Are You Your Own Banker?
Did you know that your life insurance policy can be treated just like a savings account, but with lots of additional benefits. You will see some downside in the first few years because you're buying insurance, of course. Around year 7 this will be caught up, so 100% of the premiums you have paid are available as cash value. Until that point, only about 90% will be. From that point on, 100% of your premiums go immediately into cash value for the rest of your life, and the account will NEVER go backwards. It will enjoy uninterrupted compound interest for your entire life, which will be passed on to your family, and only get bigger and better from there
Becoming Your Own Banker by Nelson Nash basically covers the concept and how to wrap your mind around it.
Here is a 2-part that shows the theory and then shows the math.
Here's one where they break down an example of paying cash vs. borrowing from a policy for real estate purchases.
Here's a more detailed vacation example:
Another example with real estate:
Here's one on using the policy as your savings account for tax money that you know you're going to owe.
There is some fluff in their videos, but not as much as most others.
Truth Concepts - Qualified Plans - https://youtu.be/GP2d3BhzWB0. This one uses the calculators that I mentioned to show an example of what happens inside a qualified plan and how it compares to life insurance cash value.
Truth Concepts - The True Cost of Paying Cash - https://youtu.be/lp1BZcex6ds. This one just uses the calculator to look at what's really happening when you pay cash for things. Shows how you finance everything in life whether you pay cash for borrow money for it. You either pay an interest payment to somebody else, or you lose interest that you would have otherwise earned if you didn't spend the cash. Cash value life insurances allows you to both safe and compound cash AND spend / invest at the same time.
NOTE - Many of the examples given are for purchasing things like cars, vacations, etc. That's because it's easy to understand the concept when you see the examples like that. However, this is not the recommended way to use the policy.
Instead, a policy like this should be part of your wealth building strategy. The cash should be used to purchase cash flowing investments, which will pay the policy back + interest. This could be a small business of some kind, real estate, private lending, or even buying super bowl tickets and selling them for a profit. Whatever you know best for investing is what the cash should be used for.
So not only are you earning your expected returns on that cash in your actual deals, but at the same time those same dollars are earning money for you inside the policy as well, giving you an extra boost on any return the deal itself makes.
Just wanted to make sure that point is clear...while you can use the cash in these accounts for anything you want, the true power of this whole concept comes from investing it in assets that will pay it back plus some more.