I’ve been investigating this concept of what some are referring to as “infinite banking”. It is a way to essentially change your mindset to act as your own bank in the future. If you’re unfamiliar with the concept I’ve started looking at YouTube videos and found a good set of videos by perpetualwealthacademy.com.
This is a way to stop some of the wealth drains (in the form of income taxes, interest, and fees) typically paid to banks and Wall street and start paying yourself while you flip the script. Instead of the bank capturing the interest volume and velocity you’d be capturing it. A simple example would be to finance a car through a policy loan in your life insurance policy instead of going through a bank. Now there are definitely some setup costs, and cost of insurance charges that need to be analyzed, but it’s the long term thinking that can really pay dividends in this setup and I’m checking possibilities myself.
I’ve been investigating what type of guaranteed rate I could get on a policy through New York Life. I believe to get a favorable setup one needs to go through a mutual company, not a publicly traded company. I’ve heard this but still investigating why this actually is. If you have any information on that aspect I’d be curious.
The first step I had was a couple of days ago on the phone. It was a forty minute phone screening. We discussed my:
- Financial health. I was quickly able to tell her my net worth 🙂
- Past visits to doctors and medications that I’d taken, as well as family medical history
- Activities that I partake in. FYI I am not a motorcycling, base jumping, skydiving brohan
- Drug/Alcohol use, which I have none of
The next step is a person will come to my house and take a urine and blood sample. This is after all a life insurance policy. It’s actually kind of fun going through the underwriting process. I’ve worked in life insurance for awhile now but kind of feel distant from the actual implementation. Maybe I’ll have a greater appreciation for what I had been working in after going through the process. I will be sure to keep you all updated on this.