Bank on Yourself: Become Your Own Source of Financing
Take Control of Your Wealth. Stop Relying on Traditional Banks. Discover how Canadians are using specially designed life insurance policies to finance their own lives, businesses, and investments while their wealth continues to grow.
What is the concept: "Bank on Yourself"?
"Bank on Yourself" is a proven financial strategy that shifts the power away from traditional financial institutions and puts it directly into your hands. At its core, this concept uses a specially designed, dividend-paying Whole Life Insurance policy to create a private reserve of liquid capital.
Here is how it works: When you pay premiums into this type of policy, a portion goes toward building a guaranteed, tax-advantaged "cash value." This cash value is money you have access to while you are living. Instead of applying for a bank loan or draining your savings to make a major purchase, you can borrow against the cash value of your policy.
The most powerful part? Because you are borrowing against the policy rather than withdrawing from it, your cash value continues to grow and compound as if you never touched the money. You effectively become your own banker, capturing the interest you would normally pay to an outside lender.
How Can Canadians Use It?
For Canadians, this strategy is incredibly efficient due to the tax-advantaged nature of life insurance under the Canada Revenue Agency (CRA) guidelines. The cash value inside your policy grows tax-free, protecting your wealth from annual taxation.
Here are a few common ways our Canadian clients utilize the Bank on Yourself strategy: