Richard CanfieldPodcast Host and IBC Advisor, Ascendant Financial · Authorized Infinite Banking Practitioner | Author of 4 Books

Why Flow Income Through Policy Loans?

30 Sept 2025 · 1 min

Watch on YouTube

1:13

A short conversation (YouTube) about clients using whole life insurance policy loans to 'flow' income through policy loan repayments. Speakers discuss why clients doubt the benefit and reference Nelson’s Becoming Your Own Banker (noting a 92-page treatment and guidance on aligning premiums and income and 'expanding the system'—pages 48–49) as the conceptual foundation for using premiums to create multiple uses of capital.

Chapters

The one thing that has been coming up for quite a few of the clients that I work with is I get the whole life insurance thing. I get the whole paying premium. They're good with paying premium, but now they're starting to try and flow their income through it via policy loans and blown repayments. They're asking me questions about what is the benefit of me flowing my capital through policy loan repayments when it doesn't move the needle forward, it just gives me access to capital again. And so for them, they're just like, I just don't see the benefit in doing that. I really don't know how to answer the question.
Everything that we do kind of stems from this amazing 92 pages of becoming your own banker. Nelson kind of infers that ultimately a person should be at a position where, you know, premiums and income should match. And in fact, he's got, on page 48 and 49, he literally has a chapter called expanding the system to accommodate hall income. Nelson isn't saying that that should happen in the exactly the same way. What he's indicating is, shouldn't you plan or prepare yourself or have big goals around that activity based on the concept that when you put a premium dollar in and it creates this multiple utilization effect over multiple areas of your life, would there be any downside to doing that?