Jayson Lowe explains why dividend-paying whole life insurance works for infinite banking in Canada, while universal life and other insurance types don't. The strategy relies on specific features of participating whole life policies that other products simply lack.
Can this work with other types of insurance? Good question. I get this a lot too. So IBC or infinite banking, the process as Nelson has described it, implementation of this is only meant to work with and only designed to work with dividend paying, participating, whole life. It is the implementation tool. It is the means of how the concept is implemented. You can get other types of inference and some have cash value. You know, universal life is one of the common ones out there. However, there are differences between that type of contract and there are a lot of reasons why Nelson specifically doesn't consider that as the viable option and the appropriate option for setting up these kind of plans. So if someone is saying that they're going to help you get an infinite banking style plan and they're going to go and get you that type of insurance, well, you might have good insurance, I don't know. But you don't actually have an infinite banking style plan because technically that is against what Nelson's rules are. The other thing is they do need to be set up correctly. Now if you have term insurance, first of all, great, you should have insurance. It's important. Depending on who it's with or where it's at, you might have a conversion option that we can work with there that could be very handy. We've done that, you know, lots of times with people.
