Bank On Whole Life for Business
Seed To Legacy Financial Group specializes in strategic wealth planning for business owners and corporations, using advanced whole life and legacy-building concepts to help you achieve long-term financial control and strengthen your company’s future.
What is Bank On Whole Life for Business?
Corporate-owned participating whole life insurance policies, when structured using one of our Bank On Whole LifeTM concepts, provide your business with insurance protection, a tax-free death benefit, and a cash value that is intended to become a supercharged asset that your business owns and controls; one that enables you to build equity year over year and access as a source of business capital through guaranteed contractual returns and potential dividends.
Consider corporate-owned participation whole life insurance as the savings vehicle, and our Bank On Whole LifeTM principles as the turbocharged fuel injector that accelerates the tactics required to increase the policy’s cash value over time. The cash value of the equity in your corporate-owned participating whole life insurance policy can be used by your company as collateral for other business financing sources, to pay business expenses, or to grow. Your business might also lessen its tax obligations by utilizing this equity.
By offsetting tax obligations upon death, corporate-owned participation whole life insurance helps you avoid the double-tax trap and protect your assets for your family and business. The equity in your corporate-owned whole life insurance policy can also be used by business owners to set up important personal protection or finance buy-sell agreements.
You may also receive a tax-free retirement income in the future from a corporate-owned participation whole life policy. Corporate-owned participating whole life has long been recognized for its advantages in estate planning, in addition to its utility in portfolio balance and retirement planning.
The corporate-owned participating whole life policy must be structured by a licensed life insurance agent with specialized training and credentials in these kinds of concepts, such as Bank On Yourself® and the Infinite Banking Concept®, because our Bank On Whole Life concepts are distinct and complex.
Our Bank On Whole Life Concepts
Our Bank On Whole Life Concepts
The Bank On Yourself® idea and the Bank On Yourself® Professional Training program are only offered in Canada by SET Financial Solutions, a key partner of MacDev Financial. Our certified life insurance agents have finished the demanding training to become Bank On Yourself® Professionals, making them the top authorities on Bank On Yourself in Canada.
A concept “focused on helping people achieve their financial goals and objectives using a little-known variation of a whole life insurance policy” called as participation or dividend-paying whole life insurance, Bank On Yourself® (BOY) was created by Pamela Yellen in 2002.
With a 160-year track record, this tried-and-true financial method allows you to increase your money more quickly, safely, and predictably—even when stocks, real estate, and other investments plummet due to erratic market conditions. In her New York Times best-selling books, Bank On Yourself and The Bank On Yourself Revolution, Yellen describes the advantages of the Bank On Yourself® approach.
Infinite Banking Concept®
The Infinite Banking Concept (IBC) was developed by Nelson Nash. He is also the founder of the Nelson Nash Institute and author of Becoming Your Own Banker—the first edition published over 20 years ago! The mission of the Nelson Nash Institute is “to educate and inspire individuals to take control of their financial lives by reclaiming the bank functions from others.” Similar to the Bank On Yourself® concept, the Infinite Banking Concept® uses participating (also known as dividend-paying) whole life insurance as the ultimate savings vehicle.
Wealth Factory®
Garret Gunderson, a lifelong entrepreneur, senior wealth architect, keynote speaker, and New York Times best-selling author of books like Killing Sacred Cows: Overcoming Financial Myths That Are Destroying Your Prosperity and, more recently, Budgeting Sucks, founded Wealth Factory, a comprehensive personal financial education and implementation program specifically designed for entrepreneurs, small business owners, and healthcare professionals.
With “a mission to manufacture economic dependence for 1 million entrepreneurs,” Wealth Factory bridges the gap by assisting small business owners and entrepreneurs in managing the complexity of their finances in a stable, protective manner through an integrated, solution-based approach that focuses on the following fundamental elements that are essential to any business’s successful financial management: cash flow, taxes, estate planning, insurance, and investments.
Wealth Factory also teaches business owners how to use a permanent life insurance policy with a cash value as the lending vehicle and the Cash Flow Banking system to establish lifetime security based on a guaranteed rate of return. You can borrow money from your policy’s cash value as a business owner, just like you could with a bank. The advantage of Cash Flow Banking, in contrast to traditional finance, is the potential to recoup the interest you may otherwise pay a bank. Even if you take out a loan, the policy’s balance stays the same and will keep increasing.
How Does Bank On Whole Life Work for Business Work?
The cash value of a corporate-owned participating whole life insurance policy, when properly structured using one of our Bank On Whole LifeTM concepts, is akin to the equity you accumulate in a home or real estate property when you make mortgage payments.
A home can be used as collateral for a loan known as a HELOC (Home Equity Line of Credit) if it has a specific value. Your home equity, or the value of the percentage of your mortgage that has been paid off, increases when you make mortgage payments. Your home’s value is unaffected, but you are using the equity as collateral for the HELOC.
Permanent insurance that also generates equity with what is known as a cash value is a corporate-owned participating whole life policy. We frequently compare it to homeownership since this cash worth is likewise seen as an asset your business owns that can be used as security to acquire funding from a bank or lending institution. Similar to the HELOC situation, the cash value of your corporate-owned participation whole life insurance policy remains unchanged when you take out a loan because you are using the equity in the policy’s cash value as collateral.
One important distinction between a Bank On Whole LifeTM structured corporate-owned participating whole life insurance policy and a HELOC is that, as a company or business owner, you can access your funds without going through financials. You just ask your advisor for the policy loan, and you get the money in a matter of days.
The time-proven potential to produce dividends is another significant distinction with this kind of policy. Remarkably, these kinds of policies have been paying out dividends in North America for more than 160 years. The policy is set up to use these dividends to buy additional insurance, or “paid-up additions,” which quicken the growth of your company policy’s cash value and death benefit.
Benefits of Bank On Whole Life for Business
Protection
A special alternative asset class, corporate-owned participation whole life insurance is a comprehensive financial solution that shields your business and its interests against unforeseen hazards. The cash value of a corporate-owned participating whole life insurance policy can be used to finance buy-sell agreements and key-person protection when it is structured using one of our Bank On WholeTM concepts. It can also give your company a resource to optimize funds to manage liabilities
Cash Flow & Business Financing
The cash value of a corporate-owned participating whole life policy, when structured using one of our Bank On Whole LifeTM concepts, gives your company or corporation easily available, liquid capital that increases equity annually through possible dividend earnings and guaranteed returns. This equity gives your company easily accessible funds that you can employ for business finance.
Tax Advantages
Unlike other savings and investment products, the cash value of a corporate-owned participating whole life insurance policy is not taxed as a capital gain when it is structured utilizing one of our Bank On Whole LifeTM concepts. Within the bounds specified by the Income Tax Act and Regulations, the policy’s cash value increases on a tax-preferred basis. As a business owner, this gives you a tax-sheltered way to hold retained earnings while maintaining uninterrupted capital growth.
Retirement
The cash value of a corporate-owned participating whole life policy can be utilized to pay for business expenses during your working years if it is structured utilizing one of our Bank On Whole LifeTM concepts. As long as the cash value in your corporation policy is increasing, it can be used as funding or an additional source of tax-free retirement income when you eventually quit working, according to current income tax rules.
Corporate Estate Transfer
By reallocating corporate surplus from taxable investments into a corporate-owned participating whole life insurance policy structured with one of our Bank On Whole LifeTM concepts, the Corporate Estate Transfer can help you lessen the impact of the “double tax trap” of transferring your shares from your corporation to your estate if you are the owner of a corporation or a majority shareholder in a Canadian corporation with taxable investments.
Asset Strategy
Corporate-owned participation whole life insurance becomes a supercharged asset when structured utilizing one of our Bank On Whole LifeTM concepts. It gives your company easily accessible, liquid cash that increases equity year after year through assured returns and possible dividend profits. You can utilize the cash value of your corporate-owned participating whole life insurance policy as collateral for other sources of business financing, fund business expenses, or grow your company. Money from other taxable investments can be reallocated into your corporate-owned participation whole life insurance policy as a tax-advantageous asset in your company’s overall financial strategy.