Ben the Banker
The better he got to know James and his business, the more Ben realized that by making his whole life policy a foundational part of his financial stewardship, and utilizing it the way he had been, he was really functioning as a banker without all the mess of opening up an actual bank!
Ben was starting to realize that a dream that used to seem too far fetched for he and Kim after his accident could now be a reality. Their kids were out of the house now and he knew it wouldn’t be too much longer before they had families of their own. Ben and Kim dreamed of being able to have a home that was big enough for both Jack and Rick to bring their future wives and kids to stay with them for long weekends or possibly even a full week at a time over Christmas! Just think…grandkids!! Little ones running around the house would be the perfect blessing as they got older.
He hadn’t been very mobile for years and having a place where the kids could always bring the grand kids seemed perfect. But they had been in their same small house for decades thinking that it was out of the question for them to get a bigger one after Ben’s crash. But talking to James had really gotten him thinking about banking principles and the ways in which he had been using his policy already. Couldn’t they use these same strategies to buy a home for them to live in?
After talking it over with Kim, Ben decided to take the plunge. They rented out their house and bought a bigger one using a $1,000,000 policy loan for the new house. They decided to work out a 30 year amortization schedule to pay back the loan, which they realized they could cover between the rent on the old house and out of their other assets and income.
As they devised this plan with their adviser, they realized that they would end up with even more cash value in their whole life policies because they were paying themselves back at a nice interest. If any emergency ever came up they were not obligated to make every payment, but at the same time, they knew it was important to be proper stewards and not cheat themselves or God since it was all His money anyways! And the beautiful thing was that if he were to pass away during this time, even more money would come into the family to pay for everything.
Ben was filled with gratitude. He had always seen those charts showing just how much money the banks make when you purchase a house (and he had no problem taking their money when the government was rigging the system to practically give it away free), but now he would be earning the interest that was made on the home he purchased! He got to enjoy it and profit from it, what could be better?
This is Part 10 in the story of Ben’s life using Whole Life Insurance in a variety of ways. You might want to read the introduction to this series which will link to each post in the series explaining how whole life works as well as linking to each post in this series on Ben’s story.
Photo credit: WVJazzman