing. I get a loan issued from the insurance company which comes from a separate line item, a separate account, the general fund of the insurance company. Now that's the power of collateral. The beautiful thing is I never took my money out. My money never depletes or goes down. It continues working for me because it's never touched. However, I get to use opm, other people's money. I'm using the money from the insurance company. Now, myself and a whole bunch of other people that are participating policy owners, we also have a stake in that general fund of the insurance company. So we're all benefiting and participating. When I receive a policy loan, or Jim or Sally or John or Dave receives a policy loan, we're all mutually working together in one pool. And when we pay interest back to that pool of money, the life insurance company's pool of money, that's a benefit to everyone who's an owner in that pool, okay? It's one of the investment line items that they have as an insurance company. Now why would I want to borrow money from an insurance company versus withdrawing or taking out my own capital? Here's the key thing. Anytime that you take money of your own capital and you draw it down, you're dropping it to zero. And you lose not only the time, but you lose the opportunity cost and the compound potential of that money, it can never grow for you again and you can never get the time back. This is the most important thing. You can never, ever, ever get the time back once you lose it. So if I've been stockpiling money in a, in a savings account, let's say for 10 years, and I've built up a big huge savings account, the moment I would draw that money and deplete it down to zero, let's say, to buy a house, down payment on a house, that money inside that savings account can never earn from me again. Now I might get some growth in the house that I purchase, that is true. But the original capital is now shifted from the savings account into the house. If I took that same money and I went and bought, let's say, a car, well, now I own a car. I've just moved my money from the savings account to the car. But that car is not going to produce an income or a future return for me. So I've lost the compound potential of that savings account because I drew it down to zero. Okay? Whereas if I built up my money inside of the insurance contract, it's now housed as capital inside of cash value that will continue to grow every single day no matter what. The worst case scenario is that I die, I kick the bucket and a whole pile of tax free money shows up and solves a bunch of problems for my family. Now that's if the policies on me, I have policies on my children, on my wife, and on other individuals. As I increase the amount of policies I have, I'm Actually diversifying my risk to a degree in bodies, in lives and you know, we don't know what our best before date is. I don't know if you've ever gone and looked in the back of your neck in the mirror. It's kind of hard to turn around in the mirror and look it up. But last time I checked, there's no best before date stamped on the back of my neck. And so you don't know what your best before date is? I sure as heck don't. But I want to make sure that when that day shows up, my family's looked after and I don't leave any problems behind for everyone else because a bunch of money shows up to solve a lot of those problems. It's going to happen. You best prepare for it. So why do I want to borrow money for my life insurance? A Because I can. It gives me the most amount of control over my financial circumstances. My capital never goes anywhere so it's always growing for me with, with guarantees attached, my future is certain. And if I ever kick the bucket, that's immediately resolved. Because the tax free death benefit that's paid will first go and repay the outstanding policy loan. Which means every other person who's participating in that general fund pool of money, the life insurance company's pool of money, everyone that's a co owner, a participating owner, will all benefit from that circumstance because any interest that accumulates gets returned to that pool for the benefit of everyone that's playing the game. I never lose control over the whole circumstance. And because a life insurance company cannot inflate the money supply, they're not allowed to utilize fractional reserve lending like a commercial bank does. I'm now being part of the solution versus part of what many people would call the problem. When we go and do our business with our deposits and our lending, our borrowing circumstances from a third party lender, a commercial bank, we're operating inside of a system that supports a fractional reserve environment where they're manipulating the money supply, creating money out of thin air. And when we were doing our business over here with the life insurance company that we co own, there's no fractionalization that takes place. So for me and my money that's supporting this type of system that I want, I kind of want to vote with my dollars and I want to support the system and I think is for the better benefit of a larger whole of society. It's for the benefit of everyone who's in that mutual pool. And to me that makes an awful lot of sense and it's a peaceful, stress free way of life when you get the banks out of your life. So I hope you found this helpful. A couple reasons why you might want to consider borrowing from your life insurance make sure you have the right kind of life insurance set up. You've spoken about this with a coach. You understand how to repay those loans that you take. It's incredibly important to do that. If you haven't yet got a copy of the book Becoming youg Own Banker, this is a perfect guidebook in understanding this process and how to implement it in your life. More importantly, it's one of the top 10 books you should ever leave because it's going to give you ideas to think on, things to chew on that'll constantly engage your brain every single time you read the book. My name is Richard Canfield with Ascendant Financial and a authorized Infinite Banking Practitioner and I would encourage you to check out some of the more videos that are popping up on the screen. Check out a playlist, keep digging in, keep investing in you and make your day great.