Dan Allen explains why participating dividend-paying whole life insurance works for infinite banking, a strategy where you become your own banker. The process matters more than the product, but certain features are essential: participation in dividends, whole-life coverage, predictable cash value growth, and uninterrupted compounding. Allen has practiced this since 2014.
I don't want you to get caught up in the product because it's a process that really matters. The process that we teach you.
On how to become your own banker and what is it you're trying to achieve is more critical than the product.
Have you ever wondered why we use participating dividend paying whole life insurance for the process of becoming your own banker? Well, today, hopefully I'm going to be able to tell you some of the attributes that make that product a great fit with the process.
Now the first thing I wanted to cover is I don't want you to get caught up in the product because it's a process that really matters. The process that we teach you on how to become your own banker and what is it you're trying to achieve is more critical than the product. So always remember that. So it's a bit of a risk when I start talking about the product, but there's some attributes of this product that I just wanted you to understand. Hi, my name is Dan Allen and I've been helping people like you with the process of becoming your own banker since 2017. And I personally started practicing it in 2014. So what are some of those attributes that make this product a great fit with the process? Well, first I'm going to go and do a high level look at the name. So it's participating. So it means that you participate in a pool that's managed by the life company and you're in that pool with other policyholders. So, so you participate in that pool and what value does that give you? Well, when the life company is profitable, they pay dividends to the participating members of that pool. Therefore, with this product you will get dividends. And the life companies that we have worked with have never failed to pay a dividend because they've always been profitable. Third, it's for your whole life, not just part of the word, the name, whole life. So it's going to be there right through your life. And in fact, the only way that would change is if you decide to change it. And it's insurance. I think most people know what insurance is. It's just a way to protect yourself against the risk of premature death. And it's a contract, so it's a unilateral contract. So that's a little about the name. What are some of the attributes that I wanted to speak to you about today? Because there's a lot of them when it comes to this. It's just a great fit with the process of becoming your own banker. First one that I wanted to speak about when you put your money in and it will go in in the form of premiums. It's a way of saving, not investing. It is safe and it's predictable. In fact, on any given day, I can go look at my cash values and I can see what they are.
And I can look out a year or two and with high confidence know what my cash values will be. I've been doing this for a few years and I've witnessed that it worked. They do a great job of illustrating and predicting what your cash values are going to be. But the part that I really like is when I go look at a given day, I know that's exactly what my cash value is. Now. The second attribute I wanted to speak about was the uninterrupted growth of your money. That's what you will get with this process. Your money can continue to grow.
Day after day, year after year. And again, like I mentioned earlier, the only one that would change that and the only person's behavior that would change that is yours. You could choose to stop the growth of that by cutting it out and stopping that particular policy or taking your cash value out. You would kill the growth of it. What we teach you is not to do that, leave your money in there so your growth is uninterrupted. And the next thing we would teach you, and it's really why the next attribute is so huge, which is access to your cash value. We would teach you to use policy loans to get access to your cash value and you can do that without any cost. There's not going to be a fee for taking your cash value out via a policy loan. And your money will keep growing because you haven't taken your money out. You just use your money as collateral to take that policy loan so you can access it and you get control. The nice thing about it is you decide when you want to do it. And even when you take your money out via a policy loan, you get all kinds of control. You get to decide when to pay that back, how much to pay back, and just gives you all kinds of control. And another attribute I always like to mention is flexibility. Because not only is it flexibility on things like I just spoke about, like on how quickly you'll pay your policy loan back or how much you're paying back at a time. The other thing is with a properly designed dividend paying whole life insurance policy for the process of becoming your own banker, you're going to have other flexibility. There'll be flexibility in your premium payment. Mind you, it can never go up, but it can go down. And in fact, over a few years you could probably most cases stop paying premiums by 10 years in, sometimes sooner. I would never coach you to do that. But the possibilities there because of how much flexibility is in this process and product. And the last thing that I wanted to mention as an attribute is the lifelong protection and the tax free transfer of wealth. Now that is something that's going to mean something to others more than you, but maybe it's something that's really important for you. Well, if it is, it's a way to do that. It's a way you can transfer your wealth at the end of your life and we're all going to die. That's just a reality, but it's a great way to transfer that wealth to someone else that you care about or something else that you care about in a way that's tax free. So those are just some of the attributes that I wanted to share with you today about the product. But again, we're going to really reinforce the fact that it's not about the product. Yes, this product works better than other products would for the process of banking. And I just explained some of the attributes that make it work so well. But it's always about the process because what you're trying to do is control the banking function as it relates to your needs. And this is just a tool that supports that. It's not the process, it's the tool. So what I'm going to encourage you to do is learn more about this. It is so easy to learn more right off of these great videos that you can follow up here or if you haven't subscribed to our YouTube channel, I'd encourage you to do that. There is a lot of great information about this process that we call becoming your own banker that will help you and change things for you financially. If you adopt this process, it will help you in your financial well being. I know it because I'm living it. I'm just going to encourage you to do that. Take the time to educate yourself. And the other thing, make sure you get someone to coach you and help you along the way. Now make sure that person is a authorized infinite banking practitioner, doesn't have to be with us. I'm just going to encourage you to make sure you find someone who's trained properly get help you with this journey. Again, I hope you found this interesting. As we shared and talked about some of the attributes of the product that we use with this process. And again, don't fixate on the product, think about the process, understand why that will make a difference for you, and you'll be in a good position.
