Whole Life Insurance is bad, right?

In this #tbt podcast, Mike and Chris dive into something we hear all the time, that whole life insurance is a bad place to store your money. In fact, I bet you’ve either said it yourself, or heard someone make the claim. However, this is the absolute brilliance of Nelson Nash and his Infinite Banking Concept. When you take a step back and look at it through the lens of this podcast, or for that matter through the lens of Nelson Nash himself, you will quickly realize that there is in fact NO better place to store your money. If you are still in the camp that whole life is bad, I suggest listening to this podcast, you might come away with a new perspective!







Whole Life Insurance is bad, right? Transcript

Chris Bay:

Welcome to the Life Success & Legacy Podcast. My name is Chris Bay, and I’m joined today with the founder of Life Success & Legacy, Mike Everett.

So Mike, today, I want to address one of the questions that was a huge stumbling block for me. When Shawn and I first were introduced to this concept of Infinite Banking and I got a hold of Nelson Nash’s book, Becoming Your Own Banker, and I read it multiple times, there were pieces that really fit and made sense to me. But I had a mental block, and that was because I had been taught that whole life insurance was the worst place in the world to put our money.

Mike Everett:

We hear this over and over.

Chris Bay:

So let’s dig into that. There’s a lot of people out there, a lot of financial people, a lot of financial personalities, that are out in the world that are saying whole life insurance is the worst place in the world to put your money. Why did they say that?

Mike Everett:

Well, if you go and you look at a traditional whole life insurance policy and the way it’s designed, I really would tend to lean towards what those personalities have said, that whole life insurance is a bad place to put money.

But if you go back a couple of generations right now and you think, “Where did people put money before 401ks and IRAs became the traditional place to put money … ”

Chris Bay:

Tax qualified plans.

Mike Everett:

You got it.

Chris Bay:

Before those every came about.

Mike Everett:

I’m going to just tell you. The only place most of those people, and you’re talking about my grandparents and my great-grandparents, they only had one place that they could … Well, excuse me, two. They put it in whole life insurance programs, policies, or they put it under the mattress at home. That’s the only place that they did.

But if you go back and you think like Nelson does, you think long term. Whole life insurance is the safest place you can put your money regardless of how it’s designed. But because of the way in which we go about re-engineering the way the money is allocated in the policy, it’s the safest, best place in the world, and it’s got more guarantees than anything that somebody would put their money in.

Chris Bay:

Yeah, I think from my standpoint, or at least how I was taught to think about money, it’s because whole life insurance may be traditionally designed, which was designed to emphasize the death benefit. You want to pay as little as possible.

Mike Everett:

That’s right.

Chris Bay:

Right? Well, when you look at that and you’re looking at it purely as an investment, that maybe it doesn’t match up to some other things. But honestly, I’ve seen some work out there by some folks, where actually it can even show up to be better than some of the investments that are out there.

Mike Everett:

Well, in Nelson’s book, I’m going to just tell you, he uses a couple of examples, one with the twins and one with the equipment financing.