Compounding Cash Growth Using Infinite Banking In Canada

It's like you're climbing a ladder and you've got a certain amount of time to get to the top of that ladder. And as you start to climb, somebody keeps adding rungs to the ladder and you have to get there at the end of that period of time. And these life companies are very good at doing that. They will get there at age 100, that value will equal the death benefit. So you can just imagine the energy that starts to build as you start doing those two things together, adding death benefit and, you know, just the shorting, shortness of time. Because, you know, as I've lived in life, one thing that come really clear to me is that time goes by really quickly.

How exactly do you get constant, uninterrupted compounding growth of cash inside of a whole life insurance contract cash value? How do you do it? How does it work? Today we're going to find out. We're going to show you a little diagram. I'm joined today with my friend Dan Allen. And we are with Ascendant Financial authorized infinite banking practitioners. And today on the Banker's Vault, we're going to talk about cash value and how exactly can you use this growing asset for you, Dan?

Yeah, that's a great topic, Richard, because we constantly get questions about cash value. How's it, you know, what's your growth in my cash value? How does it look? How does it work? So today we're just going to give you a really good look at how it all works. And hey, again, we're talking about the product, not the process, but this particular product is the best tool that we found to help you with banking. So, yeah, it's always great to have knowledge, so we'll help you with that journey and how to learn a little more about cash value.

So we're gonna, we're gonna bring up a drawing here and I'm just gonna do a screen share and this is gonna kind of be our baseline and then we'll, we'll bring up another one as we go. So this first drawing you guys should see up on the screen, this is a nice little visual to help us understand kind of the inner workings or the mechanics behind a whole life contract. You know, I don't know about you, Dan, but I find that, you know, there's an old adage, the picture tells a thousand words, I think is how it goes. And what we're wanting to do is get people to visualize what, what's really taking place. So here you'll see on the screen I have, it says Original whole life death benefit. And you'll see it's a nice level, kind of a gray box there. Starting, we got to start someplace. And that's a fixed point all the way to the end. We have a year. So I have year 0 and 100 over here. So it's kind of looking at age now. Yes, this could be starting on a newborn at age 0 or wherever you're at in the timeline. Maybe you're 60, maybe you're 30, wherever that is, that's the starting block that you're at. And we're going to be looking out to age 100. So we have a little note here. Very important. By age 100, the cash value must equal the death benefit. This is so, so critically important. Those two things must be the same. And it's a contract. Now, Dan, why is that so important?

Well, it's really, you know, when I talk to people and they ask me about guarantees that are, you know, what guarantees are in this process. I, I tell them that to me is the most critical guarantee that you get in that contract. So cash value has to equal death benefit at age 100. That's huge. Like, you can, you know, we know how, you know, people focus on the dividend, they focus on other things. Well, those are all icing on the cake. The real part that matters is that your cash value is going to grow every day because it has to by contract all the way to age 100. So, you know, think about that. You know, the closer you get to age 100, the less time the life company has to grow the cash value to get to age 150. And one of the things that you'll understand that we do and we design policies, illustrations for this process is that we design them in a way that the death benefit goes up each and every year. Again, your behavior is more important than the behavior of the life company. So you'll get to decide if that's the case that you want to follow. But we're going to coach you to follow that method. Get that death benefit climbing, because it's sort of like analogy I like to use, Richard, with people like you that are watching here today is the old ladder analogy. It's like you're climbing a ladder and you've got a certain amount of time to get to the top of that ladder. And as you start to climb, somebody keeps adding rungs to the ladder and you have to get there at the end of that period of time. And these life companies are very good at doing that. They will get there at age 100, that value will equal the death benefit. So you can just imagine the energy that starts to build as you start doing those two things together, adding death benefit and you know, just the shorting, shortness of time. Because, you know, as I've lived in life, one thing that come really clear to me is that time goes by really quickly. You know, I can just remember it seems like Yesterday I was 40, now I'm not 40 anymore. It just seems like yesterday it just accelerates. And hey, that's a thing to learn about how these policies work is that your value has to equal the cash value, has to equal the death benefit. Age 100. And let's get that death benefit up and accelerate that process.

You know, a couple things I love that you said there, Dan. First off, you know, I think anyone who's a parent or a grandparent, that feeling of time moving quicker, moving faster as we get a little bit older, I think it gets amplified by having children or having grandchildren because you see the change in them so dramatically. Whereas when you were at that age, you didn't recognize time to the degree that you do now. And time is a really important factor and it's a critical factor in understanding how whole life insurance and how cash values grow. Now, something you said that's very interesting is that we're really trying to boost and increase that death benefit. And that seems a little bit strange if persons reading Nelson's book or they're hearing this constant becoming your own banker for the first time, they're kind of wondering why? Why would I be increasing that death benefit? And here's the reason why. When you truly, truly understand that this contract by age 100, the cash value death benefit must be the same. When you really get clear on that, you understand the way to grow the cash value is to increase the death benefit. The more you boost that value up, the more that you're forcing the insurance company's hand to accumulate more cash for you. So Dan, we often ask this question, what have you thought more about today? Cash or dying?

For me, it's cash. And I hope everybody's on that page because that's a much better headspace to be in. So yeah, you don't want to think.

Too much about dying because that just makes you low hanging fruit for gravity.

Exactly.

That thing will pull you six feet under. So you got to be careful.

It makes a difference in what you put in this mind. So, you know, be thinking about how you're going to improve things in life and you know, build wealth for Your family, much better than thinking about the other one.

So if, if we're really thinking about cash, and that's our focus, what we're trying to do here, then why does the death benefit matter? Would be the question that people ask. And so we're going to go back to our drawing and we're going to expand on this a little bit. So here we go. On our drawing, we've got our starting death benefit. And doesn't matter what the amount is. It could be 100,000, 500,000, a million dollars, $2 million. We've got to start somewhere, wherever your starting block is. Then as we accumulate, we have minimum premium. So the original whole life death benefit, that minimum amount is what decides what we would refer to as the base or the minimum premium. Then you have a flexible amount that you can top up on the policy, and that instantly goes and buys what's called a paid up addition. Now, there's a confusion in the marketplace. People think that paid up is cash value, or they'll say they'll get a little lazy and they'll say it goes straight to the cash. Well, that's not really true. It's important to understand what is the process, what's actually happening. I call it sequence of operation. So what happens is you pay a premium, the base premium. You can also pay a flexible portion above that, an optional amount. You know, you work that out, you design that with your coach that will go to the paid up additions. And paid up additions is death benefit. So it buys like a miniature whole life policy all on its own, a single premium life policy. And that stacks up on top of the one that you already have. Once you own that death benefit, the insurance company says, oh, geez, Dan, we're on the hook for this death benefit. You know what we have to do? We have to grow the cash to equal that new death benefit. We just increase the level of guarantee on this person's contract. And so now because that increase is there, you're also entitled to earn a dividend. If the insurance company's profitable at the end of the year, well, that goes on top too. That becomes another paid up addition. And so these stacking Lego blocks, over time it pushes the death benefit up, which is basically, you know, imagine that you had a rope tied around you. You're like playing tug of war, and the other team is much stronger. Well, what they're, you know, and they're just, they're just towing you around. It's like you're towing a piece of farm equipment with a chain and you got a big old tractor, big diesel engine. Well, that death benefit is the tractor and that chain is attached to the cash value and it's just dragging that cash value up, kicking and screaming the whole way to Dan's benefit and to Richard's benefit and to your benefit if you're a policy owner. Here's the beautiful thing. As that death benefit climbs and the cash value is chasing, chasing, chasing after it, it's playing tag. It's literally trying to get at age 100, it's going to slap it on the back to the death benefit and say I gotcha. And once that happens, you know, the contract is now met its obligation and people think, well, now that I'm age 100, does that mean it stops? The answer is no. If you're still alive past 100, they have to keep growing that contract for you. You have access to whatever that cash value portion is that's accumulating as a source of equity. You can access it very easily. It's one piece of paper. With some life companies it's as simple as a phone call. And that money can get direct deposited or a check goes out in the mail right to your bank account. Doesn't matter if you're an individual, a business owner, a farmer, you know, whatever it is that you do, as long as you're capitalizing a policy that you own and control, you get to benefit from this process.

Yeah, and it's really, when you think about it, you know, we always talk about, you know, compounding and that's what you're doing as you, you know, utilize these properly designed dividend paying whole life insurance policy. You just keep on compounding the value. And you know, that's, that's one thing I love about this, is that the values are going to keep on growing. It's like uninterrupted compounding. And where else do you get that? Where else you have that opportunity in life? It just keeps on building on building and building on itself and it just gets stronger and stronger. And yeah, it's, it is a great platform to practice the infinite banking concept on. You don't have to use it, but it's the best tool we found to do it with and we're just giving you a little insight as to why.

Now I'm going to take us back to our drawing one final time here and we'll bring this up and close this off. Dan. So you can see here we've got our whole life death benefit. We've built up paid up additions, stacking up on top, those dividends, you notice how that this is the death benefit created by the dividends received. This isn't the dividends themselves. This is the dividend comes in and then it buys more paid up insurance. So it stacks on top and it stacks on top and it stacks on top as these things accumulate. Notice that we've got this white line here. This is the representation of the cash value that's your asset. It's growing and it's growing and it's growing and it's chasing after these things as they accumulate and, and boom, when it hits 100, that thing's got to be equal. So just imagine every single thing and I'll, I'll bring up a drawing tool here. Every single thing that's below this line is equity. And you can access any of that below that line on any given day with no questions asked. It is total and absolute control. That's what we want to see for you. That's why we want to teach you all about how this concept works. It's important to make sure you're subscribed to the channel. Keep learning about how to implement this in your life. Get the source material. Make sure you watch the documentary film. This is Nelson R. Nelson Nash. Make sure you get a copy of the book. Become your own banker. Because the more that you see, the more you see you didn't see. And when you understand the foundation of the contract that by age 100, the cash value must equal the death benefit, once you get clear on that foundation, everything else becomes much easier. Now, Dan and I want to thank you for watching this. It's been a ton of fun. I hope you learned a ton. And we can't wait for you to check out the more videos that are showing up on the screen. There's a playlist that just landed. Automagically, make sure you continue your journey of learning. Gobble up that content and keep growing your financial knowledge.