Becoming Your Own Banker

Becoming your own banker refers to the concept of using a specially designed whole life insurance policy as a financial tool to create your own personal banking system. It involves utilizing the policy’s cash value to finance purchases and investments instead of relying on traditional banks or lenders.

To become your own banker, you must set up a whole life insurance policy with a participating mutual insurance company. Over time, you build cash value which you can access through policy loans. These policy loans can be used for any purpose whatsoever, including investment, business acquisition or expansion, personal financing of major expenses, real estate investment, or for retirement purposes.

Some advantages include:

• Control: You have control over your own banking system, eliminating the need to rely on traditional banks.
• Tax advantages: Policy loans are typically tax-free, allowing you to access cash without triggering taxable events.
• Growth potential: The cash value within the policy continually grows over time, providing you with a stable financial foundation.
• Asset protection: In many jurisdictions, life insurance policies enjoy legal protection from creditors, offering an added layer of asset protection.

While becoming your own banker has its benefits, it is essential to consider potential risks, including:

• Insurance costs: Whole life insurance policies as with all insurance purchased has a cost for the insurance. Initially, there is a portion of your premium that is not available for use in the cash value. However, over time, the premiums become super-efficient as a dollar in premium provides over a dollar in cash value returned.  This is a super charging factor in Private Banking Strategies®.
• Loan interest: You will be charged interest when you borrow against the policy’s cash value. If you don’t pay the interest on the policy loan, it will create a drag against the cash value. This is easily solved by making sure you pay the loans as would be the case in any traditional loan.

To get started, you should:

• Please educate yourself about the concept of becoming your own banker and understand how it fits into your financial goals. Begin by reading or listening to our free E-book and then listen to some of our podcasts to help you understand what Private Banking Strategies® can do for you.
• After that, please book an exploratory consultation with us.

While the concept of becoming your own banker is available to everyone, we like to say that if you spend more than you make, it won’t work for you.  We have worked with all walks of life.  We have helped those heavily sunk in debt come soaring back into financial freedom and we have worked with those who are already extremely wealthy and successful protect and keep what they have and become even more successful. Factors such as your financial situation, financial goals, and risk tolerance should be considered. Ideal candidates are pre-retirement and looking to protect their assets and their legacy.