Infinite Banking Concept Key Essentials You Can't Ignore

Your life insurance policies. I always joke with clients. I say it's like going to buy a car. Like they all get you from point A to point B, but depending on your objective or what's important to you. Like, not all vehicles are built the same, not all vehicles can do the same job. And it's the same thing with life insurance. Just because you have a life insurance policy doesn't mean you can become your own banker. And just because you saw a dividend paying whole life policy or some kind of whole life policy doesn't mean it was actually designed correctly or it was the right tool to implement the process. And that's the key point that you just kind of mentioned. The process of becoming your own banker, the infinite banking concept actually has absolutely nothing to do with the life insurance policy or the life insurance industry. Nothing at all. It's just that it's a. It's a process to allow you to take over the financing function as it relates to your needs so that you have ready access to capital and you can take advantage of opportunities when they track you down, or you can solve problems that show up inevitably with life with ready access to capital. Canada, you want to become your own banker. You want to implement the process of becoming your own banker. The infinite banking concept or the family banking system, right? And what happens? You get in touch, you've watched a video, you've scratched the surface. You're like, hey, this sounds like a good idea, I'm totally interested. And then you get on a call with one of my amazing teammates, like my colleague here, Jinjin Fung, and you say, okay, Jinjin, tell me how's. How do I implement this process? We've got 15 minutes. Let me know how do, what do.

I got to do.

A lot of time. The first question we ask is that, dear client, have you get a chance to read this book? A lot of time after the call, I feel like I sounds like a book salesperson. I feel like I'm selling this book. But this book is gold because Nelsonesh, he used to teach this concept for 10 hours. It's a long seminar, isn't it?

Vern, you were mentioning. This is so good. So Jingen, you were, you said, we're, you know, we're thinking of a topic to discuss today. And we open up the book and you said, I love page three, the introduction to the book, because you said it answers you. You hit the nail on the head. This page answers a lot of the frequently asked questions. So let's sort of go through it. My point Though that introduction was that, you know, this concept isn't meant to, it's not a product for you to buy. It's. It actually requires time, effort and energy to learn and understand how this process works. To Jingen's point, after a one hour meeting with a client, if you haven't read this book or read it multiple times or consumed a ton of our YouTube content here, then it's impossible for you to implement the process. Because our job as a practitioner is to coach you to implement a process to become your own banker. So sometimes people say, well, who you know, this process can help anybody. It can, but it's not a fit for everybody. Well, who wouldn't be a fit for, well, it wouldn't be a fit for somebody who's not willing to make it a priority to invest some energy in learning how the process works. It's like if you're going to invest in anything like Nelson would teach in his book, you should take some time and effort and energy to study and understand that investment. If you're going to get into a new business, Jingen like, wouldn't it make sense for you to learn about the business, maybe get a mentor, maybe take some formal training? Like you don't just roll out of bed one day and say, hey, I'm going to become a real estate agent or I'm going to become a mortgage professional or I'm going to become a doctor. You have to put energy to study that profession so you can be proficient at it. Why would becoming your own banker be any different?

Exactly. You not only you need to invest some time to learn about this and testify yourself. This is a, this is not a scam, this is the right thing to do. Then you need to put your some time to research and you know, and then we are here. One of the core value here, ascendant Financial is empower with education. We want, encourage you to learn. And also you wanted a good coach. You just mentioned you want someone who did this, done this, been through this so that you don't have to reinvent the wheel. So great coaches to support you on.

This a hundred percent. And the whole idea behind that is, are you going to be better off if somebody does something for you or tells you the answer? Or are you going to get a lot more value if you do the work yourself and you do the digging and you learn on your own with the guidance of the coach? So who was that that used this amazing. Oh, it was Jason the other day we were on a call and he said, you know, the next time your client says, hey, just tell me what I got to do, just say to them, look, I want you to imagine that I'm your personal trainer. We meet at the gym. Now, are you going to produce better results if I lift the weights for you, or should you be the one lifting the weights?

Right, I should be the one that training myself. Right.

Like, that is like so simple and bang on. And you got to be patient with the process. People say to me sometimes, jingen, okay, Vern, I've binged all your content on YouTube. I've listened to all the Wealth Without Bay street podcasts. I've read Nelson's book multiple times. I've listened to some great content out of the States. Like, I still got a few more questions. And I go, well, questions are good because questions create clarity. And I'm glad to hear that you have some questions because I've been implementing this process myself for six years and I talk to thousands of people about this concept and I still have questions. It's not just questions, but it's also, what would Nelson say? The more you see this process, the more you'll see you didn't see, like, Gingen, have you ever picked up the book and read a certain section and I literally sometimes scratch my head and I go, when did they put that in there? Have I ever read that before? Because it's just like, it hits you in a totally different way, right?

Yeah. And learning is ongoing process. There's no end goal to it. And we continue to rethink our thinking. So maybe today, I think by reading this book, I think to this level, and next day I read it again, my thinking goes a little bit deeper. I have a little bit rethinking towards it based on my experience and things happening around me. It just continued to growing with this book. I feel this book is very profound. And Nelson used to teach us for 10 hour. You know, it's really about how we think. At the beginning. When I first get to know this book, I feel like he talk a lot of things, just get to the point. And then later on I realized everything he says is a point at some point that we never even think. Think about.

Gingin, you are so bang on right there. Okay, okay, I get it. I get. I've actually talked to people who said that. No, I get it, I get it. You know, like, like. But let's go and say, okay, well, to your point, I used to be like, hey, let's go. Like, I just want to get to the the meat. But Nelson wants you to think because I hate to break it to you, Canada, most people don't think. What's that quote? There's a quote. I can't remember what quote that is but what does it most people don't think. Most people think they think and I don't know what it is, most people would rather die before they think or something like that. But just think about how automatic life is now. You got dingers and buzzers and like all this stuff is automated and things are already happening. You're in a routine. So you have to just really take some time to think and then rethink your thinking. And everything that Nelson puts in his book requires some thinking. In fact this is just something to think about right here. Why would somebody expect to go to watchibc.com get access to the 90 minute webinar, the introduction so you can better understand how this process works and what the problem is that this process actually solves. Because don't worry about any kind of solution before you clearly understand the problem. So go to watchibc.com and get access to a 90 minute webinar. But it's a 90 minute webinar. Why would anybody think after a 90 minute webinar that they're going to be some sort of an expert on the process of becoming your own banker? When the pioneer himself used to coach people and teach a live 10 hour session that was really just an introduction to the process of becoming your own banker just for them to start to think and imagine what this process could do for them and their family. Right.

That's a very good point. And you know we are living in a very instant gratification era and and people wants to know instinct, give me now, tell me now. And I used to be very alert when someone say let's do this, just give me the money, let's do this investment. And then I don't know anything about it. Right. Or put your money in this fund and it will generate this amount of, this amount of money because it's very easy, it's very easy for me to do that because it doesn't involve any learning, doesn't any involve any research. But what does it that rely on you rely on someone else, right? To manage that fund for you rely on someone else that you trust that could take care of you. Why don't you put that in your own hands that I want to know what this is and I want to research in this.

You raise a really good point because this is a really touchy subject and it's unfortunate, but there's so many people out there who say, you know, I got burned, I got ripped off. This happened, that happened. Well, the reality of it is that is 100% your responsibility. You are the one who made the decision to take advantage of that thing. Or, hey, this guy gave me false information. Well, how much time and effort and energy did you do to really understand what the concept was or the product that you were buying or the investment details or whatever? A lot of times clients get here and they have so many questions about the dividend paying, participating, whole life insurance contract. It's a fairly straightforward contract, but they have all these questions about it and they, you know, sometimes people use that word. I'm a little skeptical. I go, okay, fair enough. Do you have a mortgage? And they go, yeah. I go, tell me, what was your experience like having read through that entire contract? And they go, I didn't read the contract. I go, oh, isn't that interesting? You purchased a $500,000 home, half a million dollars that you're now agreeing for 25 or 30 years or whatever it is to pay a certain payment, to pay interest rates. They don't understand how the interest rate works. They don't understand that. They don't even understand that it's an on demand loan for the most part. But people don't actually realize that most loans, if not all loans in Canada are called on demand loans. And that means that the banker and the bank owner can call that loan and you have to figure out a way to pay for it or you gotta give up your house. Right. So most people have no earthly idea that that's even a thing. But interestingly enough, you know, they're signing for, they're buying houses, they're buying cars, they're opening up different at various accounts, and they really don't take the time and effort to understand that thing that they're doing. But this is a process that, you know, we're gonna. Is gonna put the power back into your hands. And this is the time where you actually should be diving in and doing the reading and learning and understanding so that you have more power and control. Jingen, you raised a good point about something else on this page. So the first piece that we touched on is don't expect to know this overnight. Don't watch a couple videos and think you're gonna get it. Don't be frustrated with yourself or with the coach that you're talking to if you can't the concept or, or see how it's going to benefit Your family after a 15 minute phone call because this is a 10 hour seminar. That's what this book is, is representing. But then the ne. The next thing that you pointed out, Jingen, is you said that this page is so powerful because it answers a lot of the frequently asked questions. For example, how long the insurance industry has been around or this tool that we use and the track record that it has and how life insurance companies put money to work. And what about. What's one of our favorite questions? Hey Jingen, if this concept is so good, like how come more people aren't doing it? How come more people haven't heard about this? What did you say to me before we started recording?

Yeah, I know a lot of people, first of all, a lot of people hear this is a life insurance, life insurance product. They close a book and say bye bye to this book. Right? Because people has a lot of opinion on that. And then the second thing is I had life insurance policy. I had something like this. How come nobody talk about this? Is this new? Is this something new? So I really like Nelson mentioned at the first paragraph. So his first sentence, we just went through his second sentence is that, you know, it is education that the life insurance industry should have taught during the last 200 years. Unfortunately, the industry has concentrated on the death benefit qualities of this contract and has enacted to adequately describe the financial capabilities that it presents for the policy owners. So, so, so the first, first craft paragraph already answered the question about how come most people don't talk about that even though this is related with life insurance. But it's not a regular life insurance that we total, we usually think about.

Yeah, you're, you're bang on Jingen. People, you know, people have opinions or they heard something or hey, yeah, I know I saw one of these policies once and it's like, you know, life insurance industry or life insurance policies, I always joke with clients. I say it's like going to buy a car. Like they all get you from point A to point B, but depending on your objective or what's important to you. Like not all vehicles are built the same. Not all vehicles can do the same job. And it's the same thing with life insurance. Just because you have a life insurance policy doesn't mean you can become your own banker. And just because you saw a dividend paying whole life policy or some kind of whole life policy doesn't mean it was actually designed correctly or it was the right tool to implement the process. And that's the key point that you just kind of mentioned. The process of becoming your own banker, the infinite banking concept actually has absolutely nothing to do with the life insurance policy or the life insurance industry. Nothing at all. It's just that it's a. It's a process to allow you to take over the financing function as it relates to your needs so that you have ready access to capital and you could take advantage of opportunities when they track you down. Or you can solve problems that show up inevitably with life with ready access to capital. It's called the banking process. Somebody else is controlling and owning that banking process. Your money is flowing away from you. That's the problem. The solution would be to find a way to implement becoming your own banker so that the money can flow back to you and your family, so you're collecting and accumulating the cash. But wouldn't it make sense? If you want to solve any problem, you need tools. You need tools to solve a problem. Like if my truck is making a noise, I'm not the guy who's going to solve that problem. I can tell you that right now. I'm going to build a team. I'm going to get somebody to help me with, with that. Okay? But they have tools that they need to solve that problem. If you want to solve the problem called banking and you want to become your own banker, you need to have a tool to implement the process. You can use any warehouse, you can store capital anywhere and you can borrow the money out of your, you know, borrow. You can take the money out of your own policy or your own tool and go and finance the thing that you need, whether that's an opportunity or a vehicle. And then you pay back the tool with more interest. You pay interest that would have otherwise been paid to someone else's bank. Okay? But the problem is that if you use a shoebox or a toilet tank or a safe, it's not a very efficient warehouse to store capital. So the dividend paying, participating, whole life insurance contract is just the tool that we use to implement the process. Just because you have a policy doesn't mean you're going to become your own banker. And to your point earlier, Jingen, you know, this is not a knock toward your life insurance professional you're working with or whatever. It's just the reality of it is most life insurance professionals have no earthly idea how this concept works or what it is. They don't actually have the training to be able to coach somebody on how to implement the process. In fact, the foundation of the training ground is implementing the process yourself.

Right, Jingen? Do you practice what you teach.

Exactly. So that's why, you know, it's important to have a coach that has done this education and also practice in their own lives and they can guide you through on this process. And don't be disappointed. I mean, I had policies that are not properly designed for this process. And all you can do is one of our coaches are very happy to review this policy for you. So we will give you guidance. Maybe what you have is already okay to use for practice becoming your own banker. You just need someone who has this experience to teach you and guide you on that. Now, nevertheless, is important because life insurance has been around for 200 years. This is definitely not something that is brand new, but you just need to find the right person to teach you how to use this tool and design this tool properly. And that's what the first paragraph of Nelson's book talk about.

You know what? That is so awesome. I had a client of mine, he's a really good friend of mine, and he started to, you know, learn about the process, right? He started hearing about what we're doing and stuff. He gets the book, he starts reading it and then I get on a call with him and he goes, you know, Vern, he goes, I. I think I got one of these things. Like, I think I have one of these policies. I said, oh, really? He goes, yeah. So he starts telling me that he had a friend who was like high level. Like he was a. I think he was a sales associate or what have you at the time. He said, he's doing something different now. He's in management role with the insurance company still, but he's still in the insurance industry. And he says, but this was like 20 something or maybe, maybe 18, 19 years ago. He, I was, he goes, I was about 30 because I was making really good money. This is my client talking because I'm making really good money. And my friend was doing life insurance and he said to me, hey, just buy one of these things. You know, I didn't know. I had no idea what it was. I was making good money. He kind of twisted my arm and he goes, but I was, I've been putting $500 a month into this thing since for like the last 19 years. And I said, really? He goes, yeah. So he started to describe what he thought it was. And what I did was I gave him some very specific questions that he'd need to ask the life insurance company to get a better sense of the tool that he had. So all of a sudden I told him to call the insurance company ask them, hey, like, what's the total death benefit? What is the total cash value? Or what's the total loan availability today? Like, how much access to cash do I have? And then I told him to go and call them the next day and ask them how much loan availability he has. And he was surprised to find out that he had over $500,000 worth of permanent whole life insurance on his life because the death benefit wasn't that high when he started it, but the policy had grown. And then he was surprised to find out that he had something like $150,000 or more. I can't remember how much cash it was. It was a huge pot of cash that he actually had no idea was there. He had no idea that he could access this. And we were able to already access a lot of cash out of the policy to solve some immediate problems, to recapture some lines of credit and things like that, things that were taking money out of his pocket and he could inject some money into his business. And he was super excited and happy. He said, vern, he goes, listen, he goes, I've had different investments, I've done different things, I've done this, I've done that, I've worked hard. He goes, this is the only thing that has ever worked. Now, I'm not saying that that's the case. I'm just saying this is his feedback. He said, I can't even believe he had no idea. He just thought he had a life insurance policy and he knew it was actually set up as what's called a 20 pay. So he knew he only had one year left to pay the premium and then he wouldn't have to pay the premium anymore and the policy would stay with him for a lifetime, which is not necessarily ideal for implementing becoming your own banker, because now where is he going to flow money to, right? You have to have a system that can keep holding deposits. But the point is he now has this paid up policy that has a bunch of cash in it and continues to participate and grow. And he had no idea the whole time that under his nose he had this tool that he could have been using, right, to implement this process or to solve problems. He had access to cash and it just did exactly what the guy told him it would have done a long time ago if, if the guy even told him that. I'm not sure he didn't know what he had. Right. So it's very interesting. I was just going to point out this part where becoming your own banker is not a tax qualified idea of that one. It's the income tax law as we know it today has only been around since 1913. Think about that, the income tax. And that's similar to in Canada, the, the, the income tax. This, these policies are older than the Income Tax Act. They're older than the Right, it's, it's fascinating. These are not a creature of the, of the Income Tax Act. But the whole point is go back, reread Nelson's book, read page three over and over and over again because it has a lot of the frequently asked questions answered already. There's probably a really awesome playlist queued up right here underneath me. And make sure you click that link to go to watchibc.com and get access to a 90 minute webinar Canada. And we'll catch you on the other side when you go and book your call and meet up with one of my teammates. All the best.