How Long Should You Pay Premiums? (IBC Canada)

Your debt is someone else's passive income.

Oh, yeah. This is awesome. Yeah, right? Yeah. This is brilliant. Yeah.

So just let that sink in for a second.

The question that we often get asked is, how soon can I stop paying the premium? And that's a very clear signal that there's still not yet a full understanding of the problem and the solution hasn't entirely become clear. Joined today by Sarblogh Gill, of course, my amazing colleague, dear friends, authorized infinite banking practitioner with the Nelson Nash Institute, amazing coach and advisor on our team here at Ascendant Financial. Sarblo, welcome back. What led us to this conversation today was one of the most frequently asked questions that come up at some point in the interaction with a prospective policy owner is how soon can I stop paying the premium? And I was speaking to a gentleman here just a few days ago who's a firefighter. And through the course of our conversation, that question came up. And I asked him, I said, well, you mentioned to me that you read Nelson Nash's book Becoming youg Own Banker. And he said, yeah. I said, well, do you recall the grocery store example? And he said, yes. And so we spent a few minutes just going through the example. So we're going to do that now. But I want to preface this with something to say to anyone who's watching, anyone who's listening, that when we get to the end of this, the question that you'll be asking yourself is, how long can I pay it for?

And so let's work backward from this. And if we go back to the grocery store and we say, okay, look, if we're considering getting into a business where we are both the buyer and the seller of the same goods, in this case, food, and we're considering opening up a store that's going to provide these products to captive customers because everybody needs to eat. So our market is unlimited. We're going to get into this wonderful grocery store business and through the operation of that business, the only way for us to turn over the inventory is to buy inventory to turn over. Would you agree with that statement, Sarblo?

100%.

And so when you are the owner of that store, the more often you turn over the inventory, the more profitable your business becomes, provided there's nothing walking out the back door.

Right?

You don't have employees who are stealing from the business. You don't have owners who are stealing from the business, provided that you've got really good operating methods in place. Well, the more you turn over the inventory, the more profit you generate. But let's follow a very simple example of that. So, Sarblo, you've got the PowerPoints there. You can bring up the grocery store example slide, and let's focus on the canopies, following this analogy. So you've got a canopies. You buy it at wholesale for 57 cents. You sell it retail at 60 cents. Now, that product has to be purchased. The 57 cents has to come from somewhere. It comes from working capital in the business. So think about that. The money is exchanged for the canopies. The canopies comes in the back door at 57 cents. It gets stocked on the shelf so that when a captive customer comes into the store, the captive customer is expecting that when they get to the aisle where the peas are, that there's going to be cans of peas available to buy. The captive customer picks up the can of peas, goes to the cash register, pays retail 60 cents. They walk out the front door. The business owner's happy, the customer's happy. The business owner now has 57 cents to go back and buy another can of peas and can use the $0.03 of profit to do whatever they want with it. They can hire more people, buy more product, expand their business, and so on.

So in all simplicity, Sarblo, if you think about this for a moment, I'm going to put you in the owner's seat.

Okay?

So you're the grocery store owner. You've owned this grocery store for several years. And I sit down with you and I say, sarbo, how's your business going? What's your response?

Well, Jason, it's pretty good. I've owned it for a long time, and it's starting to produce profit now.

And have you thought about how soon you can stop stocking your shelves with inventory?

No, I think the opposite is how quickly I can stock the shelves with the inventory. Because by selling the inventory is how I make profit.

That's right. And so the crescendo teaching moment here is if you think about this in relation to your policy or system of policies before you even get started, and you're already thinking about how soon you can stop putting inventory on the shelves, why are you getting into the business to begin with?

What I mean is that when you create a policy, you're starting a new business from scratch. You're starting a new business that never existed before. And the business's inventory is money. And that money is put on the shelves in the form of premium. First and foremost, policy, loan repayment. Second, more premium, more policy, loan repayment, more premium. And so that's your inventory, it's money. And the grocery store is the life insurance company. You co own the insurance company. The more capital that the insurance company has to work with, the more they can multiply. And so if I sat down with you going back to the grocery store and I said, sarblo, actually I wanted to talk to you like, you're selling a lot of cans of peas and I'd like to offer you the opportunity to add two more shelves of peas in your grocery store. What would your response be?

When can I get started?

Yeah. You wouldn't be saying, well, how soon can I stop stocking the shelves with the peasants?

So that's the key teaching point here, is that remember what was R. Nelson Nash's fifth golden rule?

Rethink your thinking.

And so let's rethink our thinking here. Rather than ask the question, how soon can I stop paying the premium? Try asking yourself the question, how long can I pay it for? And that immediately changes the way that you think.

And the more capital you put in, the more capital you get out. And so if your thought process is, I want to start a business that never existed before and I want to stop putting inventory on the shelf right at the time when the business is becoming the most profitable, then perhaps you shouldn't be in the business.

Isn't that good?

You know, one of the things that you said is, you know, we are creating a business, and this is businesses for captive customers. And we are one of our own captive customers in the business. And speaking to exactly what you shared, you know, when should we stop stocking our grocery store with the inventory to sell? So we think about this from another vantage point. You know, that can of peas that we are buying at a wholesale price and we're selling for 60 cents, initially, it may cost us 57 cents. We have to exchange 57 cents to get one can of pea. But as the business becomes profitable, now I'm speaking about the whole process of becoming a banker and the way we design participating whole life policy. You're at the wholesaler and you want to buy a can of peas and you pay 57 cents. But now the wholesaler is giving you two cans for 57 cents. So now you got more opportunity with the same dollar to make more profit for yourself and your business. And that is what you want to aim for. And once you're there, you never want to stop.

That's right. And so that's why Nelson said, if you're struggling with understanding the concept, go back to the grocery store. Example. Because once you understand the grocery store example, the rest of becoming your own banker is the ultimate in simplicity. And if you still don't understand it, get in touch with an authorized infinite banking practitioner with the Nelson Nash Institute. Get in touch with your coach on our team who can walk you through this example again and show you from a different vantage point how to think about you and your ownership of this business that you're cranking up and the importance of keeping the shelves stocked with inventory. Because here's the other vantage point, Sorbolo. You, much like everyone else, you eat and you need to purchase your food from a grocery store. If you have been shopping at the same grocery store for the past six years and then you walk into that grocery store six years in a day and all of the items that you're accustomed to seeing on the shelves aren't there, the shelves are bare. How much longer are you going to continue being a customer at that store?

Not for long at all.

Not at all. You'll find another grocery store to give your business to. And so thinking about all of the fundamental elements, your money must reside somewhere. What better place to have it reside than inside of your own grocery store? And that's the whole premise behind it now. Yes, the policy is designed in such a way where it becomes eligible for premium offset so that if you make the choice, you understand the consequence of the choice. If you don't have the money to pay the premium, you don't have the money to pay the premium. But when you do start paying the premium again, get those P's back on the shelf so that you, you have product available for captive customers. And the insurance company that you co own has a lot of captive customers who are looking for capital. So let's make sure that we're stocking the shelves and it ties back to the golden rules. Think long range, think three generations past your own. Don't be afraid to capitalize your system. Don't steal the piece, don't do business with banks and rethink your thinking. And that was a big aha moment for me because when I shared that perspective in that moment, I had never shared it that way before.

Yeah.

And so when I was in my office, you know, I've got this picture of Nelson and Nelson gets to sit in on every meeting that I do. Literally. He's literally right in the frame of view. And I just kind of looked over at the picture and I just whispered, I said, thank you, Nelson. You know, you're showing up, you're still teaching and Every time I see the process or the book or a case that I'm working on, the more I see I didn't see. And the person I was meeting with, too, that was an aha moment for him. He was like, wow, that's right. I. I wasn't thinking about it that way.

Oh, Jason, I just want to say, you know, that this process is so simple and doesn't have to be sensationalized. And when you shared this with me yesterday, I actually went home and I opened up the grocery store and I read through it. I was like, man, like, it was always there. And then you saw it differently and you shared it with me. It's like, oh, this is so amazing. We just didn't know what we don't know. So the more we read it, the more we know what we didn't know.

Let's take this one step further. When you've rethinked your thinking and you say, okay, yeah, I get that. So now my thought pattern is, how long can I stock the shelves for? So how long can I pay the premium for? Well, if you have a grocery store that's doing really, really well, and you're in the west end of the city, and then you. You're aware of a bunch of new development happening in the south end of the city, then what are you thinking? I want to open up another store. I want to get another store going. And so now your mind goes into expansion, into abundance, into not looking at premium as an expense, but looking at premium as inventory.

Yeah.

And the more you have on the shelf, the more you have available, the more captive customers, you attract.

A different way of thinking.

Entirely.

And then you get into thinking about, how can I grow? How can I make my system even bigger? It's very liberating when you get there. Versus I was sharing something with Peter earlier. We were doing a live.

Streamyard broadcast on the YouTubes and the Facebooks and LinkedIns and all of that. And one of the things that I shared with him and he had told me after we were done recording, he goes, oh, my God. That was like. I've never heard you say that before. And what I said to him was, your debt is someone else's passive income.

Oh, yeah. This is awesome, right? Yeah, this is brilliant. Yeah.

So just let that sink in for a second.

And so when you talk about becoming your own banker, your debt can become your source of passive income, because you were absolutely required to send the stream of payments away from you. And so if you've got debt, your debt is someone else's passive income.

So own more.

Right. Isn't that good?

Yes.

Everything begins with the way that we think. So my hope is that people watching this can rethink their thinking, especially if they're at that point in their journey where they're considering cranking up this new business where no business existed before for. And they're thinking, how soon can I stop paying the premium versus asking themselves how long can I pay it for? Because the longer I pay it, the better it is for me and for everyone else who shops at my business.

Yep.

And Jason, one of the questions that we as advisors, we get from clients who are very technical and engineered mind when they discover this process, they start looking at the products out there and participating. Whole Life policy has different products. There's this 10 pay, there's 20 pay, there's life pay. So by explaining what you just explained, you just answered that question for everybody.

Yeah.

You know, because you want to have the option or the ability to continue to capitalize the system till the end of time and not be restricted to just 10 years or 20 years or timeline attached to it. Because your need for money is going to be unlimited till the end of time and someone has to control the function called banking. And the more you capitalize, the more stronger banking system you're going to create, the more prosperity you're going to make for your family or your business. So have the option to put the money until the end of time.

I agree. Because again, imagine that you've got a policy that's a 10 pay. If you've put it into place for, for a very defined purpose and you're only looking at it as a life insurance contract and you're not describing taking control of the banking function as it relates to your needs, then that's great, you've achieved your objective and you deposited the premium for that 10 year window, the contract is paid up. Excellent. But when you think about this from the grocery store example, if your grocery store was cranking out profit, you had customers lined up out the door, then you showed up 10 years in a day and there was a big padlock on the front door of the building with a big sign on the front that says we're not doing business anymore. It's a blowout. All the inventory that's on the shelves, once it's sold, it's not being replenished and you're the corporate owner and you're saying, wait a second, I want to order more stuff and you're just not able to do it. Yeah, Would you rather be constrained or would you rather be in total control? Well, I think, yeah, I think most people would say I'd rather want to maintain control and have, as you mentioned, the privilege of being able to deposit premium, but knowing that the policy is in a position where it's eligible for premium offset if you want to exercise that option. Speaking for myself and for all of our clients who really understand this, you couldn't convince them to stop paying the premium if they have the capital outlay. You couldn't convince them to not pay the premium because they know what the output is going to be if they do versus if they don't. And that's such an important thing for people to understand that. Nelson said, this is not an event that involves instant gratification. You're going to use this system for the rest of your lifetime. So why not have the ability to continue capitalizing it? And don't, for heaven's sake, don't be afraid to do that.

Because every extra dollar you put into that system, the better the values are in the policy for the rest of your lifetime. So you create this exponential positive impact just by even making one additional premium payment, it can change the trajectory of that policy for the rest of your life. So you've got to use your imagination and you have to understand what it means to really, truly be taking control of this function. So this was a lot of fun. Again, I can't wait for our next video. It's gonna be awesome. And for everybody, just take a look right over here. You're going to see a playlist, some recommended videos to continue your journey of learning. Make the rest of your day great. Thanks so much for tuning in. Be sure to hit the subscribe if you haven't already. And the bell so you get notified when these amazing episodes get released.