What To Be Aware Of with Policy Designs in Canada!

I'm coming from having made many, many mistakes structuring my own policy system, structuring my own bank. Why?

It is not a cookie cutter. It's not, you know, made one, one made for all. And it has to be done properly. Your advisor has to know, get, get proper education, proper knowledge about the products, about, you know, all the caveats, all the things with the different companies, different product designs and do the right thing foreign.

It's so important for you to realize that you can't just practice the process of becoming your own banker with any old whole life policy. It's important to make sure that you're working with somebody who's a coach, they know how to structure the policies correctly and you're, and you're actually implementing the process with the proper company. So stick around to the end of the video and my colleague Roman and I are going to dive deep into this. What are some of the common things that you've run into? We've both ran into this where someone says, hey, you know, I was working with a life insurance advisor. I've got this whole life policy. They're gone now, they're out of the picture. I need some coaching. Help me implement the process of becoming your own banker. What are the some of the stories that you've heard that you find out, hey, this is a whole life policy, but it might not be most optimal for the process of becoming your own banker.

One of the stories that I heard recently that someone said, I'm working with an infinite banking practitioner. And then a couple weeks later he said, you know what, I already have a policy in place, but.

I don't have access to cash. I have to wait for so long time. I'm like, really? You said you worked with infinite Banking practitioner. Was it just an insurance broker or was it an authorized infinite Banking practitioner? And it turned out to be that that practitioner did not do a proper design. So there's a lot of noise in the marketplace, you know, where insurance brokers, insurance advisors, they think they, they're doing the right thing. But in fact they, they don't really understand what they're doing. They don't really understand how to do it properly. That's why Nelson Nash, you know, established this Nelson Nash Institute in order to, you know, educate financial professionals how to do it right, how to do it properly. Because once it's done, it cannot be redone, it cannot be fixed. It can be either, you know, you have to either continue with this product that you have in force or you have to surrender it right we have to kind of educate our audience, our clients, that you have to make sure you're working with the right advisor first. And the right advisor means this advisor has to know his thing. He has to practice it himself in his own life, and he has to be an authorized infinite Banking practitioner by Nelson Nash Institute.

I've been guilty of it, I'm sure we all have been. But we get a little bit of information and we make absurd conclusions. So God bless the rest of the advisory field. I'm not knocking anybody specifically here, but life insurance advisors are guilty of hearing. Oh, becoming your own banker, use a whole life policy. Oh, no problem. I've got this figured out. They immediately assume that they understand what we're actually doing and they haven't walked down the path. Exactly what you said. I'm coming from having made many, many mistakes structuring my own policy system, structuring my own bank. Why? Because just like you listening to this video today, even though I had a life insurance license when I first started this and I got a hold of this book and I hadn't actually become an authorized practitioner yet, I'm grateful to say that I didn't set up any policies for clients, but I started to implement the process and set up my own policies. And guess what? There's nothing wrong with those policies. They're fine. But they're certainly not structured most optimally for the process of becoming your own banker. I did the same thing that people out in the world do as I was chasing product rather than following a process. And it's really important to follow the process of becoming your own banker with the right tool for the job. Just because I have a whole life policy. Well, what happens if that whole life policy isn't structured correctly? What if it's structured in a way that there's more focus on death benefit and the cash value isn't going to accumulate for five, 10 or 15 years down the road. Well, that means that I'm stuck depositing premium and that's okay because it's all working for an overall positive result. But if I'm paying premium for five or 10 years before I can access cash, that's not really going to be that comfortable when we're looking to implement the process and be able to access cash right away. To Roman's point, I actually have a policy that when I set it up, I was not aware. There's nothing wrong with this, but I was not aware that I wasn't actually going to be able to access policy loans in the first year I had to wait 13 months before I could access a policy loan. Well, it's not the worst news ever. That's probably the best worst news you're going to get. But a lot of times people are placing those policies and they're not aware of that and all of a sudden they go, oh, right. And the advisor probably just selling the product and going, oh, I didn't know that either. Right. So it's really important, the company, that you use the type of policy, not just the type of policy, but how that policy is actually structured from a premium perspective. There's a lot of different ways to structure premium as well. Right, Roman?

Right, of course. And you know, I have to say that first of all, your advisor, your coach, has to understand your object because the proper policy design has to match your objective. For example, if your objective is specifically only passive income, right? This is one policy design. If your objective is to access cash early, this is totally different policy design. Your advisor must understand this objective in order to do a proper policy design because it is not a cookie cutter. It's not made one, made for all, and it has to be done properly. Your advisor has to get proper education, proper knowledge about the products, about all the caveats, all the things with the different companies, different product designs, and do the right thing. Because once it's done, it cannot be undone. We only have one opportunity to do things right.

There are ways to do infinite banking, becoming your own banker process in Canada. But the way that Roman does infinite banking, the way that he operates his system or how he structured his policy, you're exactly right. They're structured most optimally for your specific objectives, where I may have some other specific objectives. Am I using the policy for investing in cryptocurrency or the stock market or for real estate investing? Am I using it to recapture debt? So building up my policy and using the loans to pay off debt and then send those payments back to my system or you. You made a good point. Passive income time. If somebody says, you know, I want this, a whole life policy is what we might use to build a passive income strategy for a client. But they might not actually want to implement the process of becoming your own banker. They might just want it specifically for income down the road, well, that's going to be a completely different policy structure. So the specific design that I have is specific to my goals and my objectives and how I'm setting up things for my family. And the way that you do it, even though I have the experience, I may be able to coach you But I'm going to coach you on your specific objectives. So your policy design might actually be a bit different than the way that I've designed my policy. It could be even an income situation. Are you a T4 income earner where you have very regular and consistent income and you have a lot of savings built up or are you a self employed person who is reinvesting a lot of money back into your business and your income is maybe fluctuates a lot more that could impact how we structure your premium or what is required versus what's optional premium. So there's so many different ways to structure the system to actually help you achieve the objective of implementing the process of becoming your own banker. But again, the way that you implement becoming your own banker could be different than the way that somebody else is implementing becoming your own banker. Because two different families, two different objectives.

One family, you know, there may be need for passive income policies specifically for passive income. And then another policy may be specifically designed, for example for one spouse and then for another spouse you can have two policies, but they will be completely different. It will be completely different based on, you know, who is the insured, who is in the family, what is the objective for the family? Is this a corporately owned, is this privately personally owned? And it can be combination of policies with different designs. So your coach must understand the whole picture, all the moving parts, because everything matters, everything is important to in order to properly structure your system of policies. Not just one policy, but your banking system.

Yeah, you're absolutely right, Roman. I've actually sat down with people where they say, hey Vernon, look, I've got this whole life policy, I want to do banking. And then I have to be the bearer of bad news and let them know that you might be able to use this policy but you're not going to be using it for the next seven years. Or I've had situations where clients have showed up and I've sat down with them. This actually happened this week. Sat down, we started to have a conversation. I find out that they actually do have really good policies that are set up correctly. But the person that they were working with, I'm not sure if they were a coach or just a life insurance person, but they swore up and down to these clients, oh yeah, I'm a coach, I know how to implement the process becoming your own banker. But yet these clients have been putting money into their policies for almost two years. There's cash value built up and they're saying to me, they're going, vern, I want to use my system, but he keeps telling me not to touch the policy because I'm saving for a down payment for a home. Well, yeah, you can save. That's the beauty of the process of becoming your own banker. It's an and process. I can save for two or three years down the road for the down payment for my home, but in the interim, I can be accessing policy values to achieve other objectives that I would have otherwise used my own cash for and then I can replace that money without interrupting the growth in the system. Why would I just let the money sit there? It's not doing anything for me. Right. And then now they're.

It is not in prison.

Yeah. They just keep feeling like money's going away because they're depositing premium for their policies and they're still using all their own cash to service all their debt and whatnot. And I thought these are the kinds of things that happen when we're just not working with somebody who I literally. Roman, I'm sure you've done the same. Almost every single person that I sit with, provided there's a good fit and there's some trust there, I will actually open up and show them my own policy system exactly what I'm doing. I show them exactly how I've been able to accomplish objectives. If someone's not doing that for you, run away. They've got something to hide. There's probably a reason for it.

You can use, for example, a screwdriver to dig a hole, can you not? Of course you can, but it may take you weeks.

To dig this trench or a hole. Your objective will be achieved, but the time will not be reasonable for you. So, you know, it is very important to understand which product to use and how to implement the skills, the tools, how to use this tool properly.

People say, okay, well, that's all well and good, Vern and Roman, what do I do? How do I get started? How do I find out? The first thing is make sure you click the link in the post description below. Go to watchibc.com that's watchibc.com and you'll be instantly get access to a 90 minute webinar that will start to educate you on how the process of becoming your own banker actually works. And the other thing is, is get in touch. Don't, don't be afraid to ask questions, leave a comment below or get in touch with our team and we'd be more than happy to help guide you in the right direction to get you properly educated before you get A policy place. It's so important to make sure that you have the right type of policy and have it structured correctly because, you know, people will hear things out there in the world and they hear whole life policy saving money. Gosh, whole life places, Whole life policies are a crappy place to save money. Well, why do they think that? Well, they might think that because maybe they had a policy or maybe they have a policy and they look at their cash values and go, I've had this thing for 10 years and there's barely any cash in there. I put way more premium in than any kind of cash. Well, you were just mentioning to me earlier, well, what was it structured for? Was it structured purely to solve a long term, like an estate problem, a death benefit, 30 years down the road, 40 years down the road? Was it designed to create a passive income strategy? Passive income policies, generally, Roman, the way that we set those up, they have very little cash accumulation early on, that first 10 or 15 years of the policy, but they shoot up way down the road. So people would look at and see the word whole life and really steer themselves down a bad path and say, ah, this is all nonsense in this book. And then all of a sudden they miss an opportunity to do something.

We just encourage you to do your due diligence, do your research, read this book, Nelson Nash's book, Becoming youg Own Banker, in order to understand how this concept works, and if this is a fit for you for your objectives in life, and.

Find a good coach, find an advisor. You don't have to work with us necessarily, but you have to do it with a knowledgeable coach. Don't do it alone.

What happens is if I sit down with, let's say, a life insurance advisor or an investment advisor or financial planner, and I might say, hey, you know, I'm thinking about implementing the process of becoming your own bank, or the infinite banking concept. And they go, wait a minute, is that that whole life thing? And then their eyes and their mind focuses on the product and they go, no, you know what, let me put you in some stocks and some mutual funds and we'll do this because your rates of return are going to be better. Well, what is the purpose of the process of becoming your own banker? It's all about how we go about financing the things that we need throughout our lifetime, which certainly can include investments. How do you buy a mutual fund, Roman? Don't you need cash to do that?

Yeah, you have to have some cash. You have to save up some money in order to invest, right?

Yeah, for me to get the cash from where it is today in order to purchase the asset, whatever the asset is. But in this case, let's call it a mutual fund. If you call that an asset, wink, wink, anyway, but I now move the money and I acquire the mutual fund. Well, my money's gone. My money was used to purchase the mutual fund. And now if the mutual fund grows, that's all well and good, but my money is actually gone. My cash is not growing. That's a financing function. That is a function of banking. The process of becoming a real banker is an and process. I can go ahead and capitalize a policy, and then I can use the values from the policy via, you know, borrowing from my own system, and then I can use that to go and purchase the exact same asset. Then I have cash value growing in my policy system, and my investment's also growing. So it's all about. It's not, oh, buy a mutual fund versus buy whole Life. It's let's implement the process of becoming your own banker using the proper tool, the Whole life policy, and then go about achieving all the other objectives that we want to achieve financially, including investment objectives. We know that this video gave you a ton of value. Make sure you check out the playlist beside us and watch IBC.com okay?