The Money Advantage® Podcast | Infinite Banking Concept & Family Banking

In today’s post, Bruce and I (Rachel Marshall) want to bring you behind the scenes of a candid and educational conversation we had with Matt Ewald, Vice President of Life Insurance at Advisors Excel. If you’ve ever wondered when and why to use guaranteed universal life insurance (GUL) —especially in the context of estate planning—this one is for you.

We’ve been having more and more conversations with families who aren’t just thinking about how to grow their wealth—but how to keep it intact for the next generation. And when estate taxes enter the picture, the stakes change. It’s not just about protecting income anymore—it’s about protecting impact. About making sure what you’ve built doesn’t get lost in fees, confusion, or government claims.

Because when it comes to life insurance in the context of wealth transfer, you’re not just planning for protection—you’re planning for legacy.

Let’s get into it.

Why This Conversation MattersFrom Infinite Banking to Estate Strategy: A Shift in FocusGuaranteed Universal Life insurance 101: What It Is (and Isn’t)Estate Planning and the Tax ConversationThe Myth of “Set It and Forget It”What About Accessing Capital?Roth Conversions, IRA Taxes, and Legislative RiskThe Real Value: Peace of Mind, Not Just Rate of ReturnWhat We CoveredBook A Strategy Call

Why This Conversation Matters

If you’re like most of our clients, you’re already successful. You’ve created wealth, you’ve stewarded well—and now you’re asking deeper questions.

Questions like:

How do I pass on what I’ve built with intention?

How do I shield my estate from unnecessary taxation?

Is whole life the only tool for this? Or is there something else I should consider?

In this blog, we’re breaking down exactly what guaranteed universal life insurance is, how it’s different from traditional IULs and whole life, and why it could be a strategic piece in your legacy plan.

From Infinite Banking to Estate Strategy: A Shift in Focus

We spend a lot of time on this podcast talking about whole life and its power as a privatized banking system—a way to store capital, access liquidity, and fund your life on your own terms.

But not every financial goal calls for cash accumulation.

Sometimes, the goal isn’t to use the money during your lifetime at all. It’s to transfer wealth efficiently, minimize estate taxes, and ensure your heirs receive more—without the friction and loss.

And that’s where guaranteed universal life enters the scene.

Guaranteed Universal Life insurance 101: What It Is (and Isn’t)

Matt Ewald described guaranteed universal life insurance as a permanent term contract. That phrase stuck with me.

Here’s what it means:

GUL is designed to give you the most death benefit for the least premium.

GUL is a protection-first strategy.

The focus is not on growing cash inside the policy. The focus is on locking in a death benefit that will be there guaranteed—no matter what the market does.

And what makes it guaranteed?

The no-lapse guarantee rider.

This rider is the linchpin. It says, “As long as you pay the premium exactly as illustrated, this policy will not lapse—no matter how the underlying market indexes perform, no matter what cap rates change, no matter what happens behind the scenes.”

It’s simple. It’s predictable. And it’s ideal for estate planning when death benefit certainty is the priority.

Estate Planning and the Tax Conversation

Here’s the reality we’re facing:

The estate tax exemption today is high—around $13 million per person. But it won’t stay there forever.

Just 20 years ago, it was $1 million. And the political winds are already shifting toward reducing the exemption again.

That means more families will face estate tax exposure in the future—even those who don’t consider themselves “ultra-wealthy.”

And taxes at death are not just a theoretical problem. They’re real. They can erode up to 40% or more of an estate—unless you have the right strategy in place.

Guaranteed universal life insurance solves for one specific problem: funding the tax bill without selling off assets.

Think about it.

You’ve built a portfolio of businesses, properties, IRAs, and investments. But how much of that is liquid? And will your heirs have to sell it off—at a discount—to pay Uncle Sam?

Guaranteed life insurance sidesteps that risk. The death benefit shows up when it’s needed most, with zero taxes owed. It provides instant liquidity, bypasses probate, and funds the liability without touching your estate assets.

That’s powerful.

Here’s the key takeaway: Use the right tool for the right job.

As Matt said, trying to make one policy do everything usually leads to a diluted result. When we compartmentalize—designing different policies for different outcomes—we maximize both performance and peace of mind.

The Myth of “Set It and Forget It”

A mistake we see often? Assuming that once your policy is in place, your work is done.

Matt said it best: “No policy is as good as it is sold. It’s only as good as it’s serviced.”

Timing matters, especially with guaranteed universal life insurance. Premiums must be paid on time—consistently—to maintain the guarantee. If you’re late or miss a year, the no-lapse rider could be compromised, and that defeats the whole point.

That’s why we always recommend automatic payments, annual reviews, and clear communication with your advisor.

This isn’t “set it and forget it.” This is stewardship. And stewardship is what legacy is made of.

What About Accessing Capital?

Here’s where guaranteed universal life insurance and whole life differ dramatically.

If you want to use your policy to:

Borrow against your cash value

Fund real estate

Launch a business

Create passive income streams

Or serve as your personal bank

Then GUL is not your tool.

Guaranteed universal life insurance is a single-purpose strategy: high death benefit, minimal premium. It’s the opposite of banking-focused whole life.

Roth Conversions, IRA Taxes, and Legislative Risk

Another reason this conversation is so timely?

The Secure Act and Secure Act 2.0 changed the game.

Now, when your heirs inherit a Roth IRA, they must liquidate it within 10 years. That means no more lifetime tax-free growth. And if it’s a traditional IRA, the tax hit could be severe—especially if they’re already in a high tax bracket.

As Bruce shared, life insurance can be a smart strategy here too.

You can:

Pay taxes now on your IRAs through strategic Roth conversions

Reposition that after-tax money into life insurance

Pass on tax-free death benefit with no RMDs and no 10-year liquidation rule

And unlike Roths, there’s no legislative risk of future taxability. Life insurance proceeds are protected under current law—and have been for over a century.

The Real Value: Peace of Mind, Not Just Rate of Return

Let’s make one thing clear:

Yes, the internal rate of return on a guaranteed universal life insurance policy can be “better” if you die early.

But no one wants to die early.

The real value here isn’t in financial ROI. It’s in emotional ROI.

It’s the peace of knowing your family won’t have to sell the business.

It’s the clarity of knowing the IRS won’t get a windfall.

It’s the satisfaction of designing your legacy—not leaving it to chance.

That’s what GUL delivers. Not cash value you can use—but certainty your heirs can count on.

What We Covered

Let’s bring this all together.

Guaranteed universal life insurance (GUL) is a strategic tool for high-net-worth families looking to minimize estate taxes and maximize transfer efficiency.

It’s different from whole life—not better or worse, just designed for a different job.

The no-lapse guarantee ensures death benefit certainty—as long as premiums are paid exactly as planned.

These products are not for cash access, banking, or flexibility—they are for protection only.

Legislative risk is real, and life insurance helps hedge against future tax changes.

Your legacy is too important to leave to chance. Whether you’re preparing for future estate tax exposure, or simply want to steward what you’ve built with clarity—there are tools and strategies that can help you do that.

Use the right tool for the right job.

And if you’re not sure which one you need? That’s what we’re here for.

Don’t wait.

Your legacy is not the caboose of your life—it’s your engine.

Let’s design it with purpose.

Book A Strategy Call

Are you ready to take control of your finances and legacy? We offer two powerful ways to help you create lasting impact:

Financial Strategy Call – Discover how Privatized Banking, alternative investments, tax-mitigation, and cash flow strategies can accelerate your time and money freedom while improving your life today. Let us show you how to align your financial resources for maximum growth and efficiency. Book a Strategy Call with our team today.

Legacy Strategy Call – If you want to uncover your family values, mission, and vision, and create a legacy that’s about more than just money, we can guide you through the process of financial stewardship and family leadership. Save time coordinating your family’s finances while building a legacy that lasts for generations. Book a Legacy Strategy Call to learn more about how we can help.

We specialize in working with wealth creators and their families to unlock their potential and build a meaningful, multigenerational legacy.

There’s a story Buffy Ruthardt shared that still gives me chills.

She and her husband Darren were on a drive, just processing life and legacy—wondering aloud what it might look like for their children to live in their inheritance while they were still alive. Not just financially, but spiritually, relationally, and generationally.

https://www.youtube.com/live/dMMgfxEohsI

It was a bold idea.

But they didn’t know how to do it. No roadmap. No clarity. No strategy to get there. And then… they heard a Facebook ad for Seven Generations Legacy®.

That was the nudge.

They followed that moment of divine appointment to begin faith-based legacy planning, and today, their family is operating with a whole new level of clarity, unity, and purpose.

“We were doing our best… but we had no tracks to run on.”Faith-Based Legacy Planning in ActionFrom Disconnected Assets to a Unified Legacy VisionThe Meaning: Writing Down the Culture That Was Already ThereThe Mechanism: Getting the Legal and Structural House in OrderThe Money: From Siloed Accounts to Stewardship StrategyThe Fruit of Faith-Based Legacy Planning: Family Meetings, Health Goals, and a Future PodcastWhat It Really Means to Align Wealth with ValuesWant to Build Your Own Legacy?Book A Strategy Call

“We were doing our best… but we had no tracks to run on.”

I’ll never forget this moment.

Buffy and Darren sat across from me on Zoom, eyes bright with conviction, reflecting on their journey. They’d built a beautiful life—decades of hard work, provision, blessing. But as they looked at their children, now adults, they knew something deeper was stirring.

“We had direction,” Buffy said, “but no map.”

That’s when they found the Seven Generations Legacy® Coaching Program. And everything changed.

They weren’t just searching for a way to preserve wealth. They were on a mission to steward something sacred: their faith, their values, and the legacy they knew God had placed in their hands for generations to come.

Faith-Based Legacy Planning in Action

When we talk about faith-based legacy planning, we’re not just talking about trust documents or estate strategies. We’re talking about shaping the kind of family culture that lasts beyond your lifetime.

That’s what Darren and Buffy came looking for—and that’s what they built.

They had wealth. They had faith. They had a vision.

What they needed was a mechanism.

At The Money Advantage™, we don’t talk about inheritance the way the world does. This isn’t about how much you leave—it’s about what you leave in the people you love.

If you’ve ever thought…

“I’ve built something valuable—but how do I pass it on with meaning?”

“Our kids aren’t quite ready… but I want to guide them.”

“We have the assets, but not the structure. Where do we start?”

…then you’re not alone. And this story is for you.

In this episode of The Money Advantage™ Podcast, we unpack their full journey—from feeling stuck with disjointed entities and unspoken hopes… to confidently stewarding their family’s meaning, mechanism, and money with purpose.We’ll walk you through Darren and Buffy’s real-life experience using the Seven Generations Legacy® process, including:

Why they felt stuck, even after decades of success

How they aligned their faith, finances, and family

The power of creating meaning and mechanism—not just money

What happened after they hosted their first Family Legacy Summit

This isn’t theory. This is transformation.

If you’ve ever wondered how to truly align your values with your wealth—or how to pass on something deeper than money—this story is for you.

From Disconnected Assets to a Unified Legacy Vision

Darren and Buffy didn’t come to Seven Generations Legacy empty-handed.

They had two decades of successful business ownership, investments, and assets. But what they didn’t have was an integrated plan—or a way to ensure it wouldn’t all unravel when passed to the next generation.

They weren’t falling apart. They were faithful, successful, deeply intentional people. But like many high-capacity couples, they sensed the weight of stewardship without a roadmap.

The vision was clear. The how was not.

Their words?

“We didn’t want to just turn it over to our children and not teach them how to care for it and steward it.”

They had a vision, but no tracks to run on. The first step in faith-based legacy planning was aligning their wealth with their why.

And that meant starting with meaning.

The Meaning: Writing Down the Culture That Was Already There

One of the most powerful moments in their process was realizing—God had already written their family’s culture into their hearts.

They just hadn’t articulated it yet.

Through the Seven Generations Legacy framework, they began identifying their family values, clarifying their vision, and drafting love letters and a family guidance system that captured their heart and faith in written form.

As Buffy said:

“We realized how transformed we’d already been. The Lord had already done this for us—we just needed to write it down.”

What started as a discovery turned into deep affirmation. They wrote their Family Guidance System, drafted love letters, captured their beliefs, and realized that legacy wasn't something to create from scratch. It was already alive inside them—it just needed to be written down.

Scripture came alive. Vision crystallized. And suddenly, the Ruthardts were speaking to their children with renewed clarity, confidence, and unity.

They weren’t just passing on assets. They were passing on identity.

The Mechanism: Getting the Legal and Structural House in Order

Meaning is critical. But without a structure—a mechanism—legacy becomes just a hope.

This is where the real clarity clicked for Darren and Buffy.

With our team’s help, they:

Restructured outdated business entities

Created a custom trust structure that fit their values

Drafted guidance documents that aligned with their faith and family vision

Put in place a system that could carry more abundance, not just preserve what they had

This wasn’t just about legal compliance. It was about clarity and peace.

“It felt like our house was in order,” Buffy said. “And that brought peace.”

Their favorite part? The mechanism. Because it didn’t just organize their financial life—it brought their entire household into alignment.

They now have structures that support stewardship, create clear roles, and honor the vision they’re passing on.

The Money: From Siloed Accounts to Stewardship Strategy

The money conversation came last—but not because it’s least important.

In fact, it’s vital.

But for Darren and Buffy, the money only made sense once the meaning and mechanism were clear. Then, they could allocate resources in a way that aligned with their values.

Darren put it simply:

“If you don’t take time to do this… you won’t.”

They had the resources. But they didn’t want wealth to pass down without wisdom. They knew their children needed to understand how to steward what they’d built—and why it mattered.

Through the Seven Generations Legacy framework, they brought their adult children into the conversation. They held their first Family Summit. They invited vulnerability. And by the end of the day?

“No one wanted it to end,” Buffy said.

They weren’t handing over money. They were handing over mission.

From family summits to charitable vision, they’re now leveraging their wealth to support health, unity, and purpose—in their children’s lives and in their community.

The Fruit of Faith-Based Legacy Planning: Family Meetings, Health Goals, and a Future Podcast

The real results?

They aren’t just financial.

Darren and Buffy now lead regular family meetings with their adult children. They’ve aligned around shared health goals. And they’re launching a podcast called Roadmap to Renewal to help other families do the same.

Buffy calls it “generational health transfer”—not just wealth or wisdom, but full integration of spirit, soul, and body.

Their family is now on a mission.

But they didn’t start there.  They started with a step.

Clarity. Support. Vision. And a team walking with them every step of the way.

What It Really Means to Align Wealth with Values

What Darren and Buffy show us is this:

Legacy isn’t what you leave behind. It’s what you build now with your family.

They didn’t just create a set of documents. They created a living system that reinforces their values, blesses their children, and prepares them to be wise stewards.

They built with eternity in mind—and with strategy that works.

Their story is proof that faith-based legacy planning isn’t just possible—it’s powerful.

It’s the bridge between financial success and generational impact.

Want to Build Your Own Legacy?

Buffy said it best:

“We had abundance… but no tracks to run on.”

Now, they’re building tracks—ones their family can follow for generations.

If you’re in a place where you’ve built success but lack direction…If you’re craving clarity for your family’s future…If you want a legacy that outlives your lifetime…

You are not alone.

The Seven Generations Legacy process was designed for you.

Because success alone isn’t enough. Your legacy needs meaning, mechanism, and money—aligned, integrated, and passed on with purpose.

You don’t need to have it all figured out.

But you do need to take the first step.

Book A Strategy Call

If you’re ready to dive deeper into creating generational wealth, start with my book, Seven Generations Legacy. It’s packed with actionable insights and strategies to help you build a strong foundation for your family’s future. Once you’ve explored the principles, let’s take the next step together. You can book a call with me at Seven Generations Legacy®, where we’ll work to create a personalized plan tailored to you

Let me tell you a quick story.

Imagine walking into your local grocery store, grabbing a can of peas, and sneaking out the back door without paying. It sounds ridiculous—maybe even unethical, right? Now, imagine the opposite: You pick up the same can, go to the register, pay for it, and walk out the front door with a receipt in hand. 

https://www.youtube.com/live/GZ7wNDb-ugY

That simple act—paying at the register instead of sneaking out the back—perfectly illustrates one of the most misunderstood aspects of how to design a whole life policy for Infinite Banking.

In the world of Infinite Banking, how you design your policy—how you pay into it, structure it, and use it—determines whether you’re building a self-sustaining system or just draining your wealth through the back door.

Why Policy Design Isn’t Just Technical—It’s TransformationalWhy Most People Start Too Small—or Too FastHow to Design a Whole Life Policy for Infinite Banking That Lasts a LifetimeUnderstand the Balance: Base Premium vs. PUAYou’re Plugging Into a 200-Year-Old Business ModelCompound Interest Only Works If You Stop Interrupting ItLegacy Isn’t a Caboose—It’s the EngineWhat Happens When You Design It RightBook A Strategy Call

Why Policy Design Isn’t Just Technical—It’s Transformational

Most people hear about infinite banking and jump to the mechanics: “Just get a whole life policy, borrow against the cash value, and repeat.” But here’s what they don’t realize—the policy design is the difference between building a thriving family banking system and being stuck in financial frustration.

It’s not just about having a policy. It’s about knowing how to design a whole life policy for infinite banking that supports liquidity, growth, leverage, and generational transfer.

In this blog, we’re going to walk you through:

Why policy design matters more than people think

The difference between base premium and paid-up additions (PUAs)

The hidden costs of “high cash value” quick starts

How to build a system of policies, not just one

Why thinking generationally changes everything

By the end, you’ll understand exactly how to create a design that serves your financial life now and becomes a blessing to future generations.

Why Most People Start Too Small—or Too Fast

We see it all the time. Someone discovers infinite banking and gets excited. They want a policy with the most cash value right now. And that’s not wrong—it’s just shortsighted.

Here’s the truth: Policies that prioritize high early cash value often sacrifice long-term performance.

The reason? To make those numbers work, designers load up the policy with PUAs (paid-up additions) and sometimes minimal base premium. That means you get very high liquidity early, yes—but you may cap out your insurability and miss the long-term efficiency that comes from a well-balanced policy.

As Joe put it: "The only truly bad policy is the one that uses up all your capacity and then handicaps you from fixing it later."

The real win is designing a policy you can grow with—and expand into a system over time.

How to Design a Whole Life Policy for Infinite Banking That Lasts a Lifetime

Nelson Nash, the father of infinite banking, made it crystal clear: You’re not solving your entire banking need with a single policy. You’re building a system—a privatized family banking system that scales with your life.

If you view your first policy as the only policy, you’ll over-optimize for short-term performance and miss the compounding tailwinds available when you structure for longevity.

Instead, when you're considering how to design a whole life policy for infinite banking, think in terms of scalability. Start with one. Make sure it’s structured well. Then expand.

Think of it like building a fleet of airplanes, not just one solo jet. Each new policy adds to your system's speed, altitude, and carrying capacity. Over time, the system becomes more efficient—and more profitable.

Understand the Balance: Base Premium vs. PUA

Here’s where the technical meets the strategic.

Base premium is the foundation. It provides the guaranteed death benefit and builds slow but stable cash value. It’s also what allows you to receive dividends and grow efficiently over time.

PUAs offer liquidity. They accelerate early cash value but don’t provide the same long-term power as the base.

Now, both are valuable—but only in balance. You need enough base to give your policy legs and long-term efficiency. Too much focus on PUAs can actually restrict your future expansion if the policy becomes maxed out and you lose your insurability.

The key question is not “How much cash value can I access today?”It’s “How do I position my capital to serve me 20, 30, even 70 years from now?”

You’re Plugging Into a 200-Year-Old Business Model

This isn’t a startup idea. This isn’t crypto. You’re not gambling with your future. When you design a whole life policy for Infinite Banking, you’re plugging into a business model with over two centuries of success.

We’re not building something unproven. The insurance companies we work with have weathered wars, depressions, pandemics, and every kind of economic cycle—and still delivered guaranteed growth, dividends, and rock-solid death benefits.

It’s like buying into a well-run business with no management headaches. You get the leverage, the logistics, and the legacy—all with institutional-level stability.

That should give you peace of mind.

Compound Interest Only Works If You Stop Interrupting It

One of the most important insights from the episode is this: Every time you spend your savings and reset your capital to zero, you interrupt compounding.

That’s why traditional “save and spend” models don’t build wealth. You save up. You make a big purchase. You drain the account. You start over.

In Infinite Banking, we’re doing the opposite.

We capitalize early, protect the principal, and borrow against it instead of spending it. That allows your cash value to keep growing—even while you use it. And over time, that uninterrupted compounding is what builds real wealth.

Your future—and your legacy—depends on staying in the game long enough to let compounding do its work.

Legacy Isn’t a Caboose—It’s the Engine

If you’ve listened to our podcast for any length of time, you know we don’t treat legacy as an afterthought. Your legacy is not the caboose of your life—it’s your engine.

And that’s why policy design matters so deeply.

When you design a whole life policy with a long-term lens—when you build in expansion capacity, guarantee future insurability, and think generationally—you’re not just creating cash flow for yourself. You’re passing down blueprints, not just balances.

We’ve seen this work with real families. We've seen second and third generations step into fully capitalized banking systems—receiving a leveraged death benefit and then using that capital to create their own wealth.

That only happens when the first generation designs the system right.

What Happens When You Design It Right

So let’s come back to the big question:

How to design a whole life policy for Infinite Banking?

You think long range—70+ years, not just 7.

You balance base premium with PUA for both liquidity and efficiency.

You leave room for expansion—because one policy is just the beginning.

You work with a team who understands the cash flow dynamics of your whole life, not just a life insurance contract.

You stop interrupting compounding and let your capital grow through you.

When you do that, you’re not just “getting a policy.” You’re building a self-sustaining banking system that multiplies your wealth, transfers your values, and strengthens your family tree.

Book A Strategy Call

Are you ready to take control of your finances and legacy? We offer two powerful ways to help you create lasting impact:

Financial Strategy Call – Discover how Privatized Banking, alternative investments, tax-mitigation, and cash flow strategies can accelerate your time and money freedom while improving your life today. Let us show you how to align your financial resources for maximum growth and efficiency. Book a Strategy Call with our team today.

Legacy Strategy Call – If you want to uncover your family values, mission, and vision, and create a legacy that’s about more than just money, we can guide you through the process of financial stewardship and family leadership. Save time coordinating your family’s finances while building a legacy that lasts for generations. Book a Legacy Strategy Call to learn more about how we can help.

It started with a bold question that showed up in a public comment: "If infinite banking is so powerful, why wouldn't I just put all my income into a whole life policy?" That single comment sparked a deeply layered, thoughtful conversation that we knew needed more attention.

It wasn't criticism. It was curiosity.

And curiosity, when channeled with wisdom and humility, can be a catalyst for generational transformation.

So today, we’re opening up that conversation—and giving you the full picture of what it really means to go "all in" with infinite banking.

What You’re Really Asking When You Consider Putting All Your Income into a Whole Life PolicyShould You Really Put All Your Income into a Whole Life Policy? (The Real Answer May Surprise You)The Spirit Behind the Question Think Long Range: The Power of Time Don’t Be Afraid to Capitalize—But Be Strategic Policy Design: Base vs. PUA, and Why It Matters Understand Insurability and Premium Affordability Sustainability Is Freedom The Danger of Over-Leveraging and Poor RepaymentWhy All Your Income into a Whole Life Policy Shouldn’t Be Your Only StrategyBook A Strategy Call

What You’re Really Asking When You Consider Putting All Your Income into a Whole Life Policy

The idea of putting all your income into a whole life policy sounds bold—even radical. And in the context of the infinite banking concept (IBC), it’s a question worth exploring.

As someone who's lived and breathed this philosophy, I (Rachel Marshall) have heard this question before. And in this conversation with my colleague Joe DeFazio, we wanted to approach it with both clarity and candor. Because here’s the truth:

Yes, whole life insurance and infinite banking can be incredibly powerful tools for financial freedom, stewardship, and legacy-building. But like any strategy, the design and implementation matter.

In this article, we're going to unpack the principles behind the idea of putting all your income into a whole life policy, the risks, the benefits, and most importantly—the mindset that helps you use this tool to its fullest, most sustainable potential.

You’ll learn:

- Why infinite banking isn't just about the numbers—it's about long-term thinking

- The role of policy design and insurability

- How to balance capitalization with sustainability

- Why freedom comes through commitment

Let’s dive in.

Should You Really Put All Your Income into a Whole Life Policy? (The Real Answer May Surprise You)

If you're asking whether to put all your income into a whole life policy, you’re not alone. It’s a question we hear often—and for good reason.

The Infinite Banking Concept is compelling. It gives you control, liquidity, privacy, and long-term access to capital. It feels like the financial tool we’ve all been waiting for—and in many ways, it is.

But let’s be clear: Infinite Banking is a system. Not a silver bullet.

Going "all in" on a whole life policy without the right structure is like planting seeds without soil. Yes, premium matters. But without a clear understanding of how that premium fits into your broader wealth strategy, you could easily find yourself over-leveraged and cash-strapped.

Nelson Nash taught us that capitalization is essential, but he never said to abandon wisdom in the process.

That’s why our answer is almost always: no, don’t put all your income into a policy.

Instead, fund it based on your long-term strategy, your liquidity needs, your investing rhythm, and your ability to keep the policy active through every season of life. Think marathon, not sprint.

When clients ask this question, we gently guide them back to the deeper one: What are you really trying to build?

Because when you understand the real vision, your policy becomes a tool—not a trap.

The Spirit Behind the Question

We weren’t offended by the question. Quite the opposite.

It takes courage to ask, "Why not go all in?" But before we can even answer that, we have to reframe how we think about infinite banking. This isn’t just about maximizing a policy for short-term gains. This is about building a family banking system that works for generations.

Nelson Nash called it the "arrival syndrome"—the tendency to think we know it all. But real transformation begins when we ask questions with an open mind.

Infinite banking is not just a product or a financial trick. It’s a paradigm shift in how you store, use, and grow capital.

 Think Long Range: The Power of Time

Nelson Nash emphasized thinking long-range. Most people want immediate results. But infinite banking is more like building a house than flipping a switch.

We build whole life policies that are designed to grow more powerful over time. Nelson often said it takes 20-25 years to fully capitalize a family banking system. Why? Because the real benefit of whole life policies kicks in after the policy is seasoned.

When dividends grow, when cash value outpaces premiums, when the system starts fueling itself—that's the harvest. But the seed-planting takes time.

So the answer to "why not put all your income into a whole life policy?" starts with this: Are you thinking long-term enough to see the fruit?

 Don’t Be Afraid to Capitalize—But Be Strategic

Yes, capitalizing a policy is critical. The more you put in (up to a point), the more your cash value grows. But the idea isn’t to dump all your money in at once.

Bruce and I shared a crucial insight: sustainability is just as important as start-up. If you design a policy with too much premium and can’t maintain it, you risk stalling your entire system.

Think about it like this: Would you rather fund a business once with everything you have, or build it over time so it thrives for decades?

If you go too big, too soon, you can max out your insurability, strain your cash flow, and potentially create a policy that collapses under its own weight.

 Policy Design: Base vs. PUA, and Why It Matters

Let’s talk technical for a moment. A whole life policy consists of base premium and paid-up additions (PUAs). The base is what gives your policy long-term strength, guarantees, and dividend efficiency. The PUA turbocharges early cash value.

A lot of people get hyper-focused on maximizing early liquidity—so they want a huge PUA and a tiny base. But this is shortsighted.

PUAs decline in efficiency over time. The base stays strong forever.

If you really want to put all your income into a whole life policy someday, you must prioritize a strong base. It’s what allows you to pay into the policy for decades, not just a few years.

 Understand Insurability and Premium Affordability

One of the most misunderstood factors is your human life value—the maximum amount of insurance the company will issue based on your income, assets, and age.

You might want to put $100,000 a year into a policy, but that doesn’t mean the company will allow it. Why? Because there are limits to how much insurance they’ll issue.

This is why we say: build your system over time. Get a convertible term policy. Create space for future growth. Don't paint yourself into a corner by maxing out too soon.

Also, insurance companies often cap your premium contributions to 30% of your income. If you exceed that, you’ll need extraordinary justification.

 Sustainability Is Freedom

Here’s the kicker.

We often think freedom means no obligations. But true financial freedom comes from chosen commitments.

When Lucas and I designed our latest policies, we made sure we could fund them as long as possible. Why? Because the greatest benefits come later. A long-term commitment to your policy is what creates enduring value.

We didn’t want temporary leverage. We wanted generational strength.

Just like a successful marriage, meaningful freedom in your financial life comes from honoring your commitment, year after year.

 The Danger of Over-Leveraging and Poor Repayment

Another danger of going "all in"? Borrowing too much without a plan to repay.

Your cash value is not free money. It’s collateral. If you take a loan and don’t repay it, your dividends suffer. Your policy weakens. You can lose control.

Think of it like a business line of credit. Yes, you can use it. But you need a strategy for replenishment. Otherwise, you’re eroding the very system you’re building.

Infinite banking is not about exploiting a policy. It’s about stewarding it.

Why All Your Income into a Whole Life Policy Shouldn’t Be Your Only Strategy

So should you put all your income into a whole life policy?

Not yet. Not all at once. And maybe not ever in the way you're thinking.

But should you move toward putting as much of your income as long as possible into a policy system that gives you control, liquidity, growth, and legacy

Yes.

Not because you're chasing a return. But because you're choosing stewardship.

You’re building a financial engine that fuels not just your freedom, but the capacity of your children and grandchildren to build wisely on your shoulders.

Book A Strategy Call

Are you ready to take control of your finances and legacy? We offer two powerful ways to help you create lasting impact:

Financial Strategy Call – Discover how Privatized Banking, alternative investments, tax-mitigation, and cash flow strategies can accelerate your time and money freedom while improving your life today. Let us show you how to align your financial resources for maximum growth and efficiency. Book a Strategy Call with our team today.

Legacy Strategy Call – If you want to uncover your family values, mission, and vision, and create a legacy that’s about more than just money, we can guide you through the process of financial stewardship and family leadership. Save time coordinating your family’s finances while building a legacy that lasts for generations. Book a Legacy Strategy Call to learn more about how we can help.

...

Recently, Bruce shared a story that perfectly illustrates unexpected life challenges—his basement flooded, turning a peaceful Easter weekend into an emergency cleanup session. Just as unexpected problems can flood your home, unanswered financial questions can flood your business strategy, especially questions like: "Can you deduct life insurance premiums?"

https://www.youtube.com/live/crKKtLvZ44k

Tax questions, much like sudden home repairs, can disrupt your carefully planned financial landscape. Whether it's water damage or unclear tax regulations, not addressing the problem can lead to costly mistakes down the road. Today, Bruce and I aim to clear up one of these significant financial uncertainties for business owners.

Why Understanding Life Insurance Deductions MattersUnderstanding the Deductibility of Life Insurance PremiumsCan You Deduct Life Insurance PremiumsThe Supreme Court’s Stance and Its ImplicationsStrategic Ways to Indirectly Deduct PremiumsAvoiding Short-Term Tax MistakesContracts vs. Accounts: Ensuring Long-Term CertaintyNavigating Complexity with Professional HelpThe Strategic Power of Life Insurance PremiumsBook A Strategy Call

Why Understanding Life Insurance Deductions Matters

The question "Can you deduct life insurance premiums?" isn't just a minor tax issue—it's central to building an efficient, effective, and robust financial strategy. Life insurance policies are powerful financial tools that, when used correctly, can significantly enhance your financial well-being. However, misunderstandings about their tax implications can lead to missed opportunities or even costly errors.

In this detailed article, you'll gain clarity regarding the question "Can you deduct life insurance premiums?", the rationale behind IRS rulings, practical and legitimate strategies to indirectly achieve similar benefits, and the pitfalls to avoid in your quest for tax efficiency. By mastering these concepts, you'll be well-equipped to incorporate life insurance intelligently into your broader financial planning strategy.

Understanding the Deductibility of Life Insurance Premiums

Can You Deduct Life Insurance Premiums

Bruce frequently encounters confusion among business owners about deducting life insurance premiums. Let’s clear this up immediately: in most cases, you cannot directly deduct life insurance premiums from your taxes if the business owner benefits directly from the policy. The IRS views this scenario as lacking genuine "economic substance," as the policyholder ultimately recoups these premiums through a tax-free death benefit, meaning there's no real economic loss to justify a deduction.

The Supreme Court’s Stance and Its Implications

Bruce highlighted a crucial Supreme Court ruling that set clear boundaries for tax deductions related to life insurance. This landmark decision explicitly stated that deducting premiums or interest on life insurance loans is generally not permissible when the insured party directly benefits. The reasoning is straightforward: since you or your estate will eventually receive these premiums back in the form of a tax-free death benefit, the premiums do not represent an actual financial loss or expense that justifies a tax deduction.

Understanding this ruling can save you from potentially costly mistakes and help you align your tax strategies with IRS expectations.

Strategic Ways to Indirectly Deduct Premiums

Despite the restrictions, Bruce and I discussed legitimate and strategic methods to effectively reduce taxable income and indirectly finance life insurance premiums:

Employing Family Members: Bruce pays his father for legitimate business-related marketing tasks. As his father falls into a lower tax bracket, this transaction reduces Bruce’s taxable income and generates additional cash flow, indirectly supporting life insurance premium payments.

Paying Your Children: Another powerful strategy is employing your children within your business. For 2024, each child can earn up to approximately $13,500 without paying federal taxes due to the standard deduction. This method simultaneously offers tax savings for your business and allows your children to fund life insurance premiums or other personal expenses, effectively creating tax advantages for your family as a whole.

Both approaches leverage legal IRS provisions designed to help businesses operate efficiently and strategically.

Avoiding Short-Term Tax Mistakes

Bruce and I firmly advocate against short-term, reactionary tax strategies. An important financial principle to remember is not letting "the tax tail wag the dog." It might seem beneficial initially to make large unnecessary purchases—like expensive equipment—solely for tax deductions. However, such actions often negatively impact your long-term profitability and financial health.

Always prioritize genuine business needs and long-term strategic value over immediate tax relief. This principle ensures sustained profitability and a stronger overall financial foundation.

Contracts vs. Accounts: Ensuring Long-Term Certainty

One critical insight Bruce shared is distinguishing between financial contracts and financial accounts. Accounts, such as retirement and brokerage accounts, remain vulnerable to future tax code changes. In contrast, life insurance policies are binding contracts that offer stability and certainty. Once established, their terms cannot be altered by future tax legislation.

This distinction is crucial for long-term tax and financial planning, providing predictable financial outcomes despite an unpredictable tax environment.

Navigating Complexity with Professional Help

Given the complexity of tax regulations and the frequent changes in IRS rules, partnering with knowledgeable tax professionals and life insurance strategists is invaluable. Bruce and I encourage every business owner to seek professional guidance regularly to ensure compliance, optimize strategies, and avoid costly errors. Expert advice helps you stay informed, proactive, and prepared for any tax law changes, ultimately securing your financial future.

The Strategic Power of Life Insurance Premiums

Returning to our core question: Can you deduct life insurance premiums? Direct deductions are typically disallowed, but savvy business strategies involving legitimate expenses—such as hiring family members or employing your children—can help reduce taxable income. This frees additional funds to support your life insurance strategies effectively.

Additionally, the intrinsic advantage of life insurance policies as stable financial contracts ensures long-term financial certainty in a shifting tax environment. Understanding these nuances positions you to utilize life insurance strategically, maximizing your long-term financial success and stability.

Book A Strategy Call

Are you ready to take control of your finances and legacy? We offer two powerful ways to help you create lasting impact:

Financial Strategy Call – Discover how Privatized Banking, alternative investments, tax-mitigation, and cash flow strategies can accelerate your time and money freedom while improving your life today. Let us show you how to align your financial resources for maximum growth and efficiency. Book a Strategy Call with our team today.

Legacy Strategy Call – If you want to uncover your family values, mission, and vision, and create a legacy that’s about more than just money, we can guide you through the process of financial stewardship and family leadership. Save time coordinating your family’s finances while building a legacy that lasts for generations. Book a Legacy Strategy Call to learn more about how we can help.

We specialize in working with wealth creators and their families to unlock their potential and build a meaningful, multigenerational legacy.

https://www.youtube.com/watch?v=0AIoJylhZNI

The Infinite Banking Concept is a financial strategy, first codified by R. Nelson Nash, that uses high-cash-value, dividend-paying whole-life insurance so policyholders become their own bankers.

They store savings, earn guaranteed growth and tax-deferred dividends, and then can borrow against the policy's cash value.

This creates a powerful system where YOU control your capital, not Wall Street or traditional banks.

You play a big game, and you want your money to keep pace. Being in control is essential to you, and your money is no exception. You don’t have time to be strung along every year, hoping for better returns.

Instead, you want a system that works as long as you live, improving over time like a fine wine. Using your savings to mimic “the bank” with Infinite Banking fits your criteria.

Privatized Banking is a golden key that unlocks and improves every other area of your financial life.

With it, you reduce taxes, increase safety and liquidity, while earning competitive growth with built-in contractual guarantees. This elevates your ability to perform at the highest level in your life and business.

Today’s article will walk you through the building blocks and what it does for you. Then, we’ll show you this system is a strategy that you do, not just a financial product you buy.

What You'll Take Away From This Guide to IBC:

Discover how to build your own private banking system using specially designed permanent life insurance.

Learn why cash value growth gives you both competitive returns and financial security in uncertain times.

See exactly how Infinite Banking works to create simultaneous protection and wealth-building opportunities.

Find out why your life insurance coverage becomes your family's most valuable financial asset.

Understand the strategy wealthy families have used for generations to create lasting prosperity.

Table of contentsWhat Is Infinite Banking?What Is The Infinite Banking Concept?Where The Infinite Banking Concept (IBC) Fits into Your Cash Flow SystemWhy The Infinite Banking Concept Is a Better Place to Store Cash1) Provide Safety, Control, and Certainty2) Accessibility3) Emergency/Opportunity Fund4) Uninterrupted Compound Growth5) Competitive Rate of Return6) Reduce the Interest You Pay7) A Debt-Free Weapon8) Tax Benefits9) Shrinks Opportunity Cost10) Increases Protection11) Each Dollar Does More Than One Job12) Peace of Mind13) Legacy TransferIf Those Aren’t Your Goals, the Infinite Banking Concept Is Not For YouInfinite Banking: A Process That You DoWhat Makes Whole Life Insurance the Perfect Vehicle for the Infinite Banking Concept (IBC)?High Cash ValueA Place to Store CashDividend-PayingWhole Life Insurance PoliciesContractWith a Mutual CompanyWhat Makes Whole Life Insurance Cash Value Such a Great Vehicle for the Infinite Banking Concept?GrowthTax-AdvantagedNet ReturnsLong-Term Actual GrowthSafetyLiquidityYou Don’t Use up Your Cash Value, You Borrow Against ItInfinite Banking ExamplesHome RenovationBusiness EquipmentCar PurchasesInfinite Banking Disadvantages: Know the Trade-OffsUp-Front Drag on LiquidityPremium Discipline: Why You’ll WANT to Stay the CourseLong Game, Generational PayoffThe Infinite Banking Concept: The Bottom LineThe Infinite Banking Concept Puts the Power of Choice In Your HandsLearn More About R Nelson NashLearn More About the Infinite Banking ConceptFAQIs Infinite Banking life insurance or an investment strategy?How much money do I need to start Infinite Banking?Are there any risks I should be aware of?How does the cash value component keep growing when I borrow?Is the growth truly guaranteed?

What Is Infinite Banking?

What Is The Infinite Banking Concept?Infinite Banking is a process of reclaiming the banking function in your life. You become your own banker by creating your own banking system with dividend-paying whole life insurance.

The first thing that makes this concept stand head and shoulders above the sea of financial products is that it is more than a product. It’s a strategy for using a particular product — a whole life insurance policy, to be exact.

Rather than comparing it to a particular make and model of a racecar, it’s more like a particular style of racing in that car.

Before we dive into the nuts and bolts of how it works, it is important to see how it fits into the bigger picture and why it’s relevant to your life.

Where The Infinite Banking Concept (IBC) Fits into Your Cash Flow System

The Infinite Banking Concept is just one step in the greater Cash Flow System.

It’s the peanut butter to your cash flow sandwich.

Infinite banking is sandwiched between Stage 1, where you’re being more efficient and keeping more money you already make, and Stage 3, where you’re making more from your investments. It’s what makes the sandwich a sandwich, not just two slices of bread.

While it’s nestled into Stage 2, Protection, it also improves everything else around it. Infinite Banking helps you keep more of the money you make in Stage 1, amplify your cash-flowing asset strategy in Stage 3, and accelerate your Time and Money Freedom.

Why The Infinite Banking Concept Is a Better Place to Store Cash

1) Provide Safety, Control, and Certainty

Infinite Banking will solve your risk and volatility problems as a place to store your cash where it’s safe and won’t lose value. This gives you control. You don’t have to wonder if your personal bank will be there tomorrow, or what it will be worth.

2) Accessibility

Your money is liquid. That means you can access money when you need it, without barriers or penalties. You won’t have to apply for or beg to use your own money.  Instead, it’s as simple as, “It’s mine. I want to use it. Please send me a check.” And the check shows up in your mail.

3) Emergency/Opportunity Fund

Whether you want to buy an investment property, do a business expansion, buy out another business, or even cover a medical emergency or home remodel, you have access to capital. Your money isn’t segregated, imprisoned, or quarantined. You can use it for whatever you want, whenever you want to use it.

4) Uninterrupted Compound Growth

It provides an alternative financing source outside of banks, credit unions, credit cards, or paying cash for major purchases. Instead of your only payment options being limited to loans and interest payments (Spender) or paying cash and giving up the ability to earn interest (Saver), you gain a third option.

You get to earn interest, even while you’re using your cash (Steward). Life insurance policy loans allow you to become your own banker, earning compound interest without interruption, even while you put your money to work in another investment.

5) Competitive Rate of Return

Instead of the dismal .08% growth on bank savings that makes it seem worthless to keep cash, your cash grows faster. With Infinite Banking, you earn a rate much higher than other safe, liquid assets provide.

6) Reduce the Interest You Pay

Instead of paying a higher interest rate on uncollateralized loans, you get access to lower rates. How? This concept serves as the collateral that’s your ticket to lower rates and financing costs. Because you pay lower rates, you keep more of your dollars.

7) A Debt-Free Weapon

Whenever you have enough assets to pay off your loans, even if you haven’t done so, you’re not in debt. When you build an Infinite Banking system, you’re gaining a valuable asset that you could use to pay off loans. This doubles as a secret debt-free weapon.

8) Tax Benefits

Usually, the growth of your money incurs a growth of your tax bill. Instead, the growth inside is tax-advantaged. This shrinks your future tax liability and cuts unnecessary money leaks, so you keep more of your money.

9) Shrinks Opportunity Cost

When you stop losing so many dollars to interest and taxes, you don’t forfeit what those dollars could have done for you. Instead, you keep the dollar, put it to work, and maximize its potential.

10) Increases Protection

At the heart of Infinite Banking is a dividend-paying whole life insurance policy, which protects your income and ability to create wealth, whether you are here to see it through or not. It protects your human life value and your livelihood, ensuring that not even death can prevent you from building wealth.

As a private contract, it has built-in privacy because there is no public database where individuals can look up how much life insurance an insured has.

Also, because Infinite Banking can be used in business as well, it can fulfill the role of key man insurance, buy-sell agreement funding, or serve as an executive bonus.

11) Each Dollar Does More Than One Job

One of the features of The Infinite Banking Strategy is the ability to harness the power of the same dollars over and over again. This keeps your money in your personal economy.

In all other tools, once you use the dollars, they are gone forever, and you’re never able to use them again. You get to recycle the same money and use it an infinite number of times.

12) Peace of Mind

Having money you can access when you need it fences out worry and stress. This gives you an abundance mindset that helps you focus on providing value and making more money.

13) Legacy Transfer

The Infinite Banking Strategy allows for one of the most efficient methods of transferring your legacy to the next generation.  It keeps your estate intact, bypassing probate and arriving to your beneficiaries income-tax free so they won’t lose huge chunks of your estate in the process.

If Those Aren’t Your Goals, the Infinite Banking Concept Is Not For You

So, what’s the secret? Those sound like some pretty tall claims. How does Infinite Banking do all this?

Now, if these 12 benefits energize you and make every fiber of your being say, “Yes,...

Interested in finding out how to start a family bank? Today, Bruce and I talk with our friend and colleague, John Moriarty, Founder and President of e3 ConsultantsGROUP.

https://www.youtube.com/watch?v=lNuuPfHW6Jg

You’ll hear about his personal and business use of Infinite Banking, and the thinking behind a growing and evolving system of policies. John is smart, business savvy, and a leader who walks the talk of thinking differently with his finances. And it’s paying dividends – literally!

We invite you to a behind-the-scenes conversation with an entrepreneur who has been using and loving their system of starting a family bank using whole life insurance policies for the past 11 years.

You’ll find out exactly how and why this wealth creator is funding and using cash value life insurance on the regular. You’ll also witness the opportunity created by this method of cash flow management, so you can use family banking to store cash reserves. Tune in now!

Table of ContentsIn This Episode On Family Banks with Cash Value Life Insurance, You’ll Find Out:Where A Family Bank Fits into Your Cash Flow SystemFamily Bank (Behind the Scenes)Breaking into FinanceThe Stock Market AppealA Family Bank PaysInfinite WealthMindset and Money HabitsDon't Fear LoansBenefits of Starting a Family BankCommon Misconceptions and RisksAbout John MoriartyTake the Next Step with Family BankingBook A Strategy Call

In This Episode On Family Banks with Cash Value Life Insurance, You’ll Find Out:

Why people with good money habits are frustrated and feel forced into the stock market. And the solution to your problem!

Understanding the purpose of your money is more important than learning how a financial product works.

How starting a family bank optimizes your economy, gets your money doing multiple jobs, and reduces your opportunity costs.

A look at the most important component of Privatized Banking: how you want to use your money.

What this wealth creator is investing in, and why.

Where A Family Bank Fits into Your Cash Flow System

Starting a family bank strategy with Specially Designed Life Insurance Contracts (SDLIC) is just one step in the greater Cash Flow System.

It fits into Stage 2, a part of keeping and protecting your money.

We said before that Privatized Banking is like the peanut butter to your cash flow sandwich.  It’s wedged between Stage 1 – keeping more of the money you already make – and Stage 3 – increasing your cash flow from investments.

And it helps you do everything else better. Privatized Banking increases your financial efficiency, enables you to keep more of what you already make, amplifies your cash-flowing asset strategy, and accelerates your time and money freedom.

Privatized Banking is the how of keeping and protecting your money, and specially designed life insurance is the what.

Family Bank (Behind the Scenes)

As an entrepreneur with several businesses, privatized family banking strategies are a generous part of John Moriarty’s practice, both personally and business-wise. See the details of his family banking system here: https://themoneyadvantage.com/family-banking-strategy/

5:20 “I wouldn’t call myself a visionary…I’m blessed in that I find myself surrounded by really smart people in a lot of instances. And I gravitate to those types of people. What I try to do is basically garner as much knowledge from them as possible, figure out ways to give back to them, and then take what might seem like complicated processes and try to simplify them…When I see something that works, I don’t deviate from it…and if there are ways to improve that process, absolutely.”

One of the foundational missions of John’s business is to awaken the entrepreneur within and teach these foundational strategies. Creating a Family bank is a way to have your money working for you in more than one place.

Breaking into Finance

John’s pivotal shift into the world of finance happened in college. He realized that he likely wouldn’t be continuing to play baseball and set his sights elsewhere. So he began an internship in the financial sphere.

He spent the first eight years of his career path supporting other advisors, which helped him focus more on the concepts. In 2005, he worked with a business coach who introduced him to neuro-linguistic programming, which helped him to evolve his business.

He realized that there was a gap between what life insurance does and what people believe about it. The insurance industry is the only industry that doesn’t defend why it’s necessary, the way banks and other institutions do.

The Stock Market Appeal

Even people with good savings habits find that they’re not getting rewarded for those habits, and effectively get forced into the market. Maybe you’ve felt this way.

Good savings habits don’t always equate to success, but not for the reasons you’d think. If your money is in the bank, you can make maybe 1% on that money (at today’s rates), which essentially forces you to choose. Do you continue to pursue an account that does not help your principal to grow? Or do you increase your risk by entering the market?

Many families choose to enter the stock market because it seems like the only option to accumulate wealth.

Then, there’s the lesser-known way of starting a family bank, which will reward your good habits. If you don’t like the way things are today, you have the power to ditch the status quo.

A Family Bank Pays

A family bank is a key piece of financing the life you want, personally and in business.

John has held life insurance for a long time, yet his first experience truly utilizing his cash value life insurance policy (what he refers to as specially designed) was in 2009. At this time, he was becoming more familiar with the Nelson Nash Institute and the Infinite Banking Concept. The recession raised a number of questions for the general public, so John implemented the strategy himself so he could recommend it with confidence in the future.

He went all in, building and designing his own policies. He knew how the policies would be funded and what the cash value would be used for.

The most important piece of advice John gives when creating a family bank is to examine the purpose of your money. What will it do for you, and what do you want from it? If the purpose of your money and the account you’re using to store it aren’t in alignment, you’ll have a harder time getting what you want.

Infinite Wealth

When you first create a family bank strategy, there’s a finite amount of money that can run through it. Yet if you continue to expand your family bank while allowing money to flow in and out, you can create infinite wealth.

You have three resources—time, talent, and capital. If you think of your life in those terms, you will run your systems more efficiently. For safe money, you have two options: a commercial bank and your family bank. The latter provides liquidity while continuing to earn interest and expand your capacity.

When you’re building your family bank, John lists two priorities: working with someone who has your best interests at heart and someone who can answer your questions. Insurance isn’t a magic solution, yet it can make you far more efficient.

Mindset and Money Habits

Interest rates and taxes are just numbers until you relate them to your personal economy or your business economy. Too often, these concepts are broadened, which doesn’t help you connect to them in authentic ways.

If you start from these basic concepts, it becomes easier to implement high-level, flexible strategies like creating a family bank. This is because the key component is management—something you work with alongside your advisor. It’s not a “set-it-and-forget-it” strategy.

A family bank is something that helps you live your life better. It’s meant to be used, not shelved.

Don't Fear Loans

If you have your money working for you, you can make choices about your money. Personal and business loans are both available, without question, in a family bank. This is an advantage that isn’t often afforded through bank financing. Loans, especially against your policy, are not something to fear.

51:00 “The fact that I have an outstanding loan balance… [is] something I can calculate and keep an eye on. But what I also know is, if…I just paid down the principal, and I don’t even touch the interest, I still know what that policy is going to generate as a return, net of the interest cost…I think it’ll end up being about 3%.The reality is, I know that all of the different investments I made, if even some of those turn out the way I expect, the actual creation of wealth vs. what I’ve got in my policies…will be 5- 10x that number. So, the reality is I’m not concerned about that interest cost because I know what I’m doing with my money.”

53:05 “For a client, the idea is, if you can see the potential of what this strategy can create for you…The idea is to figure out how you want to be utilizing the money, and then work with your advisors to structure that system so that it creates as much opportunity as possible for you.”

Benefits of Starting a Family Bank

Remember, learning how to start a family bank gives you far more than a place to store money. It’s about creating a secure financial system that serves your family for generations.

One major advantage is tax efficiency. Cash value growth inside a properly structured whole life policy grows tax-deferred, and policy loans are typically tax-free when used wisely.

Asset protection is another key benefit. In many states, the cash value of your policies is shielded from creditors, providing a layer of security that traditional savings accounts can’t match.

Finally, internal family financing allows you to borrow from your system instead of relying on banks or lenders. This keeps your money working for you while empowering your famil

Do you want to build a family banking system that will provide capital to you and future generations? Come see behind the scenes as we talk about our Marshall Family Bank in real-time.

https://www.youtube.com/watch?v=0buUbqGs5QQ

Today, we discuss why we added another whole life insurance policy, how our cash value is growing, and our vision for using our family banking system as the foundation to grow generational wealth.

So, if you want to see exactly how and why you can grow a family bank strategy to secure capital reserves for your family for generations to come… tune in now!

Table of contentsWhy We Use Life Insurance for Our Private Family Banking SystemIdentify Your PrioritiesSafetyLiquidityGrowthThe Evolution of Our Family BankAdding a New Policy to the Private Family Banking SystemHow a Family Banking System Works in Real LifeWhy Get a Second Life Insurance Policy?Myths & Misconceptions About Private Family BankingTake the Next StepBook A Strategy Call

Why We Use Life Insurance for Our Private Family Banking System

Whole life insurance has the benefit of being a protection asset, as well as a place to store wealth. Just like you would tuck money in the bank, so too can you store money in a specially designed whole life insurance policy. The added benefit is, as Bruce states:

[4:45] “You’re storing [money] for a reason or purpose. And if you want to try to maximize your wealth, what you really are looking for is what to do to keep that money in motion.”

Whole life insurance does a few things for your savings. It keeps your money safe in a way that banks can’t. It allows you to grow your money with interest and dividends, and it provides you with the opportunity to leverage your money. The leverage piece is important because it gives you access to capital while being able to benefit from uninterrupted compound growth.

Ultimately, we’ve chosen whole life insurance because it helps us align our money with our family’s purpose and mission.

Identify Your Priorities

With wealth-building and wealth preservation techniques, there comes a time when you must identify what is most important to you. The “big three” options are generally safety, liquidity, and growth. While you may be able to have all three components working for you, you only get to maximize two of the three. Choosing which one or two of these components you’re going to prioritize and maximize is critical.

Safety

Safety refers to how secure your money is. How much are you putting at risk? Is a lot of your money tied up in risky or volatile assets? The safety of your money may also depend on what debt you have and how well-protected your money is from creditors.

Likewise, you can make your money safer with things like umbrella and liability insurance, to protect yourself from lawsuits and other things that erode your wealth.

For safety, there’s often a cost trade-off. Insurance, for example, can protect your money from prying eyes, lawsuits, and liabilities—but it costs money. Similarly, you may feel that by not investing in riskier assets, you’re not maximizing your dollars.

Liquidity

Liquidity is how easily you can access your money. If you tie your money up in long-term investments and projects, it’s probably not very liquid. While you may not need all of your cash to be liquid, it’s important for many families to have an easy-to-access pool of money for emergencies and opportunities.

Growth

Growth is what most people think they want, which leads them to invest unwisely. Prioritizing growth has the potential to skyrocket your wealth. But depending on how you want to achieve your growth, it can be risky. And how much is growth worth if you lose it all?

Similarly, you may think it’s a good idea to invest in or acquire lots of low-risk assets. But if they aren’t liquid, how much are they adding to your quality of life?

While you may not maximize all three of the above components to wealth, you can have a pretty solid balance. Whole life insurance is one of those assets that scores pretty well in all three categories. Your insurance policy is protected from creditors and the IRS (as well as death), and the cash value is a liquid pool of money.

And while the growth on a whole life insurance policy alone won’t make you rich, it does more to keep pace with inflation than the banks, and can be leveraged for investments that grow.

[14:24] “We are willing to sacrifice a high growth for the maximum amount of safety and liquidity. And the reason for that is we are confident… we can earn a return in two places simultaneously, and that we can earn a much better return externally, outside of our policy.”

The Evolution of Our Family Bank

We began implementing the Infinite Banking Concept in 2012 with a policy on Lucas. The policy was with a mutual, dividend-paying company, and had an annual premium of about $10k.

This policy served us well for a long time. We took out many policy loans over the course of having it, which we repaid with the cash flow from our business.

We had a strong history of paying premiums, though sometimes we only paid the base premium, sometimes the full premium with PUAs, and other times, it was somewhere in between.

After a while, we did a 1035 exchange to roll this policy into a new policy. This allowed us to work with a new company and begin a policy with a $20k annual premium.

You can learn more about our 1035 exchange in our post, “The Marshall Family Bank: Why We Started a New Life Insurance Policy.”

Adding a New Policy to the Private Family Banking System

More recently, we added another policy to our family banking system portfolio. The purpose of our family bank strategy is to increase our net investible income, safeguard our money, and create a legacy that supports future generations of our family. Starting a new policy to further increase our cash value (our investible dollars) made sense with that vision.

So, we opened a policy on me with $30k of annual premium, as well as a full $2.1 million of term insurance to get up to my full Human Life Value.

When designing this policy, we also decided that we wanted to be able to fund it for as long as possible, if we wanted to. It fits into our vision for our money and our family bank strategy. For some people, it may be more important to fund it for a certain time period only.

[33:03] “We said if we want to continue funding this, how do we guarantee that we have the ability to put in as much ongoing premium for as long as possible? And really, that’s because we tremendously see the value of not only increasing a death benefit through this growth, but also increasing our cash value and using this policy. The longer you have a policy in force, the more benefit you’re going to have from it.”

How a Family Banking System Works in Real Life

But exactly what is private family banking in real-world terms? In short, it's a carefully designed strategy using a cash-value whole life insurance policy to create an internal lending system within your family.

Imagine you're ready to set up your private family banking system. Let's say you set up a policy with a $20,000 annual premium, which accumulates significant cash value over ten years.

Your daughter heads to college, and your son has a new business idea. Instead of external lenders, they borrow from your family banking system.

Your daughter’s tuition and your son's startup capital are funded through policy loans. Repayments, including interest, recycle money within your family, enhancing your collective prosperity and teaching responsible stewardship firsthand.

Why Get a Second Life Insurance Policy?

There are many reasons that getting a second life insurance policy made sense for our family and our private family banking system. When we first bought the policy for Lucas, he was the primary income earner. It made sense to have something in place to replace his income if needed.

As our income has increased over the years, we knew we wanted another policy, so it made sense to take a whole life policy out on me, as well.

In addition to the protection aspect, this also allows us to save at least 30% of our income. As our income continues to increase, we intend to continue increasing our savings.

This helps us create a bigger and bigger pool of wealth with which to invest, spend on our family, and ultimately help ensure the success of future generations.

Myths & Misconceptions About Private Family Banking

Many people initially misunderstand private family banking, with one of the most common questions being, "What is private family banking—is it about secrecy or tax evasion?" 

Absolutely not. It’s a fully transparent, legal, and structured family bank strategy designed to build generational wealth through a cash-value whole life insurance policy.

Another myth is that life insurance isn’t suitable for banking purposes. In truth, a properly structured policy provides liquidity, safety, and consistent growth, perfectly positioning it as a powerful tool within your family banking system.

Take the Next Step

Looking back, we may not have done things much differently. However, we do wish we had gotten an earlier start. If we had started a policy just five years earlier than we did, we could be in a much different spot. Yet hindsight is 20/20, and we’re still grateful that we got started when we did.

If you’re thinking about utilizing the family banking strategy, start as soon as you can. It’s an incredible journey, and one you’ll be glad you started sooner rather than later. While it’s important to figure out what you want from your policy and your system, don’t let the details weigh you down too much.

Ultimately, something is still better than nothing, and whole life insurance is a flexible asset. You will have plenty of opportunities to buy more insurance and refine your private family bank

When we first started talking about estate planning with life insurance, it was because we saw a massive disconnect in how families were thinking about their wealth. Not just the numbers. But the purpose behind it.

https://www.youtube.com/live/sqVXY199ygQ

Bruce and I were in the middle of one of our deeper conversations—talking through how most people think life insurance is just a “check the box” kind of thing. They get the policy, set up a will or trust, and assume their family is covered.

But what they haven’t thought through is how that money will be used. What it’s meant to fund. What kind of mindset or framework their children need to carry it forward well.

Bruce said it best in the episode:

“You’ve got a bunch of people out there who are trying to do the right thing—but they’re buying the wrong tool for the job. Or they’re leaving out the whole reason they got it in the first place: to provide for their family in a way that actually works.”

And that’s what this article is about.

This isn’t just about life insurance. It’s about using the right kind of policy inside an estate plan that’s built for generations, not just legal compliance. It’s about creating a strategy that protects your wealth and prepares your children. It’s about designing a legacy—on purpose.

What Is Estate Planning with Life Insurance—and Why Does It Matter?Why Estate Planning with Life Insurance Creates Immediate LiquidityWhole Life Insurance vs. Universal Life: Why Guarantees MatterUsing Life Insurance to Offset Estate Taxes and Preserve WealthPassing on More Than Money: Embedding Stewardship Into the PlanDesigning Your Policy Without Triggering a MECWhen Estate Planning with Life Insurance Is Part of a Bigger VisionWhat the 2026 Estate Tax Sunset Means for Your FamilyWhat Is an ILIT—and Why You Might Need OneQuick-Start Checklist: How to Begin Estate Planning with Life InsuranceFinal Thoughts: Don’t Let the Opportunity Slip AwayWant Help Designing Your Legacy Strategy?Book A Strategy Call

What Is Estate Planning with Life Insurance—and Why Does It Matter?

Estate planning with life insurance is one of the most overlooked but powerful ways to ensure your family is protected, your assets are preserved, and your values are carried forward with intention.

It's not just about paying estate taxes or transferring wealth efficiently.

Done right, it gives your heirs time, options, and guidance. It replaces financial panic with peace of mind. And it makes sure that what you've built doesn't just last—it multiplies.

If you have real estate, a business, investments, or a vision for generational wealth, this is a conversation you cannot afford to postpone.

Why Estate Planning with Life Insurance Creates Immediate Liquidity

Here’s what most people don’t realize:

When you pass away, even if your estate is “in order,” your heirs may be stuck needing to pay estate taxes within nine months.

If your wealth is tied up in real estate, private equity, or business holdings, your family might be forced to sell those assets at a loss—just to pay the bill.

That’s where life insurance for estate taxes becomes mission-critical.

With a guaranteed death benefit, whole life insurance creates instant liquidity—giving your family the cash they need to cover expenses, hold onto appreciated assets, and stay out of financial distress.

In the episode, Bruce shared,

“The beauty of this strategy is that it gives you certainty. And certainty is a gift—especially when the world is reeling from loss.”

This is what makes estate planning with life insurance such a foundational part of a healthy, functional legacy plan.

Whole Life Insurance vs. Universal Life: Why Guarantees Matter

Not all life insurance is built to withstand the test of time.

Bruce and I have reviewed countless policies that looked good on paper—but were designed with the wrong product.

Universal Life policies may seem attractive because of their flexibility, but they come with hidden risks. Their performance is tied to interest rates or market returns, and if those don’t pan out, the premiums can rise unexpectedly—and policies can lapse.

Whole life insurance, on the other hand, offers:

Guaranteed level premiums

Guaranteed cash value growth

A guaranteed death benefit, in force for your entire life

When your legacy is on the line, guarantees aren’t a luxury—they’re a necessity.

That’s why we use specially designed whole life policies to build the financial core of a legacy plan that actually works.

Using Life Insurance to Offset Estate Taxes and Preserve Wealth

With the upcoming estate tax exemption sunset in 2026, many families will find themselves with taxable estates overnight.

This is especially true for those who own appreciating assets—businesses, real estate portfolios, investment properties.

By incorporating estate planning with life insurance and positioning the policy outside your taxable estate (often through an Irrevocable Life Insurance Trust, or ILIT), you create a wall of protection around your assets.

This keeps more of your wealth intact and allows your heirs to inherit what you intended, rather than losing 40% or more to estate taxes.

And because life insurance pays out quickly and privately, it bypasses probate entirely—another strategic win.

Passing on More Than Money: Embedding Stewardship Into the Plan

Here’s the soul of all of this.

Provision alone isn’t enough.

Our mission at Seven Generations Legacy® is to help families pass on a legacy of wisdom, not just wealth. That means coupling your financial plan with written guidance—your voice, your values, your vision.

That’s where tools like the Memorandum of Trust and Love Letters to your children come into play.

They allow you to speak into your children’s future. To prepare them to handle wealth with wisdom. To build families that stay together, even after you're gone.

Because the greatest danger in wealth transfer isn’t taxes.

It’s entitlement.

Designing Your Policy Without Triggering a MEC

Let’s get technical for a minute—because this mistake could cost your heirs everything.

If your life insurance policy is overfunded too quickly, it can become a Modified Endowment Contract (MEC). And that changes everything:

Tax-free loans become taxable

Withdrawals may be penalized

Your policy loses flexibility

To avoid this, we walk our clients through the seven-pay test and custom-design policies that stay compliant while maximizing cash value and long-term impact.

It’s not just about buying a policy. It’s about buying the right policy, structured the right way, for the right purpose.

When Estate Planning with Life Insurance Is Part of a Bigger Vision

This is more than a tactical financial strategy.

When you build an estate plan rooted in whole life insurance, you’re creating a financial engine for your legacy.

It provides stability during the storm

It creates opportunity where others feel scarcity

It lets your children stand on your shoulders, rather than starting from scratch

This is about a multi-generational family enterprise.

It’s not just about wealth preservation. It’s about wealth creation, with guidance.

And it all begins with one decision: to act intentionally now.

What the 2026 Estate Tax Sunset Means for Your Family

Right now, the estate tax exemption is historically high—just under $13 million per person or $26 million per married couple. But unless Congress takes action, that exemption will sunset on January 1, 2026, cutting it in half.

What does that mean?

It means families with estates over approximately $6.5 million per person will suddenly find themselves exposed to a 40% federal estate tax.

And this isn’t just a “billionaire problem.” For entrepreneurs, investors, or business owners with appreciated real estate or growing portfolios, that threshold is easier to cross than ever.

Without proper planning, your family could lose millions.

This is why estate planning with life insurance isn’t optional. It's urgent. If you want to keep what you’ve built in the family, planning for liquidity now is the most strategic way to do that.

What Is an ILIT—and Why You Might Need One

An Irrevocable Life Insurance Trust (ILIT) can be a great legal tool for reducing your estate tax liability.

Here’s how it works:

You create a trust that legally owns your life insurance policy

You fund the trust with annual gifts (often within the IRS gift tax exclusion)

When you pass away, the death benefit is paid to the trust, not your personal estate

Because you don’t technically “own” the policy, it stays outside your estate and is not subject to estate tax

The trustee can use the funds to pay estate taxes, support beneficiaries, or manage assets according to your written wishes

You can write in stipulations, such as when your children can access funds, how much they receive, and under what conditions. Paired with a Memorandum of Trust, this gives your family not just provision—but structure.

And that’s what good stewardship looks like.

Quick-Start Checklist: How to Begin Estate Planning with Life Insurance

If you’re ready to take action:

✅ Begin Writing Your Family Guidance

Articulate your values, mission, vision, and purpose for wealth

Write Love Letters to accompany your legal documents

Draft a Memorandum of Trust

✅ Work With a Legacy Coach Who Gets It

Partner with someone who understands faith, family, finance, and long-term stewardship—not just tax law

✅ Review Your Current Estate Plan

Do you have a will, trust, healthcare directive, and power of attorney in place?

When was the last time you updated it?

✅ Audit Your Existing Life Insurance

Is it term or permanent?

What’s the death benefit?

Is the policy guaranteed to last your lifetime?

...

Bruce Wehner discusses the primary components of infinite banking policy design: base premium, paid-up additions riders, and term riders. Following the principles laid out by Nelson Nash in Becoming Your Own Banker, we review the concepts for designing a whole life insurance policy for the Infinite Banking Concept.

https://www.youtube.com/watch?v=S54uejv8g-Q

When Bruce’s father took out a whole life insurance policy on him as a newborn, little did he know that it would be the cornerstone of Bruce’s financial planning in the future.

From leveraging that policy for a home down payment to understanding the value of banking, I’ve followed the policy design guidelines of the Nelson Nash Institute to navigate the complex world of finance.

Join us in our exploration of whole life insurance and the myriad of benefits it offers not just from a security standpoint, but also as a tool for capital growth and liquidity.

In this episode, we touch upon:

The long-term thinking involved in whole life insurance policy design. 

The three building blocks that make up a solid policy for IBC  - and how to mix them just right for your situation

The nitty-gritty of policy design, discussing why a convertible term policy can be a boon for your financial portfolio.

We illuminate the often misunderstood relationship between banking and insurance that most financial advisors never talk about

We examine the financial intricacies of policy design, emphasizing the importance of understanding the connection between a policy’s base death benefit and premium. 

We share insights into how dividends are calculated and how factors such as a low-interest-rate environment can impact these projections.

Wrapping up, we stress on the importance of affording the premiums and how it affects the potential dividends one can receive.

So, tune in, and let’s debunk the myths surrounding whole life insurance policy design while learning how to make the most of it.

Whole Life Insurance is Not an InvestmentThe 3 Components of Infinite Banking Policy DesignWhat is Base?What are PUAs?Infinite Banking Policy Design and Base/PUA SplitInfinite Banking Policy ExampleThe Role of Term InsuranceThe Balance of Infinite Banking Policy DesignLiquidity and Thinking Long-TermOther Facets of Infinite Banking Policy DesignBecoming Your Own Banker: The Power of Purposeful Policy DesignFrequently Asked Questions About Infinite Banking Policy DesignHow long until my cash value exceeds my total premiums paid?Is an IBC policy only for wealthy individuals?Can I add more money to my policy later?Book A Strategy Call

Whole Life Insurance is Not an Investment

Whole life insurance is a unique place to store cash because it’s safe and it grows. This growth, however, cannot be compared to investments because it’s not an investment. Instead, it should be compared to a bank, which is meant to be “safe” growth. This comparison reveals that cash value in a policy grows at a more substantial rate and is also tax-advantaged.

Cash value is also fairly liquid, though it takes some time for your cash value to catch up to the contributions you make. In other words, there are some limitations on the liquidity early on.

However, this is temporary and is more than worth the trade-off of safe growth — safe from the IRS, creditors, taxation, loss, theft, and death. It’s an iron-clad way to store your cash that you can’t get anywhere else.

The 3 Components of Infinite Banking Policy Design

In order to get the best results from your whole life insurance policy, you want one that is specifically designed for IBC. This means that you want to work with an insurance agent who is familiar with your financial objectives and can help you choose the ideal policy design.

Policy design can be complex, yet the three main components of a policy are base premium, PUA riders, and term riders.

What is Base?

Base refers to the part of your premium that goes to the main (or base) portion of the death benefit you’re buying. This is the foundation you build the rest of your policy upon, such as PUAs and riders.

When you have a high base, you’re buying more death benefit upfront and paying for it over the course of your premiums.

This means you’ll have slower cash value growth in the beginning because you’re paying over time, and therefore, there are more costs upfront for the company to consider.

After all, the risk is higher to them in the beginning when you’ve only paid a few premiums because they have to pay a death benefit no matter what. Even if you’ve only paid a single premium.

What are PUAs?

PUA stands for paid-up addition, and when you add PUAs to your policy, you’re buying small increments of fully paid-up death benefit. This can accelerate your early cash value growth because you’re buying a small amount of death benefit in one go.

All the cost is accounted for, and it’s low risk to the company since it’s paid-up, so more of it contributes to cash value. It also has the benefit of increasing your death benefit slightly.

Infinite Banking Policy Design and Base/PUA Split

You might hear advisors talking about different “splits,” like a 40/60, for example. This means the composition of your premium is 40% base and 60% PUA. If you’re prioritizing death benefit, you might desire a higher base. If you’re prioritizing early cash value (liquidity), you might desire a higher PUA.

Infinite Banking Policy Example

In the podcast, the example we share is of a $100,000 premium. $40,000 of the premium is going to the base and buys a little over $663,000 of death benefit. 

There’s a $2,000 (and change) term rider, which buys an additional $575,000 of temporary death benefit for a 20-year term. And then finally, there’s a little over $57,000 of PUA. This is about a 40/60 split.

This infinite banking policy example illustrates how well-structured policies can provide powerful short- and long-term benefits: access to capital now, uninterrupted compound growth, and a growing death benefit for legacy.

Many people often choose to have several policies over their lifetime, some with the purpose of increasing the death benefit, and some with the purpose of capitalizing. 

Ultimately, what you choose now will depend on your goals. And if your goals change, you can always buy additional insurance. You’ll likely want to, as your income increases. 

[14:30] “I tell people all the time: Do not overthink this.”

The Role of Term Insurance

If the cost of the term insurance seems high to you, that’s because it is. The reason it’s higher within the policy is because it’s convertible term insurance. This means that the policyholder can convert that temporary insurance into whole life insurance over the course of the contract.

He can do this all at once, a little at a time, or even a partial conversion. And the benefit is that he never has to re-qualify for this insurance. So if his health takes a turn at any point, and he can no longer purchase a brand new policy, he still has the option to convert that term insurance while it’s active.

Adding term insurance can be an invaluable piece of policy design for this reason, especially if you want to maximize your death benefit, and can only afford so much premium. This enables him to get more coverage from day one, with the option to convert as his income increases, too.

The Balance of Infinite Banking Policy Design

There are many components Infinite Banking policy design, and yet ultimately, there’s balance in whatever you choose. 

[31:18] “When you pull one lever in an actuarial insurance product, another lever moves.”

In other words, everything you do is a trade-off. When you increase the risk, there’s a trade-off in cost, and vice versa. When you choose to accelerate early cash value, there’s a trade-off in how much death benefit you get. 

There’s no option you can choose that’s inherently better or worse, there are just options with different implications. 

A common criticism of whole life insurance is that the higher the base premium, the higher the agent commission… so that must be the only reason agents recommend it.

However, if a young family has a need for more guaranteed death benefit, then a higher base is the way to go. Additionally, to balance the lack of early liquidity, the part of your cash value composed of base actually receives a higher dividend. We’ll say it again: Everything is a trade-off, and no option is inherently “bad.”

Liquidity and Thinking Long-Term

The problem many people have with whole life insurance is the lack of early liquidity. When you put in $100,000 the first year, only about $55,000 to $65,000 of that is available to use (with $55k being the guaranteed minimum cash value).

However, if you can be patient and consider the long-term benefits of saving and paying premiums, it pays off.

What you’ll see is that in year 5 of this policyholder’s contract, he pays his $100k premium, while his cash value is projected to increase by $103k. So in only 5 years, his policy is increasing by more than he’s contributing each year.

That said, at this point, he hasn’t broken even. In year 5, his total cash value is $446k and he’s contributed $500k total. Yet, in year 9 his cash value hits that glorious break-even number.

He’ll have contributed $900k, while his total cash value is $920k. From this point on, his cash value will always be more than what he’s contributed (barring a withdrawal). With patience and a mind for long-term strategies, you’ll see the payoff.

Other Facets of Infinite Banking Policy Design

Another responsibility of the advisor is to design a policy you can afford. At a minimum, it’s important to ensure that you can pay the base premium, especially in lean years. PUAs, after all, are optional.

Even so, it’s also critical for an advisor to design a policy with affordable PUAs, too....