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

Why Premium Financing Is Risky

8 Apr 2025 · 0 min

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Short transcript excerpt from a YouTube video warning about the risks of premium financing and leveraging. The speaker references a historical leveraged failure in the 1980s (’Nelson got caught with his pants down’) and questions using bank loans/premium financing to pay insurance premiums or to pursue high investment returns, emphasizing conservative treatment of such strategies.

Nelson got caught with his pants down in the 80s. He was leveraged. He got caught. Did we not learn anything from that? Why are we leveraging ourselves outside of the policy going to the banks and premium financing? This is not about using a bank to pay premium. This is not about a rate of return and getting, oh, I'm going to invest that money somewhere where I can get a 10, 15, 20% rate of return. That's great if you can do that in a conservative type manner.