What Is Bank on Yourself? A Guide to the Bank On Yourself Principle

by Dr. Tomas McFie

Early on in my trek to developing and applying the Perpetual Wealth Code™ I was approached by a recruiter. This recruiter worked for a large marketing group that promotes the brand Bank On Yourself. The objective was to enlist me to represent Bank On Yourself as an agent instead of me remaining an independent agent working directly for my clients.

What Is Bank On Yourself?

If you’re familiar with Bank on Yourself or have read Bank on Yourself reviews, you may already have some idea of how the principle works. If you aren’t familiar with Bank on Yourself, it’s one of many different philosophies like Infinite Banking, The Infinite Banking Concept, Private Family Banking, the 770 account and others. All of these philosophies and programs have a foundation in the general principle that a life insurance policy can be used to build savings and ultimately allow you to leverage cash values for self-financing. Obviously, I leverage this same principle and recommend it to many of our clients. But it’s just a subsequent detail of the bigger picture. Unfortunately, we’ve also seen some of these other programs fail to prioritize individual client success, which is our main focus at Life Benefits.

I turned the offer down to work as a Bank on Yourself agent. The rest, as they say, is history. You see, I wanted to pursue a path that allowed me to provide what I believed to be the very best for each of my clients and prospective clients. Besides I didn’t want to get distracted by the ideas of some marketing group or guru about how to sell more or expand my commissions. Here is a short Bank On Yourself review, if you will, that covers some of the reasons I prefer not to represent Bank On Yourself.

Accepting this offer would have inhibited me and the team at Life Benefits from providing the assistance we are so well known for today. Whether it is finding the best product or company, writing articles and publishing videos, or designing the financial blueprints that our clients so greatly appreciate and benefit from, Life Benefits is about service. Belonging to a large marketing group would have restricted our ability to provide these services. In fact, at that time, one of the stipulations required of an agent to join this group was to give up the right to choose which life insurance company their clients’ life insurance applications were submitted to. That didn’t make sense to me then, and it certainly doesn’t make sense to me today. The responsibility to know what different companies offer and the art involved in finding the product and strategy that best fits our clients’ needs is very important to us at Life Benefits because it makes a huge difference in how successful our clients can become.

Speaking of design, designing the best policy for the needs of our client or prospect is something we take great pride in accomplishing here at Life Benefits. Without the right policy design, unintended things can happen to the policy owner. But we’ve “got your back.” Participating whole life insurance is a great place to hold your savings while allowing you to still leverage and manage money that normally wouldn’t be under your direct control. For example, policies designed with bundled term coverage, in order to hold more premium, can cripple your control over the extra money paid in premiums and therefore create a financial liability, a monetary loss and even excessive taxation in the future. At the same time, a term rider can be beneficial in certain situations, knowing when and how to use a term rider is critical.

At Life Benefits we don’t believe owning life insurance to be an investment. In fact, the U.S. Supreme Court ruled that life insurance is an asset. Several states have laws prohibiting life insurance being sold or classified as an investment. One of the reasons for these laws is that purchasing life insurance will NOT make you rich. Not even if you purchase multiple policies, leverage one policy to purchase another, or borrow money from your policy/policies and pay the loan(s) back with extra interest. All of these things are certainly doable and at times may even be practical, but they are not always as profitable for the policy owner as they are for the marketing group or agent(s) advocating these practices. Here are the real reasons participating whole life insurance is such a valuable financial asset:

  1. It can cover your liabilities.
  2. It can be part of a non-qualified tax free retirement plan.
  3. It can be used to finance asset purchases.
  4. It can help you recover the cost of acquisition on things you purchase.


These four qualities of life insurance are the reason banking corporations choose to own and use life insurance. At Life Benefits we help our clients understand how to utilize participating whole life insurance by implementing the Perpetual Wealth Code™. Joining a marketing group would have limited Life Benefits from referencing “banking” according to the recruiter that was attempting to recruit me. And that would have limited our ability to help you benefit from these four qualities.

Finally, all of us at Life Benefits are liberty-loving individuals who value your rights and freedom as much as our own. We realize that violating your rights or failing to share the entire truth with clients and prospective clients destroys the foundations of the economy that this great country was built upon. Belonging to marketing groups that would limit our freedom to share the entire truth simply to create a more easily marketed, “uniform” product doesn’t jive with our world view.

Today Life Benefits has become one of the most sought-out, independent life insurance agencies in the United States because we are known for honest and straightforward opinions. And, unassumingly, everybody knows that what we offer are opinions because we don’t provide paid advice or fee-based evaluation and management services. We never pressure you to do anything that you can’t afford to do or are uncomfortable doing. We know if it isn’t affordable, you can’t do it and if it’s not comfortable, you won’t do it. Our mission is to make sure you know ALL your options so that you can make an informed choice that is comfortable, affordable and profitable. It’s all about you, your money and your future. And that’s how it should be.

If you’re unsure about life insurance or just want financial guidance, schedule a free strategy session. We’ll answer your questions and help you get a strategy that will help you build sustainable wealth.

You may also like to read:
Bank On Yourself – CBS Response

Dr. Tomas McFieDr. Tomas P. McFie

Most Americans depend on Social Security for retirement income. Even when people think they’re saving money, taxes, fees, investment losses and market volatility take most of their money away. Tom McFie is the founder of Life Benefits which helps people keep more of the money they make, so they can have financial peace of mind. His latest book, How to Build Sustainable Wealth, can be purchased here.