Bulletproof Banking

An Opportunity Fund is a place to grow, protect, and use your savings before and during the purchase of an asset.

You could keep a bunch of cash under your mattress. As the stash increases, you lose more and more purchasing power over time. Holding cash can result in losses equal to or in excess of your earning potential. OOF.

Wealth Battlers prefer to leverage whole life insurance to build their opportunity funds. We call this strategy Bulletproof Banking. Whole life insurance policies offer a guaranteed growth rate and potential dividend payments. This allows your cash value to grow over time, unlike cash losing value due to inflation or stocks exposed to market risks and policy manipulation.

Bulletproof Banking allows you to purchase an asset while maintaining a guaranteed yield in a tax-advantaged environment.

As you contribute premium into the whole life insurance policy, it accumulates cash value with guaranteed growth that you can borrow against at any point.

In addition, mutual company policyholders may also earn dividends annually if they keep their policies in force.

In a word... wonderfully.

The Bulletproof Banking strategy allows you to borrow against the cash value of your whole life insurance policy. These policy loans are generally not treated like taxable income. While you have a policy loan out, your account value does not go down the same way a withdrawal would. It can continue to grow with interest and dividends.

This can be a more tax-efficient way to access funds compared to cashing out stocks and paying capital gains taxes, or pulling from retirement accounts and triggering ordinary income taxes.

Bulletproof Banking done right can provide protection against creditors and legal action, depending on policy structure and state law.

It can provide a safe haven for funds that might otherwise be exposed to loss. In contrast, cash holdings, stocks, and retirement accounts may not have the same level of protection.

When you take a policy loan in Bulletproof Banking, the insurance company writes you a check from their general fund. In return, they get collateral against your death benefit.

When your policy matures, any money on loan plus any interest accrued will be deducted from the death benefit the insurance company is contractually obligated to pay to your beneficiary.

But here’s the truth: paying cash is financing. You lock your purchase into a single use of money.

Bulletproof Banking allows you to turn money from this OR that into this AND that. Actually, this AND that AND that.

You can go on vacation AND have that money growing in the background AND leave legacy. You can start a business AND collect dividends on the investment you put into your business AND protect your family.

Most people think of loans with terms like a car loan or a home mortgage. If they borrow $10,000, they assume they must pay back X dollars per month for Y years or else something bad happens.

In Bulletproof Banking, there are no traditional repayment terms. You can pay back the policy loan on your own schedule, unlike traditional loans that require a set monthly payment.

You can set your own repayment terms with yourself. You can base it on a percentage of new business, kick the can down the road while you wait for something to pay off big, or structure it around your own financial life.

The insurance companies pay a commission for writing a policy. However, most agents will not write these policies unless someone is able to start with tens of thousands per year because commissions can be low relative to other products like Indexed Universal Life.

That is why we structured WealthBattle.com around a subscription model. It allows us to continually support people, have regular meetings, and answer questions in real time as life grows and changes rather than saddling you with a policy you do not know how to use and saying, “Good luck.”

We welcome people who have policies with other insurance agents and companies to bring their questions to WealthBattle.com because we will cut to the math and logic behind a given strategy.

We believe it is important to stand by our community and support you, whether your Bulletproof Bank is $1,200 or $200,000+.

There are a few flavors of permanent insurance that are not whole life. Most Indexed Universal Life policies do not have the same guarantees.

IUL does not have guaranteed premiums, so your costs could go up over time — sometimes dramatically — which can force people to cancel the policy.

Bulletproof Banking with whole life has a guaranteed, fixed premium for your whole life. No surprises. The cost never goes up, and in many cases, the payment can be structured to go down in older age to maximize tax-advantaged money as a retirement supplement.

IUL also does not have guaranteed growth because it is indexed to the market. You may have higher or lower rates of return than what is on the illustration.

Bulletproof Banking with whole life has contractually guaranteed returns and mutual companies have delivered dividends for over 150 years. That means your money can grow in the background while you protect it from market losses, taxes, and legal judgments while still being able to use it to grow a business, buy a house, purchase a car, and more.

Bulletproof Banking has guaranteed fixed premiums, guaranteed cash value, and a guaranteed death benefit.

Follow the instructions on the policy loan document from your contract.

If you have written a policy with Penn Mutual, you can download the form below.

Download Policy Loan Form →

If you print, sign, and scan the document, you can email it to [email protected] rather than mailing or faxing.

Join a Bulletproof Brigade meeting on the Wealth Battle Discord Server — a small group that meets on the 2nd Tuesday of every month at 8 PM Eastern.

Bulletproof Brigades are small group meetings designed to promote these three things with your bank:

• Growth of funds
• Protection of principal
• Using funds along the way

It is included as part of your subscription to WealthBattle.com.

Schedule a Private Conversation →