Jayson Lowe explains why banks buy dividend-paying life insurance policies. The cash value grows by a guaranteed amount daily with no market risk, and policyholders share in contractually guaranteed dividends. Banks get tax-advantaged, on-demand capital that functions like a predictable asset without requiring effort.
Take a wild guess who's buying the most dividend-paying life insurance on the planet. Just take a wild guess. The banks. You got it. And so if we mimic what the banks do, we'll do okay, because you'll have ready access to money on demand, on your terms, without triggering tax and without reducing the asset's value. And you completely wipe out market risk because you get contractually guaranteed daily growth of cash value. You have a certainty of lifetime access to money. You become a co-owner of the life insurance company, sharing in the profits generated. That's a new business that requires none of your time, none of your talent, none of your energy. It just requires premium capital. And when dividends are declared, which they're declared once a year, they cannot be repossessed. They're contractually guaranteed to be paid, and they can't lose value ever. That cash value growth on a daily basis cannot go backward regardless of what's going on in the stock market, regardless of what's going on in the midterm elections, regardless of what's going on globally.
