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A Little Known Way To Invest- Think ‘Bank On Yourself’!

A Very Cool And Safe Way To Make Money!

You may or may not be familiar with how dividends are generated from life insurance policies, but did you know that almost NO life insurance companies will even tell you, much less offer, a certain type of whole life insurance policy that returns close to 10%, per year? These are known as participating whole life policies.

Really? Making money for yourself from life insurance? Without killing someone? I’m joking, of course but I’ve had people say things like ‘life insurance is boring. It’s morbid. It’s for old people. I’m not interested in that’. And I said to them, just let me finish telling you about it. After I’m done explaining, they realize they had no idea what its actually about.

Through something called Bank On Yourself, they are teaching people about the existence of this little known aspect of the whole life policy, that can be structured for maximum dividend returns. You make money, like you would with any other investment vehicle.

And, there are no other types of permanent or cash value policies that come with the level of guarantees and advantages as whole life insurance does, I’ve found out.

The only part that’s not truly guaranteed with many life insurance companies, is the dividend payout (which is why Bank On Yourself recommends using a company with at least a 100 year track record of paying them). There are literally only a handful of these companies, such as MetLife. Bank On Yourself only uses the few companies that have been paying out dividends regularly, without interruption, for over 160 years. Even during the Depression!

Why Do Most Insurance Companies Avoid Selling This Type Of Policy?

The answer is simple. The commissions paid on this type of policy are too low. Agents don’t want to push them because the commissions they’d be receiving are 50 to 70% less than what they make through Universal or indexed policies. Most insurance companies don’t offer this special type of whole life policy. They don’t even teach it in their training courses!

So, a correctly structured dividend-paying whole life policy gives you certain advantages and guarantees, more than any other type of cash value life insurance policy or traditional retirement savings account.  And no two policies would be the same – you can custom tailor it to suit your particular needs or goals.

It’s kind of unbelievable that insurance companies either don’t know about this, or keep it hush, simply because they can’t profit enough from it. But that’s how it goes, companies do what’s most profitable for THEM, not always the customer.

What I personally like about this type of ‘investment’, which technically is not considered an investment by the industry, is, it’s a really safe way to park some of your money, AND receive dividends at the same time, which you can roll over and allow to compound. When the economy tanks and the markets go wild, an insurance policy will not be affected whatsoever.

Diversifying Your Assets – (Don’t Put All Your Eggs In One Basket)

Clearly, it’s a good idea to have a diversified investment strategy for your money. If one thing fails, you still have everything else. ‘Investing’ in an insurance policy is probably the safest, investing in precious metals is another. Finding a good hedge fund could be a 3rd option, (hedge funds trade the markets both up and down, thus balancing out losses).

Traditional funds that rely only upon prices ‘moving up’, are the most unreliable, and carry the biggest risk for loss. So finding ‘safe havens’ for your money is the way to go. A safe haven investment is one that remains pretty solid no matter what is rocking the markets, like interest rates being adjusted. Insurance policies are about as reliable as it gets, they remain ‘fixed’ no matter what.

Bank On Yourself has plenty of experience behind them, but they also have their detractors I’ve noticed, in researching them. Those criticisms usually come from other people in the insurance or financial industry who are pushing their own products and services. B.O.Y. has been in existence for over 10 years, with their ‘strategy’ for building a retirement account via whole life policies proven, and backed up by thousands of policy holders.

Who Are The Founders Of Bank On Yourself?

It was started by Pamela Yellen (no relation to Janet Yellen), and her husband Larry. Both had an extensive background in the financial world. They experienced harsh losses in the markets, like so many have. Pam learned about whole life policies in her research for alternative investment plans that would be safer.

So she wrote a book about this relatively unknown way to receive guaranteed dividends at a fixed rate, for life. (Believe me, RICH people know about it!) If you want to know more, see her book here. (I am not affiliated with B.O.Y. and receive no compensation for promoting them.)

Bank On Yourself has its own specially trained agents who are licensed to set up these unique whole life insurance policies with their custom constructed riders, that give you these great returns. As I’ve mentioned, having a life insurance policy with one of those venerable and established 100 year old life insurance companies, is about as close to ‘certainty’ as you can get. A whole life policy has a guaranteed, pre-set annual cash value increase, that you can count on for the rest of your life.

I opened an account myself, and I am just letting it compound, as I see it as retirement money for down the road. It is similar to having a 401K, only you structure it yourself, and it comes with many more benefits. (This is great for people who don’t have 401K’s through an employer).

And there’s a thing called ‘paid up additions’, which increases the value of your account. What you do is, use the dividends you receive to continually add on riders. This increases the cash value of your account. You can start with as little as 1K, and add more to your ‘account’ as you go.

Another Reason To Get This Special Whole Life Policy

One of the benefits of owning a whole life policy that is structured ‘correctly’, is that you can borrow against it, interest free. Depending on your account size, people have used it for loan money to buy cars, houses etc.

You are borrowing from ‘yourself’, interest free. Nobody likes giving banks a chunk of their money for the ‘privilege’ of a loan.

So How Much Can You Borrow From Your Own Policy?

You have the option of borrowing up to 90% of your cash value through any of your policy loans, any time and for any reason.  The only questions you’ll get are how much do you want and where do we send it?

That’s because you are contractually guaranteed to be first in line to access your cash value and you cannot be turned down for a loan!  You don’t need to fill out any credit applications or give up something as collateral. This is a feature many policy holders take advantage of. You simply pay back the loan in monthly payments as you would with a bank loan, minus interest. Pretty sweet.

There is so much more to this great opportunity, and I would urge you to have a look at the Bank On Yourself website. They also offer free, local to you, consultations. That way you can find out in person exactly what kind of ‘plan’ you could set up, to suit you. Again, I am not affiliated with B.O.Y. I am just a fan! It’s nice to share something like this that works and is ultimately, a very safe investment vehicle, so I’m more than happy to give a shout out to Bank On Yourself!

If you’d like, please leave a comment, or ask a question, I would love to hear your thoughts!

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  1. James

    This is really great stuff.  I feel a little embarrassed to admit, but I didn’t even know you could borrow against your life insurance policy.  Most millennials don’t do a lot of research into life insurance, so it’s nice to find a site that lays it all out there for you.  

    At my blog invest like a warrior, I’m also looking for new article topics.  Can I email you a few questions?  I’d love to hear more about life insurance.  Also I’d like to see if you could recommend how I find a good policy.  Also, do you recommend a certain age when we should start thinking about life insurance?  I’m just in my 30’s  so I’m not sure if I’m too young or at just the right age.

    • Olivia

      Hey James…as for finding a good policy, I’d go with BankOnYourself, as you can set up a whole life policy any way you want it, to meet your needs. And set it up for kick ass dividends at the same time! I guess you’re never to young to get an insurance policy, but especially if you have family you want to look out for. I never got insurance until I was ‘much older’ lol. The part about borrowing against your own policy is not disclosed by most agents who don’t set up these types of whole life policies, for the reasons i mentioned, they just don’t ‘sell’ them, for lack of profit to them, or they don’t even know about it. Obviously, you have to have the cash invested already, that you borrow from, so if you wanted to buy a car cash, you’d borrow 25 or 35 grand cash, and then pay back your policy without interest, on a monthly basis.

  2. Nuttanee

    How did you find out about participating whole life policy? This is the first heard. It is sad that since they don’t make that much commission so they don’t tell us. I am a little lost, so in order to participate in this policy, Do I have to sign up with bank on yourself? Do they act like mutual funds company? sorry I have so many questions since I am still trying to understand the concept. Thank you in advanced

    • Olivia

      I found them in my searches for investments. Almost no one has heard about this, only very wealthy people have known these little ‘secrets’ and taken advantage. What I like about it is, the safety of the ‘investment’, and the nearly 10% return, yearly. You will never get that from a bank account, or most other investments in funds. You also receive dividends which you can reinvest to grow the value of your account even faster. Just go to their site, and set up a free consultation, there’s no pressure, they’ll just give you the details!

  3. Luke


    I found your article about Bank On Yourself pretty interesting. I need to admit that I`m confused about all investment options which are offered to us over internet nowadays, but you described well this investment option and I`m sure it will be helpful for many people. I also agree with you that insurance policies are not so good as insurance agents try to convince us, I don`t have good experiences about that.

    keep up the good work!

    • Olivia

      I never had any idea, much less interest, in getting ‘insurance’ until i learned about this. Now my money is just sitting there making money. It’s a lot more than you get on a bank account, and a lot more secure!

  4. Shannah

    I visited this site because I really need to start saving for retirement, and I’m in that group you mention that doesn’t get a 401K from my employer. This looks really interesting, but I’m afraid to say I’m not quite clear on how it works. Aside from borrowing money (that I assume you pay back to the account), how do you actually make money here? Are you actually paid at some point, or is it more like interest accruing in a traditional savings account? (As you may be able to tell, I am quite knew to this whole investing thing. I do understanding how interest and investment works… that’s about it.)

    • Olivia

      It’s like a bank account in that you ‘invest’ in the policy, say you start with 1000$, and you can add more every month, maybe 1 or 200, something like that. It will grow at a fixed rate close to 10%, per year. You will only borrow against your own investment, say you had invested 50,000, you can borrow 90% of that without losing your policy returns/dividends. You can get a free consultation on the phone with them, it costs nothing to talk to one of their agents to get details.

  5. fyre

    It’s funny that I saw a blurb about something similar to what you are discussing just yesterday but, I didn’t have time to some research on it at the time.  I guess 20 years ago Life Insurance did seem morbid to me but, now it is more relevant.  I was thinking of buying life insurance in combo with my home insurance to see if I can get a better deal as well.

    After reading your article I just did a grateful 180 turn.  I think you just saved me from throwing a lot of money out of the window, so to speak.  I’ve never had a 401K and, I’ve looked into all kinds of ways to save for myself and my small business.  Moreover, I’ve been looking for investments for someone ‘like’ me who is just a drop in the economic bucket.

    I can’t thank you enough for this detailed article on Bank On Yourself <~~ that has a great ring to it as well.  These are the things they don’t teach you in school right?  I come from a land of conservatives that never even discussed who they vote for…let alone reveal any of their investment strategies.  So, I am super grateful when someone like you helps me understand and learn something I may have never discovered on my own.

    • Olivia

      Yes, Bank On Yourself really makes a lot of sense, and as I mentioned, many wealthy folks have been taking advantage of these insurance dividends for a century or longer. It’s free to have a phone consult. with them, no obligations!

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