This video (by Jayson Lowe) visually demonstrates how making deposits into a private family banking system (structured whole-life policy) produces accelerating cash-value accumulation and growing tax-free death benefits. Using a 50-year-old business-owner example with $50,000 annual deposits for varying durations (5, 7, 10, 15 years), speakers show numeric outcomes at ages 75–100 and illustrate that modest additional funding (e.g., 3 extra years = $150k) can produce disproportionately larger increases in accessible cash value and legacy (examples: $250k in = ~$245k cash after 5 years; 7×$50k = $350k yields ~$1.1M cash at age 90 and $1.3M death benefit; adding 3 years raised cash to ~$1.7M; 15 years = $750k inputs → ~$2.4M asset).
Questions this video answers
$50,000
Seven years (7 × $50,000 = $350,000)
Approximately $245,000
Cash value ≈ $1.1 million; death benefit ≈ $1.3 million
Approximately $1.7 million
You're going to be at a point very quickly where when you put in a deposit, whether it's 10,000, 20, 50, 100,000, you put that deposit in, the policy is accumulating greater than whatever that amount is, and it does that each and every single year thereafter, and it becomes extremely efficient.
With that in mind, we're going to jump into a little bit of a visual demonstration. We're going to look at the impact of what making deposits into one of these private family banking systems looks like. And we're just going to kind of walk through this visual example and we're going to talk about, hey, what happens if you do kind of the bare minimum, which we don't really recommend. And in fact, Nelson Nash says on page 85 of the book, which is one of my favorite pages of the book, at point number two, if you knew at passive income time, you would be getting back every single dollar that you put into a system potentially tax free, would you ever object to putting any more money into it? That's a rhetorical question. I mean, the obvious answer is no, but the reality is when we build and design these things, that's exactly what transpires for people. And, you know, you're going to be at a point very quickly where when you put in a deposit, whether it's 10,000, 20, 50, 100,000, you put that deposit in, the policy is accumulating greater than whatever that amount is, and it does that each and every single year thereafter, and it becomes extremely efficient. And we showed an example of one of your policies where you're depositing 20,000 in, and at the end of this year, there's going to be just shy of 29,000 in accumulation in that one year period. So you put your 20 in, you have access to the 20, plus an extra 9,000 bucks, and the death benefit went up in the same time frame. So here we go. I'm going to share my screen and we're going to look at a little bit of a tool here. And so maybe just, you know, I can't see the chat box right now, Jay, but maybe just make sure you can let me know that you can see everything here. I'm sure everyone can see you're good. Okay, Beauty. So what we're going to look at, guys, I'm going to try to tie this into an example that Jason's going to go over in a second where he's going to be looking at, you know, a, you know, a business owner who's going to be drawing a retirement income and that sort of thing. So this is going to give us a bit of that visual demonstration and Jason's going to walk us through more of the case study example. So over here you can see on my screen I've got, looking at deposit numbers, annual deposits, I have a deposit number of years. Okay, so we're going to be moving this up and down a little bit. We've got an age slider over here and then down here we've got a timeline so we can scroll through different ages and we're going to see the values of these ages and then some, some really colorful bars. So in our example here, I'm going to start with this 50k version, 50,000 in annual deposits. We have a 50 year old business owner and this is what they want to deposit into their system. Again, your number could be bigger, could be lower. Your number is whatever it is. Your coach can help you work through figuring out what that number is. That's part of what we provide. But for our example here, we're going to work with the 50,000 number. Now out of that 50,000, that is the top end, that's the maximum that the policy will hold. In this example, we built it to accept that amount of annual deposit, but the minimum requirement might only be 20,000, you know, 20, 25,000 somewhere in that range for this individual. So there's a minimum amount that they're doing and then they have this, this maximum component that is allowable under the insurance companies rules and regulations that were allowed to shove into that policy. So there's a lot of flexibility there and it gives you a lot of autonomy and options which were all about, you know, having those options available. So first thing I'm going to do, I'm going to put this up to seven years of deposits. Now you guys will see a lot of very colorful green bars and yellow bars in here. So this very first bar is showing us the total cumulative deposits, cumulative deposits over the lifespan. Then we have this other green bar in the back. This is showing the cash value, the asset of the cash value accumulating and growing. And then back here we have the legacy value or the debt death benefit. Now I want to point out something very important at the back end here. At age 100, in this example, we put 50,000 in for seven years. Again, we would always recommend doing more than that. I'm going to show you the impact of that in a moment. But we've put in seven deposits of 50,000. At age 100, we have 1.5 in cash value and If I hover over this legacy bar, we have 1.5 in death benefit. At age 100, the cash value and the death benefit must be the same. They have to match because the insurance company must grow the cash value to equal the death benefit. It's chasing, chasing, chasing, chasing after the death benefit. It's like the game a tag. When age 100 hits, you know, the, the, the cash value is it and it gets to age 100 and it goes and slaps the death benefit right on the back and says I gotcha. You know, you're it at that point. That's kind of what's taking place. Okay, so here's what I want to do. I'm going to take this, this slider here. We'll leave it here for a second. We're going to add some more deposits in a moment, but I want to summarize a few things. So we started at age 50. Let's take a snapshot view five years later. In this example, we've put in five years of deposits. $50,000 for five years is 250,000. And we have a cash asset of 245. So we have access to most of the money we've accumulated. Not, not all of it, but most. We're about $4,000 shy of what we've put in. But we also have this big huge tax free death benefit that's accumulated. So in essence in that first five year period for this individual, it's really only, only they're only out of pocket $4,000 to have 1.1 million of tax free death benefit that is always accumulating and a cash value that is always accumulating. So here's what's really interesting. Let's take that out now. Five more years. We're at year 10. So we started at age 50, we're now at age 60. We've put in 350 of deposits. That's our seven years. No new money has gone in for three years because we stopped in year seven. Again, that's not what we recommend. But in this example, that's what we're showing. We have cash value now 414. So we have access to every dollar that's contributed. And the death benefit has additionally gone up. Now what I'm going to do is I'm going to scroll this all the way down. I'm going to pick an age out here. So let's pick the mid range there and I'll use 90 in that range. That's the one that we'll use. So you can see at the back end of life, we made seven deposits of 50,000. That's 350 over that time frame. We did not put any additional money in for the rest. That was our total max of deposits. And we have an asset of $1.1 million. Did we get all of our money back? Say yes. Okay. Now, could we have been using that capital all the way throughout that entire time frame? The answer is also yes. And now at age 90, the cash value asset is 1.1 and the death benefit is 1.3. So the cash has to keep growing to reach that 1.3. We haven't hit it yet. Okay. Another thing to be aware of. Here's what I want to show you. What were to happen. What were to happen if we funded three additional years? What if we put that 50 grand in for three more years and we went to 10 years of deposits? What kind of an impact does three years of 50 grand, which is 150,000 of increased inputs, what kind of output can we create for that example? So we've got 1.13 on our cash value asset. And I'm going to increase now. We're going to add three years of deposits. Okay, there we go. We added three years of deposits, which is 150 grand, and our cash value moved now to 1.7. That's a pretty big difference. So we were at 1.135 and now we're at 1.7.
So we have almost a $600,000 increase in the total cash value asset column for three additional deposits on the front end. In other words, the impact of your deposits and what it creates over a lifespan is dramatic. So the more you can put into your system, the more potential of what you can access from it at all phases of life. One of the beautiful things about this type of a policy, when it's designed, the way that we set these up, is that you have uninterrupted compounding on every single dollar that enters into that machine. That's what it is. It's a machine that has. It's like a car that only has one one, you know, gear. It only goes forward. There's no reverse gear in it. It can only move forward. And it's like, it's always speeding up as it goes through time. So it's very, very powerful. So now, well, what if we happened to put a couple more deposits in? What if we went all the way up to 15 years? So now we've put in 750 and we've got 2.4 in the asset column. So you can see the impact of what these deposits do into the machine. It's very, very effective over a long period of time and over a short period of time. And every single time that these values are growing, it's all protected by this death benefit. So at any point in time along the way, if this individual was to, say, pass away early at 75, well, they put in 750. They have a cash asset of 1.4, more than double what they put into the system and they have a tax free death benefit of 2.2. So if they, heaven forbid, were to pass away at that stage, let's say, you know, I always like to refer to it as getting taken out by bus. I live in Chilliwack, there's not a lot of buses in Chilliwack, but I used to live in Edmonton and there was buses there. So if you got taken out by a bus, in this case, $2.2 million of tax free would pay out. And if there was an outstanding policy loan, let's say of $1.4 million, that gets returned to the life company first and the net differential gets paid out tax free to your beneficiaries. In other words, this person was able to use all the money they put in, plus a whole bunch more, then also leave a massive tax free benefit behind. So this is, you know, really what we're showing here is just the power of deposits over time and how much of an increase in an impact that can make as we move forward with a system like this.
