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  • Writer's pictureCasey Dahl

Want to become your own bank?

Updated: Apr 4





 So you wanna become your own bank like you see all of these people on TikTok talking about, but you don't know how? Well, I'm gonna break it down for you right now. To become your own bank, you need a life insurance policy. You do have to get approved for a life insurance policy to get a life insurance policy.


So, you purchase a life insurance policy that was set up by an agent who specializes in cash value life insurance. They set it up with a minimum death benefit for max cash accumulation, and you start funding the policy on a monthly or annual basis.


You've accumulated a cash value. It could have been as quick as year one. It could be year five, it could be year 10. But, you've accumulated a cash value and you want to borrow money from it. So, index universal life insurance policies have what's called a policy loan provision. The life insurance company says, "Hey, policy owner, you are good to borrow money from your cash value because you bought this death benefit that's hanging over your head."


You request a loan. The interest on the loan can be a fixed 2.75% (if you're working with me), you pull out the loan and your policy is earning 6%, meaning that you are not netting a negative interest rate when you borrow. There is no need to immediately pay the loan back.


So you take out your loan, you use it. Hopefully you do something with the money that makes you more money, like you put it into an investment. You realize a gain, you put the money back, then you can pull the loan back out. Being your own bank means that you take a loan out and you pay it back, and then you take another loan out, and you pay it back and you keep cycling the funds.


You're able to have them pay for your life insurance policy and also buy a car or fund your business. We call this uninterrupted compound interest because you still earn money on all of the money that you've contributed into the account and the money that you've earned. If you need to learn more, you know what to do!



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