Jayson Lowe explains why "all your money grows inside your policy" is wrong. When you pay premiums, you transfer ownership to the insurer, like putting property in a trust. If every dollar really grew uninterrupted, insurers would have no profit.
There is a lot of sensationalism regarding the process. And the sensationalism involves people describing things that they may be very well-intended in what they're saying, and they wanna be helpful, but what they're saying is not actually accurate. So when you hear expressions like, all of your money is growing inside your policies while you use the life insurance company's money to go and finance all the things that you need, that's not accurate. When you pay premium to the life insurance company, you're the grantor. Think of when you put property in a trust, you don't own that property anymore. It's the property of the trust. It's not yours. And so when people say, if you've ever wondered, because somebody said to you, all of your money is growing inside of your policies every day uninterrupted. Well, if that was true, then how does the life insurance company make any money? And that's what triggers the confusion, because that would be a very logical question to ask. It's like, okay, wait a second, help me understand this. If all of my money and every other participating policyholder's money is growing inside of their policies every single day, then how is the life insurance company making any money? Nelson Nash often said, people can take a tiny bit of information and reach an absurd conclusion. And there's no better example of this than one's misunderstanding of dividend-paying whole life insurance. Want to find out more about how you can become your own banker? Click the link below or head over to learnwithjay.com. That's learnwithjay.com.
