How to Build Tax Free Wealth
How to Build Tax Free Wealth Without Market Risk
The Bank On Yourself strategy uses a specially designed, high cash value, dividend-paying whole life insurance policy to build tax-free wealth with guarantees that your principal and gains are not lost to market downturns. It is presented as a method to create a secure financial foundation and become your own source of financing.
How the Strategy Works
The core of the Bank On Yourself strategy is a custom-tailored dividend-paying whole life insurance policy from a financially strong, mutual insurance company with a long history of paying dividends.
Fund the Policy: You pay premiums into the policy. The policy is structured differently from typical life insurance, with a significant portion of the premium going toward building cash value quickly, often using a Paid-Up Additions Rider (PUAR).
Guaranteed Growth: The cash value in the policy grows every year by a contractually guaranteed amount. Once credited, both the guaranteed increase and any dividends are locked in and cannot be lost due to market volatility.
Access Your Capital (Borrowing): You can access your accumulated cash value through policy loans for any purpose (major purchases, business expenses, debt consolidation, retirement income).
Repay the Loan: You “pay yourself back” with interest, essentially recapturing the interest you would have paid to a traditional bank. The key benefit is that your cash value continues to compound without interruption, even while you have a loan outstanding.
Tax Advantages: The cash value accumulation grows tax-deferred, and you can access it and the final death benefit income tax-free under current tax laws.
Key Features and “Market Risk”
The strategy is promoted as being without market risk because:
• The underlying investments of the insurance companies are primarily in stable, high-grade fixed-income assets, not volatile stocks.
• The growth is based on contractual guarantees and dividends, not market performance.
• Your principal and prior gains are protected from market crashes.
I will help custom-design a policy tailored to your specific financial situation and goals.