Jayson Lowe explains how Infinite Banking Concept loans work through whole-life insurance. When you borrow against your policy, the cash value keeps growing, you pay no income qualification, and you control repayment terms. Interest you pay gets returned as dividends, and outstanding loans are settled tax-free from death benefits.
Well, when you initiate a loan, you control the loan repayment terms on that loan. Whereas if you initiate a loan from a bank, while you have to qualify, you have to consent to bank's loan repayment terms and you cannot really skip a payment as compared to when you initiate a loan from the insurance company. There is no qualification, there's no income check, none of that. It's just hey policy owner, do you want money as loan to be sent to you via check or you want to have this money directly deposited into your bank account? That's the only question insurance companies ask.
How do payments into IBC benefit me? This is a follow on to our first video in this series about IBC is not about saving interest payments, it's about benefiting from payments throughout life. Payments don't end. Have you thought about who's benefiting from all that money and who it's being put to work for? How do you benefit from payments via implementation of the infinite banking concept?
Peter and for those who haven't watched our part one on this video, make sure that you do so. You can leave a link under the description. So.
When you are initiating a policy loan by using this process of becoming a banker, so you initiate a policy loan to accomplish the objective of use of money and when you initiate a policy loan, your own cash, so called cash values in the policy, they continue to grow no matter what happens. Because when you initiate a policy loan it does not come from your policy, your policy uses collateral, your cash continues to grow in the policy. The loan comes from insurance company. So when you're borrowing money, in this case someone else's money, which is insurance company, you have to pay interest on it because it's a loan, it's not your money. Right. Now here's how the payments benefit you individually. Now we talked about in the previous video how it's going to benefit the business and the co owners of the business who are participating policy owners and I'll touch base on that but I'm also going to talk about how it's going to benefit you as an individual. So when you're making a loan repayment back on a policy, there's interest on it. So when you're paying back the interest, because we want to treat this exactly how we would treat a loan from a commercial bank, we're going to go pay interest to the insurance company. So the interest portion on that loan becomes profit for the insurance company and the profit for business, it gets distributed as dividends to owners of the business and the owner of this Business called this insurance company is people who have a participating dividend paying whole life policy. So that's why there's a word called participating. Because by having this policy, you participate in the profits generated by the insurance company. And one of the ways they make profit is by charging interest on loans. And that profit comes to you and everybody else's dividend. So when you're paying back the interest on the loans, you are going to see a portion of the profit back as dividend. So everybody benefits from it when someone else pays the interest back on the policy loan you're going to benefit from. So that's the collaboration or the abundance mindset. Right. So that's the holistic benefit. Now how it benefits you individually? Well, when you initiate a loan, you control the loan repayment terms on that loan. Whereas if you initiate a loan from a bank while a you have to qualify, you have to consent to bank's loan repayment terms and you cannot really skip a payment as compared to when you initiate a loan from the insurance company. There's no qualification, there's no income check, none of that. It's just hey, policy owner, do you want money as loan to be sent to you via check or you want to have this money directly deposited into your bank account? That's the only question insurance companies ask. So when you're borrowing money, there's no qualification, there's no income check. So it's smooth, easy process. But at the same time you control the repayment terms of the loan. So that's one benefit. The second benefit is you can change the payment. You're not set with the payment because you control the repayment. You are now the banker in the transaction. You can increase your payment, pay off the loan in less time, you can reduce the payment, stretch out amortization, you can take a vacation from the payment. So you are in total and absolute control. The second benefit is total and absolute control. Now compare that with if you have requested a loan from a bank, can you skip your payment? No. Can you reduce your payment? Maybe. But you have to qualify and the bank has to approve it. Can you make more payment? Yeah. Banks would love you to send them more money. The third benefit is when you are making a loan repayment back. A policy loan never interrupted the growth of your money and you are making a loan repayment back while your money continues to grow in the policy every single day. So if you are making a loan repayment back, your money is growing just by virtue of how this works. Because you're paying back and the money is growing. You're able to re access everything that you're paying back to the insurance company immediately as you make that loan repayment for that particular month if you want to. If you're paying a policy loan back on a monthly basis, you pay back the loan, you get to re access everything that you put back for that transaction. Whereas if you make a loan repayment to the bank for that transaction for that month, how much of that money are you able to re access without qualifying again?
The fourth benefit is to you as an individual is the tax free death benefit. God forbids, if the unlikely happens and you have a policy loan outstanding and you die while there's boatload of tax free death benefit attached with the policy, a portion of the death benefit will be used to extinguish any outstanding loans with the insurance company and the remaining will go to your beneficiary. So you're going to leave money behind for your beneficiary, but you're not going to leave any indebtedness behind for your beneficiary or your family. Whereas if you have loans outstanding with a commercial bank and that occurs, and if you don't have any outstanding insurance policy, you're going to leave behind indebtedness to the family. So, just to summarize, there's four things. First thing is control over accessing loans. When you access loans, you control.
How much you want to request. There's no qualification, there's no income verification, insurance company would just give you money, no questions asked. The second is the control over the repayment terms. You control the repayment terms of the loan. You decide what to pay back. You can increase the payment, reduce the payment, take a vacation. The third thing is as you making that loan repayment, you are immediately able to access that money again without qualifying because you're paying back into an ever increasing pool of capital. The third thing is the tax free death benefit that is there. And it's there with a good measure, something unlikely happens when death occurs. The tax free death benefit will pay off any outstanding loans and your family gets the remaining money and no indebtedness.
