Dan from Ascended Financial explains three reasons people don't repay Infinite Banking policy loans: using it as an emergency fund, using cash value to pay off outside debt first, or intentionally leaving loans unpaid in retirement to access the built-up value while the death benefit covers what's owed.
You always want to have a plan. Nelson was very clear about that. Always have a plan to pay yourself back because if not, you're really, you know, crippling your system. Your banking system. No bank functions well, if people just take loans out and never pay them back.
Why haven't we paid our policy loans back for infinite banking? Have you ever wondered why somebody wouldn't pay their policy loans back? Doesn't that go against Nelson Nash, who is the author of the concept called becoming your own banker? The infinite banking concept. Wasn't it one of his rules that said never steal the P's? That means don't steal from your system. Pay yourself back. It's a bank after all. And if you're taking a loan from a bank, don't you have to pay that back? So, yeah, that is one announcement. Nash is five golden rules. Don't steal the piece. So today I'm going to speak about why some people haven't paid their policy loans back. Hi, my name is Dan and I'm with Ascended Financial. And it's kind of a really interesting question to ask yourself because it goes against fundamentally what Nelson taught in this whole process. So I'm just going to cover three reasons why someone may not or is not paying back their policy loan for infinite banking. Now, the first one is all about, oh, you're in control. It's your banking system. The one circumstance that I know may make good sense for taking out a policy loan and not paying it back is when it comes to one of the uses that you can have for this process called the infinite banking concept, is that you could use that process for a place to store your emergency funds. Let's just say that's what you do. And I encourage people to use that. That's a great way and place to put your emergency funds. So there could be a case. And again, because you're in control, you get to make this decision where you've gone or in a period of time in life where things are not going well, maybe you've lost your job and you need to access your emergency funds. So that's a great example of a time where, because you're still in it, things are not going well for you and you're struggling. But that's what emergency funds are for, a place that you can go get access to money that will help you through that period of time. So that would be one example. And yes, hopefully when things get back on track for you, you will want to replenish, build back up your emergency fund by paying back those policy loans. So that is one example that would be a good case for not paying it back until you're in a position to do so. Well, the second one I want to speak about is one of the key fundamentals that we help a lot of people with, and that's debt recapture. So using this process, you can start to own your own debt. You'll need to work with your coach to talk about how to do that and what's best to do that with. But one of the things that if you understand the infinite banking concept, you'll understand that it can be and is better for you and your family if you can start to own your own debt versus it's being held at some commercial institution. So what we'll work with people to do is that there's a period of time where they're capitalizing their policies and making premium payments. And as the cash value builds up, they will use that cash value to pay down a loan somewhere else. And this could take a period of time, maybe years, to get that debt back into your own banking system. So that's an example of why we haven't paid our policy loans back for infinite banking. Now, again, you always want to have a plan to pay yourself back because if not, you're really crippling your system. Your banking system, no bank functions well if people just take loans out and never pay them back. But the thing is, as you're recapturing that debt that you held somewhere else in some other commercial facility, you can stop not having to make policy loan repayments until you've got that debt recaptured. And then you'll want to start making payments back to the life company. And what does that do for every dollar you pay back that will enable you to access that same dollar through another policy loan and more. Because your money, money that you've been putting in as premiums, will continue to grow even though you've got policy loans out. So it's a great way to change things for you and your family financially by pulling the debt that makes sense to pull into your own banking system and then paying it off. And as you pay that off, it'll just help you and your family because you'll be able to access that money again. Now, the third one is a little different, and this one is one where, let's say you've been paying your premiums diligently for years and you're getting to that stage of life where, hey, it's passive income time and you'd like to be able to enjoy some of the value that you have built up in your infinite banking system. Well, you could take out a policy loan and you could make the decision that you're never going to pay that back, because you can again, you're in control. Now, that may not be the best way to access your value, but it's very doable. And that would be a case where you could say, no, I made this decision, I know what I'm doing. I know how the interest is going to be compounded once a year, and all those things are true. But you can keep an eye on your numbers, you can look at what you're doing, you can see what that's going to be costing you as far as the interest that's accruing, and you can make that decision and it's a viable option. Again, I would say talk to your coach and at least have a conversation about how else you may be able to access that value, because there is other ways. And again, what happens at the end of the time? We all check out a life, we all pass. And if you've taken out that policy loan and you haven't paid it back, that's when the life company is going to reconcile what you owe because of that policy line loan with the death benefit. Your death benefit is always held as a lien that you put a lien against your death benefit when you take out a loan. So if you still owe $100,000, for example, and you pass, well, they take that $100,000 off what your death benefit was. So it's doable. Those are the three ways that I wanted to discuss with you today. Now, if you don't know how this whole concept works and process works and what kind of control you can get in your life financially, well, I'm going to encourage you to go and take in more of our videos. Those are great ways to educate yourself.
