Jayson Lowe explains why Indexed Universal Life insurance can't work for Infinite Banking. IUL is "term insurance with a slot machine attached" that puts investment risk on the insurer, lacks dividends and co-ownership, and doesn't give you the control and guarantees that participating whole life policies do. The Nelson Nash Institute requires practitioners to use participating whole life specifically.
Why IUL cannot be used due to high performance markets in present era. And he just, he goes on to say that he follows somebody else who promotes IUL for personal banking. So why can't we use IUL for banking?
JASON well, first and foremost, an indexed universal life policy is like having term insurance with a slot machine attached to it. And so we're not describing a function of investment. We're talking about 100% of the risk being with the insurance company and not the policy owner. And we're talking about.
Universal life being a product of Harvard MBA thinking and Wall street. And there's risk and investment associated with it. There's no dividends, no co ownership of the business. And Nelson Nash said it perfectly in his book Becoming youg Own Banker. He said, I've never illustrated a universal life contract, I've never purchased one and I've never sold one, and I would never recommend it for the implementation of becoming your own banker. In fact, the authorized infinite banking practitioners sign an agreement with the Nelson Nash Institute that they will only utilize dividend paying participating whole life insurance contracts to implement this process. Now, Universal Life Index, Universal Life, variable life, whatever that is. Every financial product, it's not about the product being good or bad, it just is. It has its own set of characteristics in terms of liquidity, tax consequences, risk, the guarantees or the absence of guarantees, control or the absence of control. It's just important to understand that that's not the best tool for the job. It's a tool that can be used for something, but it's not the best tool for this job.
