Live Your Life Insurance

When properly set up, your policy can literally become your own bank. In order to get the most out of it, and prevent frustration down the road with the flexibility or access to money or funding source, you have to make sure that the policy is well designed, with the right company!

The money that is deposited into the policy is protected from the creditors, which is a perfect way to ensure that your money will be there when you need it. Nobody can foresee what could come down the road, and having a secure and safe place to park your money is worth its weight in gold.

There are three main ways to optimize (reduce) your taxes:

– first, once you have deposited money inside a policy, it will grow tax free,

– second, when you go to access it or leverage it, you can do so without any taxes (you’ll pay interest on the loan, but no income tax),

– finally, with a properly designed policy, your biggest tax bill (when you die) is avoided by a direct transfer of the money to your heirs either in the form of a death benefit, or in the form of a policy containing a large cash value (equity).

RESP are good in the fact that they do offer the potential to add 20% to your savings, which shouldn’t be overlooked. The challenge though is that they are usually very regimented, and won’t allow you to access the money for any other reasons.

With a properly designed life insurance policy, you can create an education fund, but you can also access the money for any other reason that might be more critical than the education that you’re trying to save for.

I briefly touched on that in the tax topic above, but a properly designed whole life insurance policy will offer significant estate transfer benefits.

Either in the form of a death benefit, which is basically the transfer of a big amount of cash without any taxes, or in the form of a policy with a certain amount of money held into it, similar to equity in a property. Regardless of what the amount of money sitting inside the policy, the transfer down the generation happens without any taxes.

Setting up a legacy of infinite banking can spread over a couple generations, but once established, it can continue to grow with amazing speed and efficiency.