Examining Whole Life Insurance & The Bank On Yourself Revolution | John Ensley
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- Опубліковано 13 бер 2024
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Great episode.
Still new to this concept.... glad to learn more. Thanks!
Thanks for watching! Obviously biased but Lots of great content on this channel and our other one around this concept as well!
I will check out the book
The Primerica troll in the chat! Thanks for promoting the channel. Helped me to find.
The sad part is, he thinks he knows something that isn’t so. Look how he kept claiming the ins. company keeps the cash value when one dies and tried to claim he didn’t say it. Notice how he thinks a brokerage account loan is the same as the insurance contract loan. Typical Primerica rep. I stopped replying to him to let the conversation speak for itself.
Can we make a video about transparent fees that comes with WL or IUL?
What was your favorite insight from John in this interview?
To always have an entry and exit plan when borrowing against your policy 🙌
Using the policy and paying it back
I appreciate the fact that John utilized his Sailing School to teach Sailing and educate his clients about the benefits and opportunities associated with Banking On Yourself using Whole Life Insurance.
Before you come here to try and convince everyone that you are the smartest guy in the room, try studying the concept and know how whole life insurance really works. Try studying how the contractually guaranteed whole life loans work, how there is no underwriting to borrow from the life insurance companies account and realize a brokerage account loan is inferior. And realize that there is no other vehicle that can do what the whole life insurance contract can.
Oh yeah?
Infinite banking is just a ploy to get you to buy whole life insurance and generate thousands in commissions and fees. The concept is very simple in that YOU create and fund an account that you can borrow money from and pretend that it is your "bank."
There is an alternative secret strategy that allows you to truly take control of every aspect of the banking process. You can control how the capital is invested, how much to take as a "loan" (even up to 100%), how to repay the loans (even never), and how much interest to pay on loans (even 0%). The secret that your parents (much less whole life insurance salesmen) never told you is that instead of paying dearly to the insurance company to create the capital you use (a cash value) you can fund your own savings or investment account and use that as your capital. Here is how and why, if I wanted to, I can practice infinite banking with my own savings account at a high yield online bank:
My bank (Ally) did not need a salesman to sell me my account.
My bank, where I "store" my cash, does not charge any commissions. I "broke even" on day one, not year 7.
My bank does not convert my cash into a "cash value."
My bank account has no MEC limits.
My money in the bank is safe and FDIC insured.
My bank has no fees to sap the effective interest rate - currently 4.35%.
At my bank, if I want some of my money I just request it and they give it to me.
If they send me money from my account, there is no need to pay it back to my account, but I can if I want to - at 0% interest.
At my bank, if I pay myself back at the same rate I would pay back a policy loan, I come out ahead in cash compared to a cash value with "uninterrupted compounding growth." That's because the interest portion goes into my account instead of to the insurance company, and due to compounding growth, which is not a unique feature of cash values.
If I don't pay back a loan to myself, there are no compounding interest charges against my account.
At my bank, if I want to close my account, they give me 100% of my funds with no surrender fee. (About 80% of whole life policy holders end up surrendering their policies before they die.)
At my bank, I earn taxable interest. That is because my account experiences real growth of money I can readily spend, and I am able to pull out more than I put in. (The same could apply to cash value "infinite banks," but you're unlikely to ever pull out more than you put in.)
At my bank, if I want an actual bank loan, I don't have to self fund it first or wait years to build up a sufficient cash value.
At my bank, loans are tax-free. (ALL loans everywhere are tax free!)
At my bank, if I take out a loan, the maximum amount is not tied to some percentage of my savings account.
At my bank, if I get a loan, my savings account continues to earn interest unaffected by the loan. (WOW! Just like with a policy loan.)
At my bank, if I die, the bank does not keep the funds in my account. My designated primary or secondary beneficiaries get ALL of it.
My bank does not provide a death benefit. (OMG!) At my stage in life, I don't want or need one any longer, and they don't make me pay for it either. When I did need life insurance, I had a term policy.
Okay i read a couple of Kim D.H Butler books then watch some videos which lead me back here. So i have to say i was wrong about this page. You're not someone pushing life insurance as a wealth builder and great investment. But you're saying its a safe place to store extra cash. I think its a lot of valuable information on here. I stored extra cash in my brokerage account. But from listening to her and more of your videos whole life sounds like a better option. Universal still sounds like a scam
Where is the magic that makes some people believe that a cash value is better than a simple high yield savings account with which to practice "infinite banking?"
Seems like you need to research more for yourself.
There is several benefits to it being cash value in a WL policy.
@jordanperrault5039
I have researched it. Here are my findings. I'd appreciate it if you could show me yours.
My bank (Ally) did not need a salesman to sell me my account.
My bank, where I "store" my cash, does not charge any commissions. I "broke even" on day one, not year 7.
My bank does not convert my cash into a "cash value."
My bank account has no MEC limits.
My money in the bank is safe and FDIC insured.
My bank has no fees to sap the effective interest rate - currently 4.2%. Average cash value interest is 1.5%.
At my bank, if I want some of my money I just request it and they give it to me.
If they send me money from my account, there is no need to pay it back to my account, but I can if I want to - at 0% interest.
At my bank, if I pay myself back at the same rate I would pay back a policy loan, I come out ahead in cash compared to a cash value with "uninterrupted compounding growth." That's because the interest portion goes into my account instead of to the insurance company, and due to compounding growth, which is not a unique feature of cash values.
If I don't pay back a loan to myself, there are no compounding interest charges against my account.
At my bank, if I want to close my account, they give me 100% of my funds with no surrender fee. (About 80% of whole life policy holders end up surrendering their policies before they die.)
At my bank, I earn taxable interest. That is because my account experiences real growth of money I can readily spend, and I am able to pull out more than I put in. (The same could apply to cash value "infinite banks," but you're unlikely to ever pull out more than you put in.)
At my bank, if I want an actual bank loan, I don't have to self fund it first or wait years to build up a sufficient cash value.
At my bank, loans are tax-free. (ALL loans everywhere are tax free!)
At my bank, if I take out a loan, the maximum amount is not tied to some percentage of my savings account.
At my bank, if I get a loan, my savings account continues to earn interest unaffected by the loan. (WOW! Just like with a policy loan.)
At my bank, if I die, the bank does not keep the funds in my account. My designated primary or secondary beneficiaries get ALL of it.
My bank does not provide a death benefit. (OMG!) At my stage in life, I don't want or need one any longer, and they don't make me pay for it either. When I did need life insurance, I had a term policy.
The magic is that the return on the cash value is based primarily on long term corporate bond returns supplemented by institutional business profits whereas "hysa" return is based on the lowest the bank thinks it can get away with to give you while making a profit elsewhere, primarily on treasury and corporate bonds; and the hysa return can get taxed every year at high ordinary income tax rates (fed, state, local), which can also prevent compounding, whereas the return on cash value compounds while practically tax-free with practical wash loan function.
@linnyh8242
The growth of a hysa may be taxable because it is YOUR money that is growing. Money that you can spend. Growth of a cash value is not taxable because it is NOT your money that is growing. You cannot simply spend it. You can only take a loan against it. Remember, that cash value, and much more, used to be after-tax money in your pocket, but you gave it all to an insurance company. Now, if you want to "access " it, you need to take out a LOAN! That's like buying a house and having to pay rent to live in it. And, if you die, you lose the entire "house." That doesn't happen with a hysa.
@@markf.2050 The "loan" is practically wash loan, practically similar to paying interest to your self, since you continue to get dividends for the borrowed amount, which will more or less wash off the loan interest since both are based on interest rate environment. It's practically a legal fiction, the same way it is a legal fiction that dividend is mere return of overpaid premium. If that is true then cash value would never exceed premium but in practice it can end up being multiple times the premium.
The cash value and death benefit are not two separate pots of money, the cv is part of the death benefit. CV is the portion of your DB that you can access while alive. The "house" is the death benefit, so you are incorrect.
Everything that can be done with whole life can be done with countless of other vehicles at a lower expense. It means the person will have more to invest and it's not a living benefit. It's one that can be passed on. Whole life is a scam
You are correct it can be done with many other vehicles! Would love to hear the ones that you know of and at a lower expense?
@TheAndAsset what are you trying to accomplish with whole life?
If whole life is a scam it means that buying any kind of dwelling to live in is a scam.
@siulanainad lol that don't even make sense. Try again
@@mda0214 for me it’s different than what it may be for someone else…. So are you asking for me specifically or for what it could be used for to accomplish?
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