Select Page

     Infinite banking.  What is it and who is it for?  And how can you be a part of being in this personal banking business?  Financial expert, Dr. Jason Henderson, explains this and more, including why UL contracts don’t give you as much control as infinite banking does.

     When comparing it to the whole life insurance, the risks are transferred back to the individual, when it’s called a UL contract.  The whole life contract is mainly on the company.  And so, you’re running around all the time, making sure that you don’t do something that will cancel your policy.  You’re not completely in control of your money.  You may choose to invest in this fund or invest inside of a UL contract.  When it’s in the whole life contract, you have 100 percent control of what your money is invested in.

     According to Jason, people become lazy with their finances, and don’t read the contracts.  The contract is unilateral, meaning you are in total control of everything.  The insurance company is unable to do anything with the money that you place with them, unless you give them permission.

     Jason explains how you can be a part of the personal banking business, and do things such as buy apartments, inside these policies.  First, people need to understand the business of banking, and the three players within the financial world, which include savers, bankers, and borrowers.  Most people deposit their money in the bank, thinking it’s safe, and that they’re going to get it back in the future.  Or they walk into a bank, needing a loan for a car or a house.  However, they’ve never sat in the banker’s seat, and realized that the saver is actually a liability, and the borrower is an asset.  When you begin this new way of thinking, that’s when you’ll want to be in the personal banking business and turn your liabilities into assets.

     So, how do you get in the personal banking business?  When you have the properly designed whole life insurance policy from a mutual company, where you’re in total control of, and you’re a part owner of the insurance company.  You now have the ability to control all three positions: the saver, the banker, and the borrower.  And so, you deposit some money to your account.  You now have the option to borrow that money at the best interest rate that you can, from the insurance company, to then go invest in something else.

     Jason says the worst thing that could happens your policy collapses.  As you get into the banking business, you’re going to have more cash value than what you contributed.  And, in the event the policy collapses, you have a taxable event.  All that money will be reported as regular income, not capital gains.  You could be into this 30 years and have it lapse.  A lot of regular income in that one year would be a real downer.  You’d end up giving a significant amount of money to Uncle Sam.  Jason says he has yet to see a UL policy that isn’t illustrated to collapse when people start to turn 65, 70 years old or older.

     You want as much life insurance as you can possibly get.  Most people think they only need the bare minimum.  Jason wants people to start thinking about what they want to happen in their financial future.  He says the key to that is going to be becoming your own banker, using your whole life insurance policy.

     Jason states that the pros of infinite banking are, “too many to talk about.”  He wants people to ask themselves how they can use a banking business to benefit their life.  To think of all the interest, they have paid throughout their life, whether it’s from purchasing a car, a home, or something else.  Where is that money now?  In the event there was the possibility of them to have been paying that interest to their own personal bank, where would they be now, financially? There would be a world of difference.

     Having your own personal bank means you should be disciplined, make sure you’re staying engaged, managing monthly, and watching what your money is doing.  What you shouldn’t do is take a loan against your policy, and then not pay it back.  That’s the equivalent of stealing from yourself.  Even though you’re really tight on money that month, the payment to your future self should be the very first one.

     There are roughly 2,000 plus life insurance companies.  And when you narrow it down to the four criteria of the type of business you want to use.  The first one you want is a mutual company, meaning you become the policy owner and part owner of the company.  That narrows it down to roughly 30 companies.  The second thing is you want them to pay a dividend every year.  Number three, there needs to be a special sauce called paid-up additions.  And number four, you want a company that will support you in your journey to be your own banker.

     When speaking of contracts, Jason advises people to get rid of term insurance, because it’s not life insurance, it’s death insurance.  Term insurance only pays out when someone dies.  There are several other contracts that, from single premium life insurance to whole life insurance, to a whole series of universal life insurance, whether it’s VOL, IUL, EIUL, all of these have cash value.  ULs do not have that distinction.

     With whole life policy insurance, you are in a higher position.  You need to have the right contract.  You want a contract that’s built to last.  In other words, a contract built in such a way that the company takes most of the risk.

     That’s what happens with ULs.  All the risk is transferred back to the individual.  A UL is built on a chassis that’s analogous to one-year renewable interment insurance.  What happens is, each year the cost of that insurance goes up.  Once someone hits the age of 55, 60, and older, the premiums they’re contributing is less than one-year renewable term insurance, and it begins to cannibalize itself.  Meaning that the cash value depreciates year after year, even though you’re continuing to deposit money.  So, the policy either goes away, or you need to pay six times what you’ve been paying all along.

     The foundation contract has been around for almost 200 years.  And the ability to use that as a banking system, has always been in the contract.  And, for many, many years, whole life insurance was a savings vehicle.  And everybody knew that the cash value was valuable, and it could be accessed.

     You want as much life insurance as you can get, so you can accumulate money there, and have massive amounts of wealth off the IRS’s radar.  Because the contract has been around for a couple hundred years, that means it was around before the IRS tax code existed.  The IRS and government don’t get involved in private contracts.

     Jason stresses that private banking is the foundation to your financial well-being.  It doesn’t matter if you’re way in debt or ultra-wealthy, you can deposit anywhere between $160 a month to $36,000 a month.  This is for everyone.

     And those that are really staunched about their rights, and the blessing and the advantages of the United States and are against some of the things that the FED has done with multiplying money.  This is the answer.  This is really sound money.

     For more information about infinite banking visit