Jayson Lowe describes Nelson's approach to diversification through infinite banking: holding 48 dividend-paying whole life policies across 22 lives. Nelson jokes that diversification across lives means "sooner or later all of them are going to die," triggering tax-free death benefits that help families when they need it most.
Questions this video answers
48 dividend-paying whole life insurance policies.
22 individual lives insured.
Chapters
I'll share with you something that you may have heard me talk about before. But it's so funny. He's standing at an event, he's on stage and he's delivering his talk on the infinite banking concept. And somebody asked him a question. Nelson, how do you address diversification? Because we've all been conditioned. If you're going to invest in the stock market, you should invest in multiple companies across multiple industries and categories so that you are diversified.
Nelson said, well, let me address that for you.
I've got 48 dividend paying whole life insurance policies in my system. 22 individual lives insured.
Sooner or later all of them are going to die.
I'd say I'm pretty well diversified.
I'm diversified in lives, in church and the whole, the whole crowd just burst out in laughter.
And the person who asked the question was a really good sport about it.
And it was just one of those.
Events in moments that it was again just a glimpse into the essence of, you know, Nelson could be quite funny, he could be pretty witty when he needed to, but he was always trying to get across something that was a coachable moment, right? And everyone in the room went, wow. Yeah, like he's got a really good point. If you're diversified in lives and chir and you know that everyone has a best before date, nobody has a lease on life. And when that date comes, and it will come, there will be a windfall of tax free money that's far more than you ever paid into the policy and far more that you ever borrowed against the policy. And the family gets the money exactly when the family needs the money the most. Isn't that good?
Like we've had to fulfill that duty.
Of care in delivering death benefit to grieving families. And we honor that duty of care. Every life insured is now a hero to that family, every single one. And so for us, every time we have an opportunity to put that in place, it's not just for all of the advantages and benefits of controlling how you finance the things that you need. There's a death benefit thrown in for good measure. Every single one of those policy owners means that there's a life insured. That person cared enough to insure either their own life or someone that they have a beneficial interest in. That's who you're in business with.
A very large pool of people who cared enough to do that. What a wonderful group of people to.
