The Secret Billionaires Use to Grow Their Wealth TAX-FREE! (And How You Can Use It In 2025!)

Leaving an inheritance of money is one thing, especially when it's income tax free. Your cash value inside of this insurance contract is contractually guaranteed to rise daily and it cannot go backward, it can't be repossessed. There are no surrender charges. What the insurance company will do in that circumstance is they will return to you the total cash surrender value of the policy. It's like, where do I sign, man?

Take my money.

Okay, so the question was, which is a great question, what is high cash value life insurance? So what we're referring to primarily is dividend paying, or otherwise known as participating whole life insurance offered by a reputable life insurance company. So this is a contract, an insurance contract that has a death benefit component and immediately begins accumulating a cash value component. Now that cash value is not money, it's the present value of the future payment of the death benefit. But what the policy owner is able to do, especially when you're dealing with individuals, families or business owners, is that you can borrow against that ever increasing accumulation, which is contractually guaranteed to grow, and it becomes enormous, hence the term high cash value life insurance. And the way that we engineer these contracts is for that cash value to begin piling up rapidly right from the onset of the policy. You can borrow against that ever increasing accumulation to control how you finance all the things that you need throughout your lifetime, whether that's vehicles, business equipment, properties, your home, post secondary education, anything that you would have otherwise paid cash for, leased or financed. You can utilize your policy or your system of policies to put yourself in a position of total and absolute control over how you're financing those things. And when you get access to capital to finance those things by way of policy loans from the life insurance company, you're never interrupting the daily growth of your cash value. It can't go backward. Regardless of what's happening in politics, regardless of what's happening with tax law, regardless of what's happening with the real estate cycle or the economy, your cash value inside of this insurance contract is contractually guaranteed to rise daily. And it cannot go backward, it can't be repossessed, it's going to keep going up and up and up until it matches the total death benefit of the policy by age 100 of the life insured. And so if you think of logically, your money must reside somewhere. If you know that you can contribute almost unlimited sums you into a contract like this, that you have ready access, capital on demand, on your terms. You pay no tax on the daily buildup, you pay no tax on the Death benefit proceeds, you are in a position of total and absolute control as it relates to financing the things that you need. Logically ask yourself how much of your capital do you not want residing there? And then from that place you can go and achieve all of your other financial objectives.

Wow, that's, that's quite the summary.

Yeah, well, it's. The good thing is they're going to be able to chop it up. Right. Slice it and dice it.

Yeah, there's so much information in there. So I guess a follow up to that would be. With all that being said, what is the downside of cash value life insurance?

Wow. What is the downside of high cash value life insurance? That's a great question. I would say the primary downside is not participating. So if you recognize the fundamental truth that your money must reside somewhere, and you also recognize the fundamental truth that someone must control the banking function in your life as it relates to your needs, then you need to take a close look at a high cash value life insurance contract or ideally a system of contracts. Because from that place you can control how you finance all the things that you need throughout your lifetime. And there's a death benefit thrown in for good measure. The downside is that if you don't participate, you don't own one or more of these contracts, then someone else and some other organization is benefiting from controlling the financing function as it relates to your needs. And the developer of a process named the infinite banking concept, the process of becoming your own banker, the late R. Nelson Nash, he said that most people, and he's referring to 99% of the population, most people not only abdicate the responsibility of banking as it relates to their needs, but they also abdicate the opportunity that controlling it represents. So understand that no matter what's happening in the economy, no matter what's happening politically, no matter what's happening with the real estate cycle of the stock market, the process of banking goes on no matter what. And the tool that is utilized to control that function as it relates to your needs, which is where the banking function should be held at the you and me level. The tool that's utilized to do that to control that is dividend paying whole life insurance, ideally with a reputable mutual company.

Okay, couldn't agree more. Now, in your experience.

Why do people buy high cash value life insurance?

Why do people buy high cash value life insurance? The primary reasons why are control, liquidity, contractual guarantees, shielding the accumulation of cash value from taxation, having ready access capital on demand, on your terms, without reducing the asset's value and without triggering a taxable event and to take care of terminal tax obligations and living tax obligations. So these contracts also referred to as dividend paying or participating whole life insurance policies, ideally with a reputable mutual company, these contracts put the owner, the policy owner, in a position of total and absolute control. And so when we're working with families or business owners, once they understand all of the financing characteristics of these contracts, they catch it. They catch it very quickly because they also recognize that their need for finance is going to be there with them and it's going to be extensive throughout the entire course of their lifetime or the entire course of operating their business or businesses. And so this particular type of contract.

Gosh, the list goes on. I mean, the primary reasons that I noted are just a handful of many as to why people purchase not one, but purchase a system of these contracts so that they can take control of the banking function as it relates to their needs or their company's needs.

So if we're talking about contracts, can I borrow against my life insurance?

Can you borrow against your life insurance? So if we're addressing a dividend paying or participating whole life insurance policy, also referred to as high cash value life insurance, the answer is a resounding yes. Now, depending upon the carrier that you purchase the policy through, you can begin accessing capital as early as day one, the day that the policy is in force. And you can utilize the life insurance company's capital without interrupting any of the daily cash value growth inside of your own policy. Now, what's interesting and what most people don't know is that the insurance company has a guaranteed loan provision where you can borrow against your ever increasing cash value on demand, on your terms, meaning the loan is unstructured when you request it, you receive proceeds, the money from the life insurance company, and the repayment schedule is controlled by the policy owner, not the life insurance company. And the reason that that is is because the insurance company itself is guaranteeing the collateral for the loan. The lien for the loan balance is on the death benefit of the insurance contract, not what the policy owner used the money to finance or to purchase. So that puts you in a position of total and absolute control. You can borrow against the cash value of your policy if it's structured properly and if it's with the right carrier beginning on day one.

Okay, now, although this is something that we would never recommend, but this question does come up a lot. Yeah, can I cancel my high value life insurance and get my money back?

Can you cancel a high cash value life insurance contract and get your money back? The answer is absolutely. So the one thing about being a policy owner of a high cash value life insurance contract is that you maintain the contractual authority from day one to forfeit or surrender that contract. There are no surrender charges. What the insurance company will do in that circumstance is they will return to you the total cash surrender value of the policy. And that total cash surrender value rises daily from the inception of the policy. And so, rather than contemplate forfeiting or surrendering a policy, it is always best advised to get together with either the advisor who placed the contract for you, or an experienced and proficient advisor who can help you navigate the myriad of options to keep that policy in force. My, my late father had a participating whole life insurance contract and when he retired, there was a sum of cash value that had accumulated inside the policy. And his advisor at that time suggested that he surrender it so he could get the cash value and enjoy or supplement his retirement. I'm going to meet that individual someday. We're going to have words, because I would have never, and I will never, ever recommend that somebody do that. My father could have borrowed against that accumulation on demand, on his terms, to achieve the things financially that he wanted to achieve while still maintaining an ever increasing permanent death benefit. But rather what happened when he died suddenly and unexpectedly. There was no death benefit windfall which would have shown up for us exactly when it was needed the most. There was no cash value, there was no contract because he was ill advised to surrender it. So while you're given the contractual authority to do something like forfeit or surrender, you should always consult with either your advisor, or if you can't reach him or her, get in touch with someone, like someone on our team who knows what they're doing and who can walk you through the options to maintain it, to keep it in force, which is exactly what it should be, is in force.

Well, that's a, that's a great example because it really teaches people that they should, instead of just acting hastily, they should seek professional advice from people that actually have their best interest in mind and aren't just going through the steps of, of, you know, getting the, getting the deal done or whatever, whatever that looks like, but are actually there to look after, you know, their client and put them first above, you know, their own obligations or their own things they're trying to achieve.

Ash, that is such a great point because what we see in the industry.

And it's not uncommon, whether it's Canada or the United States, is that in the life insurance space, it's very transactional. Know advisors are working hard, they're working hard to, to build a practice and, and to see the people and to serve them and help them. And they in some cases end up serving so many people that they're, they're spread too thin and they're just not in a position to provide that dedicated care and service. And it's not a slant on the advisor, the, the advisor, you know, at least anyone I've ever met, they, they lead with the best intentions, they, they want to serve their clients and they want to serve them well. But most advisors that I've connected with, they're simply unfamiliar with all of the options available for the policyholder to maintain the contract. Even if it's in some form other than what was initially put into force. There are always options to maintain either partially or in full. And so that's why it's super important to work with somebody who's not only accessible, but who is also really proficient and can walk you through all those options.

And from my limited experience, what I've seen is the life company also wants you to keep that in force and they're willing to work with you to figure out whatever that takes.

Oh that 100%. And but by the very same token, I mean if you look at the opposite side of it, if the policyholder surrenders that contract, the life insurance company is off the hook. They're off the hook for having to pay that total death benefit which the insurance company knows if it's a dividend paying whole life insurance policy and those dividends are going right back in to purchase fully paid up additions of death benefit, that, that death benefit is going to be ever increasing. And so when a policyholder says look, I just want to forfeit, surrender it, get the cash value out, the insurance company recognizes, hey, this takes us off the hook from having to pay that death benefit. And so again, I can't emphasize it enough. If you're ever contemplating a decision of that nature, don't do it alone. Make sure you're working with a competent professional who can guide you and counsel you so that at least you can make the most informed decision that's best for you.

So what would you say then is the best age to get high value life insurance?

Oh, what is the best age to purchase high cash value life insurance? I would say as early as legally possible. So in, in our business we can insure a newborn as early as 16 days young. Now the newborn can't own the, the insurance contract Obviously, one of the parents is going to be the primary owner of the policy. But when you do that, you're doing something for your child that he or she can't do for themselves. Today, you're giving them a gift that speaks volumes. Volumes. It's, it's never going to end up in a toy graveyard somewhere. It's never going to require batteries, it's never going to end up being too small. It's going to follow your child right through their entire lifetime. And when you're dealing with high cash value life insurance, dividend paying, participating whole life insurance policies, you're beginning to accumulate cash value in these contracts right from day one. You can utilize the policy or the system of policies to take care of everything that, that you as a parent would have had to have otherwise financed for your child, post secondary education, their first car, walking them down the aisle. So the wedding, vacations, the list goes on and on. You can use your policy or system of policies to control how you finance that without ever interrupting that ever increasing accumulation of value inside of those policies. And so I would say as early as possible and as many as possible. So we're not just addressing a single policy. We're talking about developing a system so that you can become the banker as it relates to your needs.

And sticking with age for the next couple of questions because this does come up quite frequently.

Yeah.

Is 55 too old to get high cash value life insurance?

Is 55 too old to get high cash value life insurance? The answer is absolutely not. My goodness. Age 55 today, you're still a spring chicken, for heaven's sakes. And at that age, that may be a prime time for you to evaluate and investigate high cash value life insurance. Why would you want to do that? Well, the insurance companies have developed programs that they've aptly named insured retirement solutions. So at age 55, you're looking toward the horizon to say, what are my retirement years going to look like? What have I accumulated? What am I going to be prepared for in the way of addressing the lifestyle that my spouse and I want to have and the things that we want to do at that stage of our lives. Well, if you can put together high cash value life insurance, ideally a system of policies, you can engineer your retirement income literally, figuratively, quantitatively, you can literally engineer the amount of retirement income that you desire. And in order to, I guess, trust but verify that that's the case, get together, get connected with the right person on my team and ask them to walk you through an insured retirement program. And then contrast that with any of the other assets that are already on your personal balance sheet. And then contrast those assets with the characteristics of high cash value life insurance contracts and ask yourself, which of my existing assets do well in that comparison and which of my existing assets don't do well in that comparison. And I think that your eyes are going to be open to a whole new financial world.

I would, I would definitely agree. Once I didn't even know what IRP was initially and then when I started hearing about it, I was like, wow, so there. It just amazes me how much flexibility and how many different applications there are for these life contracts.

100%. Yeah.

So to close out the age question, is high cash value life insurance worth it after age 80?

Is high cash value life insurance worth it after age 80?

The merit, the need for a high cash value life insurance contract is not age dependent, it's solution oriented. So if you have a problem at age 80 or beyond that a high cash value life insurance contract can solve, then you should absolutely investigate that as a solution to the problem. And although the individual who's age 80 or beyond cannot be the life insured on that contract, the good news is, is that you don't have to be the life insured, you can be the policy owner. So you're in a position of total and absolute control as it relates to access to the cash value, the beneficiary or beneficiaries of the total death benefit, the contingent owner of the insurance policy. You're in a position of total and absolute control, but you don't have to be the life that is insured. But absolutely you want to be looking at this tool.

As a tool to solve a problem. And so regardless of your age, if you have a problem and this tool is the right solution and you absolutely have an opportunity and you should investigate it.

So.

How do you use your high cash value life insurance to build wealth?

How do you use your high cash value life insurance to build wealth? Well, the answer is you don't. So high cash value life insurance is a tool that you use to implement a process to build wealth. Words have meaning. So it's really important to understand that high cash value life insurance is a tool. And that tool has certain features, like ever increasing cash value, which begins accumulating in the policy from day one and doesn't stop accumulating in the policy until it matches the total death benefit of the policy or the life insured dies or the policyholder surrenders the contract.

That increasing cash value can be borrowed against. Although cash value is not money, it can be borrowed against on demand by the policyholder, on the policyholder's terms. You're using the life insurance company's money to go and achieve, whether it's an investment objective, a financing objective, a wealth building objective. So it's really important to understand that this is just a tool that you utilize to get the job done. And so I wouldn't view high cash value life insurance and say, this is how I'm going to build wealth. It's the tool. The how is what you do as it relates to your policy loan activity and where you deploy that capital, how you multiply that capital. The cash value inside of the policy is going to continue rising without any policy loan activity. The key here, the most important takeaway in this snackable content is that the policyholder's behavior is far more important than the behavior of the life insurance company. So can you utilize this tool to accelerate the creation of wealth? You better believe you can. And especially if you're being coached to do that by someone who, who's competent, someone who's done it. And so if that is a desire that you have, then I would implore you to work with somebody who's done what you are endeavoring to achieve. And the best way to do that, and I'm biased of course, is to get connected with the right person on my team because you wouldn't be speaking with any advisor on my team who doesn't practice this process in his or her own life and who can show you firsthand how they're doing this themselves. And that I can tell you from firsthand experience. Seventeen years into my journey, having 77 policies in our family banking system, having ready access to capital on demand, on our terms, we have certainly controlled how we build wealth within our family. And these policies have been the very best tool to get that job done.

I'm glad you mentioned that words matter, because we come across that a lot on how things are being interpreted or how they're being presented. And I think once, you know, once prospects or potential clients realize that it's the end asset, it's not the either or, then they really start to understand and see the benefits of it 100%.

Because, and you raise a good point, when people are making some form of decision as to where their money should reside, they think of it as an either or right? Should I invest in Bitcoin or should I invest in real estate? Should I put money into high cash value life insurance or should I invest in the Stock market. Well, those are all product decisions. Whereas what we're addressing first and foremost is a process that's outlined in this book that was authored by my late mentor, R. Nelson Nash. This book has sold more than 550,000 copies. There's a reason the process works. And so when you understand that regardless of the products that I just mentioned, the process of banking goes on no matter what's happening with any of those products. Bitcoin, the stock market, real estate.

High cash value life insurance. When you recognize the significance of banking in your life and the advantages of controlling that function as it relates to your life, then you will immediately recognize that high cash value life insurance is the best tool to get the job done of controlling the banking function as it relates to your needs. That introduces the end asset. So now it is, I am going to become my own banker and invest in Bitcoin. I'm going to become my own banker and invest in real estate, the stock market. Insert product here. You can't get a higher rate of return doing anything if you ignore who's controlling the banking function as it relates to that thing that you're contemplating investing in or buying. So get your hands on a copy of this book. It's a 92 page read. It'll take you less than an afternoon to get through. But I can promise you, if it has even an ounce of the impact on you as it had on me back in 2008, it's going to open your eyes to a whole new financial world and it's going to equip you to build that bigger financial future for you, your family and your business.

Yeah, sometimes people just need to be reminded of the, you know, two simple words. Banking function 100%.

Yeah, it's, it's ridiculously simple, Ash. Yeah, but nobody's talking about it, you know, and in the marketplace, when, when you're hearing or seeing, you know, messaging around the tool, high cash value life insurance, or you're seeing messaging around the concept, the infinite banking concept, there's a lot of sensationalizing, you know, you can, you can build wealth that it's the, the secrets that the banks don't want you to know. It's the secrets that the wealthy don't want you to know. Arnelson Nash never wanted the message to be conveyed that way, that it was somehow some big secret that people don't want you to know. He wanted the masses to be aware that you don't have to be rich to get into the banking business because that's a common Misconception is that you have to be wealthy to do this. He talks about the all American young man in his book, becoming your own banker who's earning $28,500 a year after taxes. And so whether you're earning minimum wage or you're making multiple six figures a year, you rely on the function of banking as it relates to your needs. And at either end of that spectrum, you can implement this process, you can build a bigger financial future, and you certainly don't have to be wealthy to get underway.

And that's because we do definitely come across that a lot. But once we realize it and we let people know, you start where you're at and we explain that to them, then they really start to see the benefits. So how long does it take for high cash value whole life insurance to build cash value?

How long does it take for high cash value life insurance? So we're addressing dividend paying or participating whole life insurance to begin accumulating cash value. If the policy is engineered properly, meaning the advisor has walked you through and shown you the ideal allocation of premium to the policy, that contract will begin and rapidly begin accumulating cash value from day one. And so working with a competent, proficient advisor who's experienced can easily demonstrate to you what high cash value actually means and how quickly it can begin accumulating. But in our experience and what we do for our clients, we want that cash value to be available, accessible from day one, and we want it to accumulate rapidly.

So can you have more than one high cash value life insurance policy?

Can you have more than one high cash value life insurance policy? The answer is a resounding yes. So it's not a function of the quantity of policies. If we were only dealing with one life insured, then the carrier is going to be agreeable to a maximum amount of death benefit at risk. So if we have a life insured, age 50, male, nonsmoker, applies for a dividend paying participating whole life insurance contract, high cash value life insurance, and the insurance company informs the advisor that they're willing to insure a maximum of $5 million of death benefit at risk. And the initial application would see the policy owner only purchasing a half million in starting death benefit, while that individual could easily pick up additional contracts. So now they have a quantity of policies, and the insurance carrier is still within that net amount at risk that they're agreeable to insuring that life for, because what we're dealing with is a contract, and the insurance company itself is legally bound to fulfill the contractual guarantees the policy owner's sole responsibility is to pay the premium. So the insurance company has to determine how much risk are we willing to to essentially take on, given that it's a permanent policy and the payment of the death benefit is assured, provided that the policy is in force at the time that the life insured dies. And so it's not based upon quantity, more so than it's based on the total death benefit.

Well, high cash value sounds good to me. Do beneficiaries receive cash value?

So high cash value may sound really good to you, and you may be asking yourself, do my beneficiaries receive the cash value?

Here's where the industry has caused some confusion. What's important to understand is that cash value, and I'm addressing a dividend paying, participating whole life insurance policy. I'm not talking about universal life insurance, which is essentially term life insurance with a cash account or an investment account associated with it. I'm talking about dividend paying whole life insurance. The cash value in that contract is not money. It is the net present value of the future payment of a death benefit. I'll say that one more time. It is the net present value of the future payment of a death benefit. And if you understand that the total cash value is contractually guaranteed to match the total death benefit by age 100 of the life insured in Canada and age 121 of the life insured in the United States, and you understand that the death benefit of this insurance contract is going to be ever increasing with no future increase in premium, then you'll understand that the death benefit will always be larger than the total cash value because they don't match until the ages that I just described. So when the life insured dies, we want the beneficiaries to receive the higher number, and the higher number is the total death benefit. And the cash value at the time of death represents the net present value of the future payment of a death benefit. And that death benefit will always be higher. That's why we wrote the book. My podcast co host and I, Richard Canfield, we wrote the book titled Cash Follows the Leader. Cash Follows the Leader. So if you head on over to Amazon, you'll be able to type in Cash follows the Leader. Get your hands on a copy of that book and we'll take a deeper dive into what I've described in this short video.

So, continuing along, high cash value, is it better to have a whole life or a term life insurance?

Well, when there's a conversation about cash value and then a question like Is it better to have participating whole life insurance insurance or term life insurance? Well, the answer is dividend paying participating whole life insurance. Because when you own term life insurance, you don't own it, right? You're, you're just renting the benefit. So term life insurance definitely has a purpose. You're renting it for a specified period of time. So you might purchase a million dollars of death benefit, you might rent it for a period of 10 years, 20 years, or 30 years. But the likelihood, the probability of that term life insurance policy paying out a death benefit is less than 2%. That's why you can purchase term life insurance at such a low cost, because the insurance company understands that the probability of a payout is less than 2%. And as you age closer to your mortality, the cost of that insurance rises to the degree where most often the policy owner cancels the coverage, just forfeits the coverage because it becomes too cost prohibitive. Whereas with dividend paying participating whole life insurance, it's permanent. You are insured for your whole life. So the insurance company is fully aware that the payment of the death benefit is assured, provided that the policy is in force at the time that the life insured passes away. And so it's important to understand the distinction between owning something and accumulating equity on a daily basis compared to renting something where you pay to rent but you never own anything.

And cost always comes up when people are discussing or talking about any form of insurance whatsoever. So in your experience, what would you say is a good amount to pay for high cash value whole life insurance?

So in my experience, what would I suggest is a good amount to pay for high cash value life insurance? Well, there's two elements to my response to that question. So the first element is making sure that the death benefit of the insurance policy has merit. And so whatever amount of death benefit is required is the amount that you should be purchasing. That's the amount that you should own. The second element is what do you plan to utilize that policy for? So what specific objectives do you have while you're still alive? Because with this type of insurance contract, you don't have to die to win. You can utilize this contract while you're alive to control how you finance all the things that you need while you're alive. And these policies that accumulate rapid high cash value can be borrowed against for all those things that you need throughout your lifetime. So the amount that you should pay is the amount necessary to take control of financing all the things that you need throughout the course of your lifetime understanding that it's a process, it's not an event, meaning you're not going to buy one policy and achieve what I just described through the device of a single policy. That's an event, a process means that you're going to take control of what I described gradually and incrementally throughout the course of your lifetime. And odds are you're going to live a long life and you're definitely going to need the use of money, and someone's going to control how you finance those things that you need throughout your life. It can, and it should be you.

So if I'm able to use and leverage.

My whole life insurance while I'm alive.

Does does my money grow inside high, high cash value whole life insurance?

So one of the things that comes up often in conversation is, so, you know, if I'm able to borrow against the cash value in my policy to go and finance the things that I need or to, you know, invest or build wealth, is the money inside my policy going to continue growing? Here's what's so important to understand. Cash value is not money. So you don't have money inside of the policy growing. You have equity. And that equity can be converted into cash. It can be borrowed against without interrupting any of its ongoing accumulation. So I'll give you an example. If I have 100,000 of cash value in a policy and a million dollar total death benefit, that cash value isn't money. But the insurance company permits me to borrow against.

90,000 of equity in the policy. So 90% of that 100,000 I can borrow from the life insurance company on demand, on my terms. I control the repayment schedule. But the cash value the day I requested the loan was 100,000. The day after I requested the loan, it's going to be higher than 100,000. The reason is simple. The cash value of the policy is contractually guaranteed to match the total death benefit of the policy by age 100 of the life insured in Canada and age 121 of the life insured in the United States. So every single day, let's presume in this example that I'm the life insured and I'm the policy owner. Every single day that I'm aging closer to 100 or 121, the total cash value of my policy is rising because it's contractually guaranteed to do that. When I exercise a policy loan and I borrow against that cash value growth, I'm not interrupting the contractual guarantee that it must continue growing uninterrupted. So where does that leave me? That leaves me in a position of total and absolute control. Because whatever I used the life insurance company's money for, when real money.

The insurance company is not placing a lien on that for the loan balance, they're placing a lien on the death benefit. So if I took out 90,000 in policy loan proceeds, the insurance company is going to place a lien for 90,000 on the million doll death benefit of the insurance policy. And the loan is not reported to TransUnion, it's not reported to Equifax, it doesn't impact my borrowing capacity from other financial institutions. It's a private loan between me, the policy owner and the life insurance company which I happen to co own. Meaning when you own a dividend paying, participating, whole life insurance contract, the word participating has meaning, it means that you co own that life insurance company. So I co own the lender, that leaves me in a position of total and absolute control. And when you borrow and you pay back principal and interest, that interest is profit. And so the more policy owners that are doing that, the more we're all collectively contributing to the net earnings of the life insurance company. Because they're not going to let money sit still, they're going to put it to work for my benefit, for your benefit. And we get to participate, hence the term dividend paying, we get to participate in the ongoing divisible surplus, the profitability of that business by way of dividends, which if you handle them, property, you're not triggering any taxable event. And so when I remind myself of the fundamental truth that my money must reside somewhere, what better place to have it reside than here? And then from this place I can go and request policy loans and invest capital, purchase business equipment, purchase vehicles for my family, take my family on holiday, send my kids to post secondary education, anything that I would have otherwise paid cash for, leased or financed, I'm just using the life insurance company's money to do it without ever interrupting the accumulation of my own cash value and by proxy the ever increasing value of that asset. And I'm not triggering any taxable event in the process. It's brilliant.

So with all the things you just mentioned that you can use your asset for, can you use the high cash value life insurance to pay off debt?

A great question that comes up often. Can you use high cash value life insurance to pay off debt? The answer is yes. And the second part of that answer is you should absolutely be doing that. So if you're in a position where you're carrying some form of debt, let's presume maybe it's credit card debt and your interest rate is in the high double digits, maybe it's somewhere between 18% and 25%. You've got a balance on that credit card. Make sure you're sitting down when you look at that statement you're getting every month, where it informs you of how long it's going to take you in centuries to pay off that debt. Whereas when you begin accumulating cash value inside of a participating whole life insurance policy and you can borrow against that accumulation without interrupting it, on demand, on your terms, and you can borrow against it at simple interest and you control the repayment schedule and you take the life insurance company's proceeds and you go and pay off or pay down that credit card balance, you have immediately increased your net worth and your cost of debt, your cost of capital plummets. And so not only does it help alleviate some stress, it certainly saves you money and interest, significant amount of money in interest, but it shifts the control from that creditor to you as the policy owner. And so ask yourself a fundamental question. How would you feel being in a position of total and absolute control while accelerating the repayment of your debt without interrupting your assets value and without triggering a taxable event?

Well, that sounds good to me.

It's like, where do I sign, man?

Take my money.

Is so is high cash value life insurance a good way to leave an inheritance?

Is high cash value life insurance a good way to leave an inheritance? I would actually suggest that it's a great way to leave an inheritance because leaving an inheritance of money is one thing, especially when it's income tax free. But leaving an inheritance of values, an inheritance of knowledge of what to do with that money, an inheritance of stewardship on how to keep that money exactly where it belongs, which is in the family and not on the books of someone else's bank. This tool, high cash value life insurance, is just that, it's a tool. And if you put that tool in the hands of someone who's never been taught how to use it, not only are they not going to turn out any good work with that tool, they're going to break the darn tool. And so having high cash value life insurance is one thing, having a great coach, a competent practitioner who can counsel you and help you to best utilize it and also help you to best transfer the knowledge and the stewardship and the values to your family, who's going to be left behind with a significant windfall of tax free money. My goodness, this is the very best tool to get that job done, bar none.

So, speaking of inheritance, and you mentioned some ages before when you were discussing insurance, what happens if you outlive your high cash value life insurance policy?

Another common question is what happens if you outlive your high cash value life insurance policy? So in Canada, a policy is fully performed at age 100, and in the United States, it's fully performed at age 121. So if you're celebrating your 101st birthday or your 121st birthday, the insurance company is going to pay to you the death benefit proceeds of the insurance contract. Now, given that you're still alive, those proceeds are taxable. There is a taxable gain as a result. And so would it be important to make sure that as you achieve that age, kudos to you if you get to that age, that's incredible that you should be and should have been enjoying your life by borrowing against that accumulation and making sure that you've created everlasting wonderful memories with your family, with your seceding generations. But understand that once that contract is fully performed, you're going to get a check and it's going to be in the form of the total death benefit of that insurance contract. And it's going to be a very high multiple of what you ever paid in premium. You can never pay in what the insurance company is going to pay out. It is contractually impossible for you to ever pay in what the insurance company is going to pay out. And so happy birthday.

I'm not holding my breath to get to that age. But you know, somebody will get something at some point.

So to summarize everything we've discussed thus far, I guess I'll leave off with this last question. Is high cash value life insurance worth it?

Is high cash value life insurance worth it? The answer is yes, of course it's worth it. If you examine the cost of not changing, of not doing anything different, then you shouldn't expect any different outcome. Whereas if, if you understand all of the financing characteristics of this contract and you understand that there's a permanent death benefit thrown in for good measure, and you understand how this contract can gradually and incrementally put you in a position of total and absolute control.

The answer to that question will be resoundingly obvious to you as well. So, yes, it is absolutely worth it. You know, we have to honor our duty of care in the delivery of death benefit to grieving families. And when I'm speaking to you in this video, you're going to die someday. I don't know when that day is. Neither do you. But it will come. And our late mentor, one of our late mentors, Bob Shiels, he would often say, I wish people could die once, just for a week to see the financial problems that they leave behind. And people are already burdened with the financial problems that they're dealing with while they're alive, let alone leaving a significant burden to loved ones they're not alive. High cash value life insurance addresses both sides of the equation, all the living advantages and the permanent death benefit. And so is it worth it? You bet your bottom dollar it is.

Excellent.

Cool.

Other than my hair being out of place lately, I mean, that's.

That was fun, huh?

It was a good, good first session.

This was. This is good. And now the key is. And like I shared with Neil and I've shared with any teammate that's done this with me, I. There's a reason you're here. There's a reason you're here. Not just to, to, you know, interview and ask questions. It just, it is so vital that you study this and you begin to assimilate whatever works for you. So I, I never ask any of my teammates to become version B of Jason. You've got to be you, but take what works for you and make sure that you're incorporating it into your dialogue and conversation that you're having. You're going to stub your toe, Ash. Like, you're going to say something where you're like, oh, gosh, that's not the way Jason would have said it. Or maybe I didn't fully, fully articulate that. It's completely okay when you're dealing with a prospect or, or eventually dealing with clients to say, you know what, do you mind if I just express that again? I just want to make sure I was clear. So whenever you catch yourself where you might not be completing a thought or you didn't quite get something across the way that you wanted to, but the key, Ash, is that you've got to study. There's no escaping it. And if I would have been blessed with this, this opportunity to be able to interview someone who's been doing this far longer than I was at that time, obviously early in my journey, I would have jumped all over that without hesitation. And I would study it and study it and study it again. So I would go back, I would watch this video, start to assimilate what I'm saying. Use it in the conversations that you're having as early as possible. Otherwise, everything we talked about today is just going to escape you. You might remember snippets of it, but you got to put this to work. I'm doing this for your benefit so that when you're ready to hand the baton over to another teammate who's going to keep interviewing me, I'm going to share this very same coaching advice with him or her. So be sure to study. You can't escape that. And the more you do it, the more proficient you're going to get at it. But.

Don'T kick yourself when you stub your toe like you're gonna do that. I remember in my early days, I would say something, I go, oh, my God, why did I say that? And. But I was. I would immediately correct myself, hey, do you mind if I go back and just clarify that? I just want to make sure it's a complete thought. The prospector client says, yeah, of course, please do you know, when I mentioned that, you know, I didn't fully complete that thought, and then, boom. That person's gonna respect you more than I can articulate. So do the work, study it, assimilate. Make it do what you want it to do, but get it into your rhythm as fast as possible so it becomes part of your method of communicating with people about this process. We're practicing banking, and I think it just gets to be a point where when I think about a loan, when I borrow money for a vehicle, I was going to have to. To pay that debt somehow. Anyhow. I haven't changed. I was still going to save money or pay money for that vehicle. When our children are old enough to own the contracts, these insurance contracts that we purchased on their lives, our family attorney is already preempted.