A presentation by Jayson Lowe promoting dividend-paying, participating whole life insurance as a financial tool (not an investment). Lowe runs a thought experiment describing the attributes of a hypothetical perfect asset (safety, liquidity, tax advantages, guaranteed returns, transferability, creditor protection, inflation protection) and argues that participating whole life policies (preferably from mutual companies) satisfy those attributes via contractual guarantees, annual dividends, cash-value accumulation, tax benefits and policy loans that allow controlled access to capital. He emphasizes coaching/education (Nelson Nash Institute) to use the tool properly.
Chapters
I'm going to unpack something here for everybody. The tool. Now, the tool is dividend paying, participating, whole life. The first thing that I need to clarify for everybody is that this tool is not an investment. Never has been, never will be. This tool is a unilateral binding contract. And if we put the best tool for the job in the hands of someone who doesn't know how to use it, not only will they not turn out any good work with the tool, they're likely going to break the darn tool.
Let's go through a really fun thought experiment. Now, Vern, I'm going to need your help on this one. Now, going through this fun thought experiment, I want to invite all of you to participate. Now, if you could invent the perfect asset. So this is something that you can invent from scratch. The only criteria is that the asset can have no drawbacks whatsoever. So I want you to think about the attributes of the perfect investment. Now I'll get your thoughts started on some of the most frequent responses that we've received since conducting this experiment. High rate of return, safe tax advantaged. So those are three of the most frequent responses that we get. So I want all of you just to take a moment and I want you to think about this and then start typing those attributes into the chat window. So let's take a minute or two.
And Liquid anytime access to capital Liquid accessible anytime.
Never goes down. Compound interest, tax advantage 0 risk.
Free.
From capital gains, non taxed, easy to understand.
Okay, let's capture a few more.
High interest, all of the above.
Flexible tax free.
Awesome. Thank you everybody. Keep them coming as you go. But thank you so much for that engagement. That is awesome.
Now let's one more really good one can I pass on to my family?
Interesting. Okay, so let's see if any of these most frequent responses line up with any that we've heard today. High rate of return, consistent rate of return conservative meaning it's safe, liquid, guaranteed tax benefits or tax free no market volatility. It yields income besides capital gain, Creditor protected inflation protected control transferable, easy to manage, no hidden fees or penalties. Reputable and private. Now what I'd like you to do is for your own various assets, think about those assets that you have right now. Stocks, bonds, mutual funds, commodities, digital cryptocurrency, real estate, and so on. Simply identify which of the features from this list that those assets of yours are doing well on and which features they fail to satisfy. Now I have a bit of a surprise for everybody. The list of attributes most accurately describes dividend paying, participating, whole life contracts. Now I want to unpack this a little bit for everybody. I'm going to use one of those corporate lingo phrases. You can hang out with the guys on Wall street and Bay street if you use that word unpack. I'm going to unpack something here for everybody. The tool. Now, the tool is dividend paying, participating, whole life. The first thing that I need to clarify for everybody is that this tool is not an investment, never has been, never will be. This tool is a unilateral, binding contract. And if we put the best tool for the job in the hands of someone who doesn't know how to use it, not only will they not turn out any good work with the tool, they're likely going to break the darn tool. So it's very important that you're working with a coach, somebody who is an authorized infinite banking practitioner with the Nelson Nash Institute, which all of our team members are, and in great standing. And that coach is going to mentor you and help you utilize the tool properly. Now let's unpack it a bit. Participating. What does that mean? It means that you become a part owner of the insurance company and you participate in the profit generated from every line of business that the insurance company operates in. When you're dealing with a mutual life company, there are two different types of life carriers in Canada, mutual and.
Demutualized. Now we prefer mutual because it's a private company, private contract. There are no stockholder interests to serve. There are no stockholders who participate in the divisible profit generated by the insurance company. Whereas if you're dealing with a demutualized life company, the stockholders participate in the profit generated and the participating policyholders only participate in the profit generated through the participating account. And so there are differences and nuances there that are very important to recognize. Now suffice to say that if you only have the option to deal with a demutualized company, you still enjoy all of the benefits of being able to utilize this tool to implement the process. Now, dividend paying means that each year that the life insurance company declares a dividend, it is contractually guaranteed to be paid to the policy owner and it can never be repossessed and it can never lose value. And if you elect to utilize the dividend to purchase fully paid up additions of death benefit which must accumulate their equivalent in cash value, you are triggering no taxable event. But by chunking that dividend right back into the policy, isn't that good? And then whole Life means that you're insured for your whole life all the way to age 100. Now, the carriers in Canada are required contractually, they're legally bound to ensure that the total cash value matches the total death benefit by age 100 of the life insured. So every single day that you're aging closer to 100, the cash values of the policy are contractually guaranteed to rise and they cannot go down. I say that again, they cannot go down. Now, we don't have many financial guarantees in life. I think everybody knows that pensions are going by the wayside and people are doubtful about the future. And this particular tool, a dividend paying, participating whole life policy or a system of policies, helps you to create that peace of mind and has unmatched financial security. Here's how. The cash value begins accumulating in the policy immediately from day one and is contractually guaranteed to grow daily values cannot go down. You've got easy access and control over a growing pool of financial value so, so that you can take advantage of opportunities that will track you down. The late R. Nelson Nash used to say to us often when you have ready access to a pool of value, opportunity will hunt you down. And he couldn't have been any more accurate. You're not penalized for accessing it early like you are inside of a registered retirement savings plan or other financial products that are creature of the tax code. There are several tax advantages here, both personally and corporately. It also provides a growing death benefit which is paid to your named beneficiaries income tax free, or in the case of a corporate owned program, gives rise to the capital dividend account which is then paid out to surviving stockholders on a tax free basis in the form of tax free capital dividends. Now what I want to encourage all of you to do is to be a wealth creator. So you understood the debtor, you understood the saver. I want you to become a wealth creator because this green line represents your pool of financial value, your daily cash value accumulation inside of a policy or a system of policies. And when you need access to capital for all those things that you need to purchase throughout your lifetime, you're accessing policy loans. You're repaying those policy loans on your schedule, not anybody else's on your schedule. And every payment that you're making is a deposit back into your own system. All the while your pool of financial value continues rising uninterrupted by the loans.
Let me hear in the chat window a yes or no. Do you believe that that creates a financial advantage regardless of where you are financially up to this point in your lifetime. Give me a yes or no, Vern. What do we get in there?
Yes, 100%. Lots of yeses, Jason.
Excellent. Now, let's talk about creating your own system. And before we do that, I want to introduce you to what Nelson Nash called his five golden rules. Now, the first golden rule is to think long range. What that means is to think three generations past your own. You're going to need the use of money throughout the rest of your lifetime. Your children are going to need the use of money. Their children are going to need the use of money. So let's get as much of that capital flowing back to the family versus flowing away. Don't be afraid to capitalize your system. Don't be afraid of paying premium. Many of you, when you look at these insurance policies, if you don't have a thorough understanding of the problem and you'll recall me saying the solution just won't matter to you, a question that will come up for you is, when can I stop paying the premium? That is a crystal clear indication to the coach that you're talking to that you don't yet fully understand the problem. Because if you did, your question will become, how long can I pay it for? Because the more capital you put into your system, the more capital you'll get out. It's ridiculously simple. The third golden rule, and one of the most important is don't steal the peas. Remember the grocery store example? Don't do business with banks. And more important to rethink your thinking.
