The Before Asset …
The before asset is the specific choice of using participating whole life insurance (PWLI) contracts from a mutual carrier to implement the Infinite Banking Concept.
Why
The before asset is not about deprivation. It is about sequencing financial decisions in a way that benefits both the owner and the owner’s legacy. Order impacts outcomes, and the before asset is built for arranging that order intentionally for one’s own benefit.
What
The before asset uses a system of participating whole life insurance (PWLI) contracts coupled with convertible term life insurance from one or more mutual insurance carriers to help a family reclaim long-term control over key banking functions, generationally.
These functions include the acts of exchanging, saving, storing, increasing, deploying, and replenishing money and are typically conducted with a checking and savings account in conjunction with various structured and unstructured debt instruments through a third party disinterested bank relationship.
The before asset’s primary purpose is to completely replace that bank relationship with the insurance company to service all spending needs. To accomplish a system large enough to accommodate all spending needs, maximum actuarial insurability or human life value is often purchased to guarantee the right for future system expansion.
Once complete, the insurance-company-for-bank transplant creates the ideal private spending platform whereby the owners of PWLI contracts not only continue to enjoy their typical spending but also participate in the financial benefits created by that same spending.
How
Rather than liquidating assets or interrupting long-term growth, this approach allows the owner to meet spending needs while preserving the underlying asset base. Leverage instead of liquidate. The collateral for the leverage is the PWLI contract(s) issued by lender or insurance carrier from which the carrier guarantees the appreciation of the contract!
Overview:
- PWLI contracts increase in value each year through contractual guarantees -perfect collateral with the company making the guarantees.
- That growing value creates a strong foundation for storing capital.
- Cash flow is directed into the before asset rather than into traditional savings vehicles.
- When spending needs arise, the owner can collateralize the before asset with the insurance carrier to access the insurance carrier’s cash.
- Afterward, the owner replenishes the before asset by satisfying the lien or liens with cash flow.
- The carrier must be mutual in structure, so policyholders are the only ones entitled to receive annual dividends.
- The before asset is designed not only to support the current generation’s spending needs, but also to serve future generations. In that sense, the system is intended to benefit an entire lineage, not just one individual.
The Before Asset is NOT:
- A way, method, or excuse to sell PWLI.
- Any asset, or property, or combination of assets or property, outside of PWLI from a mutual carrier, used to personally control the banking functions.
- Deliberately utilizing banks for any purpose outside of helping transition/migrate the banking functions away from banking intermediaries and toward mutual life insurance carriers.
- A PWLI contract from a mutual carrier designed with disregard to maximum efficiency of the insurability with respect to lifetime cash flow absorption.
- A PWLI contract from a mutual carrier designed with the obsession of current cash value egregiously above current spending needs with disregard of future benefits, future legacy, and lifetime cash flow absorption.
- Limiting a PWLI contract from a mutual carrier to being just a piece of the financial puzzle (e.g., a tool to access leverage for asset purchases, refinance existing debt, address estate planning, or simply death benefit, etc.) as taught in Modern Financial Planning.