Welcome to the fifth and final blog in our comprehensive series about the Infinite Banking Concept.

Throughout these four previous blogs we’ve talked about what the concept is and who it’s for.

We also went over the many benefits and the Canadian rules versus the American rules.

We then went over the policy loans and how they work, and what the adjusted cost basis is.

And last time we spoke about why people view Infinite Banking as a scam.

This episode is all about using the Infinite Banking Concept to leave a legacy.

The Need for Life Insurance

We tell everyone that they shouldn’t set this up unless they want and need life insurance.

If you have someone you want to leave your wealth behind for then you have a need right there.

Because, if you didn’t know, when you die there is a final income tax on your goods and your next of kin will have to pay that, whether that’s your wife, your husband or your children.

You want to make sure they are left in a position to cover that and to make up for any lost wages to the household.

This all gets passed down tax-free and privately to the beneficiaries of your choice.

Leaving a legacy for your kids

Your children are often the greatest legacy you’ll leave behind and you can set them up with an Infinite Banking policy that you pay into.

There are all the same benefits of a normal Infinite Banking strategy for yourself, with the bonus of it opens the door for you to educate your child on finances and allow them to learn more complex ideas and get ahead in life.

By instituting a policy for your child, you can establish a lasting financial legacy that will benefit the many generations to come. The death benefit from the policy can be utilized to offer financial assistance to your child’s family or to contribute to a trust or even a charity.

Something important to note – there are 3 parties to every life insurance contract.

You have the policy owner – this is the person that pays the premiums and has all the control over the policy. Only they can make any changes, withdrawals, take loans etc.

Then there is the life insured – in this case it would be your child.  This is the person that if something happens to them, the life insurance pays out.

Then you have the beneficiaries – this is if the life insured person passes away, the life insurance would be paid out to the beneficiaries.

Why do I make this distinction of the 3 parties to the contract – well, you as the parent or grandparent and the policy owner have complete control of the policy.

Your child doesn’t have any control of the policy and can’t take loans, withdrawals or make any changes no matter how old they are.  A lot of people like having this control.

Over time when your child is older and more financially responsible, you can transfer ownership of the policy to them in a tax-free way which is like giving them a gift of whatever the cash values amount is.  This can be at any age.

You can also set them up as a “contingent owner” so they will automatically receive the policy if you pass away before transferring it to them.

Kid policies are great. I have them on my kids. Many of my family members have these policies on their kids.

My business partner at Safe Pacific, Robert has them on his kids.

We do this ourselves; we don’t just make videos on the internet telling you to do something we don’t do ourselves.

Final Notes

With this being the last blog of our comprehensive series on the Infinite Banking Concept, thank you for watching all the way through and if you haven’t then we recommend watching the rest as this may have been a little confusing without having any prior knowledge on the topic.

Contact & More Info

If this is something you want to set up for yourself, your family or your business please reach out. We’ve been doing this all day every day for the last 12 years and have 100s of clients all across Canada.  I’m happy to chat and see if we can be a good fit to work with you. Fill out the table below and we will get back to you in 24 hours on business days.If this is something you want to set up for yourself, your family or your business please reach out. We’ve been doing this all day every day for the last 12 years and have 100s of clients all across Canada.  I’m happy to chat and see if we can be a good fit to work with you. Fill out the table below and we will get back to you in 24 hours on business days.