The INVESTMENT GRADE LIFE INSURANCE (IGLI) Account
'BANK On YOURSELF'
'INFINITE BANKING CONCEPT'
There are few concepts and/or strategies that can literally change your entire economic system from the ground up - this one can and will if implemented. Often referenced under different concept names and descriptions, this under-utilized planning approach can make big differences in a family's financial health (as well as that of any business). Implemented benefits are visible quickly, and they last a lifetime.
Every year, millions of Canadians accept losing the majority of what they earn. The well known factors are taxation, interest expense, and consumption. We have all accepted this fate - perhaps too well.
Unfortunately, the average savings rate is 3% - too far from the praised 10% goal many of us have heard about. Debt levels are at all time highs, and despite good earnings, and a great economic period, most find that they have less financial control than ever before. Yet good habits are not quite enough - what is needed is an effective strategy, and a platform and a vehicle on which results can be banked and relied upon.
What if there was a way to save so effectively that performance matched good markets, yet peace of mind was present as a result of guarantees, and ... should there be tragedy in the family, then there would be a tax free / tax advantaged insurance coverage pay out?
Books by Nelson Nash "Becoming Your Own Banker", and Pamela Yellen's New York Times BestSeller "The Bank On Yourself Revolution: Fire Your Banker" best describe in detail the advantages deeper financial planning can make.
Despite years of experience in the stock markets, and investing in traditional RRSP's with conventional investment mandates, it became obvious to us that our results were not what they should have been, nor what we expected them to be. To add, good percentage returns are not enough - volatility and taxation erode most investment savings plans.
What if there was a way to create a financial foundation on top of which traditional volatile investments could be built?
When structured properly, dividend paying participating whole life policies can turn a humble savings accounts into a supercharged asset unmatched by any other financial vehicle on the planet.
It will provide insurance protection, a tax free death benefit, AND cash value that is controlled by YOU - the owner of the policy. It's compound growth is legendary, and the cash value has liquidity that can be utilized to finance anything you need such as big ticket items, education costs, other investments, real estate, vacations, and your retirement.
All the while, the compounding growth continues to grow uninterrupted - even when funds are borrowed from your own asset. This utilization is what is referred to as "being your own banker".
For over 160 years, these types of policies have been paying out dividends in North America. This structure, once in place, can truly help cure over time the financial cancers we all experience - INTEREST EXPENSE - DEPRECIATION - INFLATION - and TAXES.
Using a purposeful designed Bank On Yourself (BOY) policy will help a conservative investor be more at ease with their entire portfolio, performance will increase and risks will decrease. And, it will help a sophisticated investor experience better overall portfolio performance as the utilization of capital is improved.
Many clients increase their participation over time as they become accustomed with the benefits and the simple process.
Most clients wish they had started on this journey earlier, yet are glad they did finally get started. And, as a result, all clients actually begin the plans with their children and grand children, ... "the best time to plant a tree was twenty years ago. The second best time is now."