The Money Guy Show Infinite Banking Review – REVIEWED – April 18, 2024
Without PRIVATE INSURANCE, nothing happens, society can’t grow, and attracting capital will be far harder than it is today. One of the MAIN reasons why the continent of Europe struggles to attract capital in comparison to Canada and the United States revolves around the rules and regulations that GOVERN, their INSURANCE industries.
So when I listen to idiots who talk about life or any insurance products in a lackadaisical manner, I take it as an attack on Western Values. One of the reasons a lot of us are AGAINST government OVERREGULATION in the financial sector is because of people like Dave Ramsey and The Money Guy Show who present their audience with COOKIE CUTTER solutions to creating wealth.
In case you’re not paying attention, Dave Ramsey and The Money Guy Show make a lot of their own money by recommending financial products and living off the income they get from their content.
I’m all for capitalism, but in life, there are no solutions; there are only trade-offs, and that’s the Life Insurance industry in a nutshell. If you purchase Term Life Insurance and invest the difference, you better make sure you’re rich by the time you turn 60 because if you’re not, your term life insurance premiums are about to skyrocket.
Term Life Insurance is cheap because the insurance companies are banking on you outliving the term of your life insurance contract.
There’s no FREE LUNCH in Life Insurance, and there are three main types of life insurance: Term, Universal Life, and Whole Life Insurance. Universal Life Insurance is structured similarly to a term life insurance contract; the difference with Universal Life and why you should ALWAYS consider Universal Life instead of Term Life is that the insurance company CAN only cancel your universal life insurance contract if you DO NOT pay your premiums.
This has SAVED people in their 60’s who comprehend that a Universal Life Insurance contract is ASSET, meaning that you can literally use it as leverage in the event you come to the realization that your premiums are skyrocketing, and you can’t afford to pay them.
So, if you had a horrible insurance agent who didn’t explain to you how Universal Life Insurance works, you can still use the death benefit(Hopefully, you took the million-dollar+ death benefit policy) as leverage to get someone to assist you with making your premium payments.
The death benefit in a university life insurance contract, as long as it’s revokable, can be changed, potentially to an individual who can help you pay your premiums to get a piece of the death benefit. I’m only outlining ONE of the benefits of permanent life insurance that the idiots who “Buy Term, invest the difference” can’t even conceptualize.
You’ll notice that I haven’t even discussed dividend-paying Whole Life Insurance yet. That’s because Infinite banking is just another creative way to use permanent life insurance.
What makes Whole Life Insurance different are the CONTRACTUAL guarantees, as well as the FIXED premium schedules and the POLICY LOANS. The idiots who recommend buying term and investing the difference don’t want you to know that you can also BUY WHOLE LIFE and INVEST THE DIFFERENCE.
Why spend the extra money purchasing whole life insurance? Because the insurance company cannot cancel the contract while you’re alive as long as you pay the premiums. This even includes using policy loans and NEVER PAYING THEM BACK.
The writer of the infinite banking concept recommends paying back policy loans, which is common sense if you think about it, but you don’t have to pay it back, and there are no MINIMUM payments to repay policy loans every month.
Once you conceptualize that in about ten years(to be safe), your whole life insurance policy is basically free, and PAYING YOU MONEY to own it then you’re sending the insurance company, it opens up a whole new world of wealth that the average person will NEVER understand because they don’t have the discipline to SAVE money.
This is where I take issue with one-size-fits-all approaches to wealth because if you have the DISCIPLINE to save money and invest, whole life insurance is one of the best financial products in the world.
If you read the Infinite Banking concept, it’s a book based on SAVING money and using the best SAVINGS financial instrument, which is dividend-paying whole life insurance. People old enough to remember know that Whole Life Insurance used to be sold as a SAVINGS tool.
But then, obviously, the more aggressive financial salespeople started arguing that the returns on whole life insurance were HORRIBLE; why not buy term insurance and invest the difference?
This completely ignores the fact that WHOLE LIFE INSURANCE has a GUARANTEED death benefit CASH wind fall, and the insurance company can’t base your DEATH BENEFIT guarantee on stock market RETURNS. Your death benefit guarantee is FIXED, and if you purchase paid-up additional insurance, your death benefit continues to rise every year.
The average man dies at around 77 years old; if I purchase a million-dollar whole life insurance policy in my 30s, that million dollars are GUARANTEED when I die, and in the meantime, I could also BORROW from my whole life insurance policy and INVEST in Dave Ramsey’s mutual funds, if that’s what my heart desires.
If the returns Dave talks about are accurate, I’ll EASILY be able to pay back the policy loan, so to pin insurance against the stock market is ridiculous. Money revolves around how you think about money, and you’d better be careful to take financial advice from these ONE-SIZE fits-all financial talk show hosts.
Interesting times ahead