Traditionally, many people view life insurance as an agreement of monetary protection for their loved ones or their business if they should suddenly pass on. While there is always that benefit with life insurance, specifically designed dividend-paying whole life policies have built in cash values and accrue an annual dividend payment. With specifically designed policies, practitioners of the Infinite Banking Concept are able to maximize their cash flow and minimize excessive taxation. This financial framework has been criticized by TV and Radio personalities that are syndicated across the United States. So why are banks the biggest purchaser of life insurance right now? Banks can purchase policies on their employees for a product called Bank Owned Life Insurance and many banks are purchasing more every year.

Bank Owned Life Insurance (BOLI) has been on the rise for years now, accounting for hundreds of billions in new purchases in the last 4 years. Banks are using cash value permanent life insurance to offset costs, reduce taxation and protect their immediate liquidity, but they won’t tell their customers that. If banks are using the living benefits of life insurance, why aren’t you?

Understanding BOLI

Bank Owned Life Insurance is basically a form of life insurance where the bank is both the owner and the beneficiary of a cash-value policy that they establish on executives and certain employees. They use these policies for two reasons: to reduce taxation and to offset the cost of employee benefits.

Money that’s protected within a specifically designed life insurance policy grows tax deferred, yielding a huge bump in income for the bank that grows tax free. Where your money in their banking system sitting in a regular savings account might grow at a rate of .01% annually, their money is growing steadily in a life insurance policy at a rate of nearly 4%, all while being deferred from taxation.

Paying benefits to every employee in any company can be expensive and it’s usually a huge drain on any company’s profit. So if banks can offset the cost of those benefits through BOLI and then they are the beneficiary of any payouts from employees that pass away, they are turning a tidy profit.




Why They Protect With Life Insurance?

The returns on life insurance for banks are so steady, consistent and profitable that it wouldn’t make sense for banks not to take advantage of the process. Basically the returns on Bank Owned Life Insurance are better than anything that the banks can achieve through traditional banking investments like municipal bonds and mortgage backed securities. The same products that banking experts try to sell their customers on aren’t even the ones that they are using to protect and grow their assets.

Getting In On The Action

While Bank Owned Life Insurance is specific only to banking institutions, you can apply the same process to your own financial plan. This isn’t some loophole that only banks can take advantage of, although they don’t want you to know that. You can receive the same tax protection and growth rates with a specifically designed dividend-paying whole life insurance policy. With the cash value in your policy, you can eliminate the need to go to a traditional bank and apply for a loan and their determined interest rates with penalties for nonpayment and nothing extra to show when you finally pay them back. You’re the bank with the Infinite Banking concept, using the cash value in your policy to make purchases, pay down debt, or even go on vacation, all without the need for anyone but yourself to sign off. That’s radical financial freedom.

Don’t do what they want you to with your money anymore. Do what they do with theirs and take over the banking function for yourself. Factum Financial wealth strategists can design a policy for you that maximizes your cash flow and gives you the freedom of banking on yourself. Contact a wealth strategist today for your free 30 minute wealth strategy session today.

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