Below is a transcript of the YouTube video that you can find on the LIFE180 YouTube channel.

I was curious what ChatGPT had to say about using infinite banking and how to get started with an infinite banking policy.

So what did I do? Well, I’m going to go through, and show you the 10 steps that ChatGPT told me that I needed to take to start an infinite banking policy, then I’m going to give my feedback at the end of each step.

Step 1 – Understand The Infinite Banking Concept

“According to chat GPT. Infinite banking is a strategy that involves using a specifically designed whole life insurance policy as a personal banking system.”

“It allows you to accumulate cash value within the policy, which you can then borrow against to finance your purchases and investments.”

Everybody should do their research and really understand what they’re getting involved with. I love how it says it’s just a personal banking system that you can leverage and that you can borrow against to finance your purchases and your investments.

One of the key things that I think it says here when I did this query for infinite banking on chatGPT on how to do infinite banking, how to implement it, the first thing, notice it says you need a properly designed whole life insurance policy. Nowhere in this are you gonna see indexed universal life.

There’s a lot of charlatans out there on the internet that talk about, yes, IUL is infinite banking on steroids. That’s what they say. But the bottom line is nothing could be further from the truth. If you try to follow one of the people that say you can utilize IUL for infinite banking purposes, you are setting yourself up for catastrophic failure. And that is my feedback on number one.

Step 2 – Research Insurance Companies That Are Good For Infinite Banking

“Look for reputable insurance companies that offer whole life insurance policies suitable for infinite banking. Compare their policies, fees, and features to find the best fit for your needs.”

So artificial intelligence is amazing, right?. Researching companies is a great step, the next step is going to be finding a qualified advisor, because when you work with a qualified advisor, they’re going to be able to guide you and help you research.

Now, yes, do some research on the front end of the companies. That’s one of the reasons we work with five companies, because not every company is going to be able to offer the same benefits. There’s a lot of people that focus on some of the smaller companies that are reputable. In the same way there are people who focus on some of the larger companies because they have better financials, balance sheets or the perceived financial strength of being one of the top four companies and having huge general funds and all this stuff. That gives a perception of safety. But the bottom line is, most of these companies are amazing.

When we talk about the five companies we work with, some of the bigger companies, they can be good if you’re talking about high, high, high net worth people because they’ll take your money, they’ll allow you to put monstrous amounts of money into your policy, and we’ve had a lot of people do that.

Some of the smaller companies are actually better fits for a lot of people because when you look at what the goal of these policies is to use a lot of paid-up additions. When you look at the paid-up additions riders that you put into this what most people don’t realize is that there’s a fee for these paid-up additions riders, moreover, with the bigger companies the fees are higher on the paid-up additions rider compared to using some of the smaller companies that we work with, when I say small they’re still big companies, but they’re just small in comparison to the monstrous companies.

When you think about really looking about what is the right company that’s your fit, that is gonna be in alignment with your goals and your values and your needs  you have to work with the right kind of advisor, he’ll be able to help you guide through that. Once again, you should always do your own research and try to figure out what those fees are. I’ve done some videos that break down and do a comparative analysis on all the different companies that show the different fees.

Step 3 – Find A Qualified Advisor

“Seek out a knowledgeable and experienced financial advisor who specializes in infinite banking strategies. They can guide you through the process, help you understand the intricacies, and recommend appropriate insurance companies. “

This is an extension of what I said before. You should do your research, you should understand what you’re getting involved with, never just take anybody’s opinion at face value, then once you do that and you have this foundational understanding, then you work with a professional advisor, somebody like us. It doesn’t need to be us, but make sure you work with somebody on the internet or somebody locally that really understands this.

The bottom line is very few agents understand how to do this properly. So working with an agent that doesn’t just represent one company, there’s a lot of captive agents out there that work with companies that cannot help you purely in this way, and working with somebody that can connect you with a company that’s truly aligned with your needs, your values, your goals, your objectives is a key thing. It’s one of the most important things. So that is number three.

Step 4 – Apply For A Whole Life Insurance Policy

“Work with your advisor to apply for the whole life insurance policy from the chosen insurance company. Provide the necessary personal and financial information required for the application process.”

Depending on the level of financial background that you have, if you’re a higher net worth individual, there’s going to be a much deeper financial questionnaire that goes along with getting a policy, because obviously their anti-money laundering concerns are higher, and there’s a lot of concern around that with whole life insurance, there’s so many tax benefits and there’s so many reasons that people would want to filter money in to the whole life insurance policy that you’ve got to make sure you do this the right way and you got to understand that sometimes the financial questionnaire and this can take months to get through.

The higher the net worth, the larger the policy, the longer the underwriting period, and it’s important to understand that. The only place I really disagree with this is notion number four, just getting right into the application process. I think there is something good in that and something bad in that.

One of the things that we coach is, yes, you want to start the application process but they’re missing a step between four and five. So I’m going to just touch on it right now, we want to start the application process because you’re never committed to anything when you start the application process. It’s simply trying to see what kind of approval the insurance company would give you and what you want to do.

The fact that the approval process typically takes 45 to 60 days, what you want to do is to figure it out. All right, I’m going to apply for this. I’m going to try to get my rating from the company. At the same time as I’m going through that process, I’m going to be dialing in my finances. If you have everything figured out, maybe you’re in really amazing financial shape, but maybe you have some debt, maybe you have some other things, other kinds of loose strings in your personal finances that you need to clean up.

This is a time where you would work with your advisor, work with your coach, work with your agent to help you clean that stuff up and help you figure out how the rest of your personal finances align with your infinite banking strategy. How are they going to coexist together? Because that’s a thing that a lot of people miss, is that when you implement infinite banking as a major foundational portion of your financial life, it’s gonna impact everything, and it’s gonna be an amazing thing, but it’s also not seamless.

You need to assess all your personal finances and understand the broader impact of any significant changes. When you do this, you'll realize that the adjustments required aren't usually drastic; it's more about comprehending the flow of money in your life. Take the time to go through this process and embark on an educational journey because you should never invest in something you don't understand. That's why diving into the application process is beneficial. My main concern isn't so much about step four, which involves starting the underwriting and applying for whole life insurance.

My problem is the fact that number five, they jump completely over all the things I just talked about and they skip it and it’s not really in this process. So I think it’s important to inject this in to really understand. So let’s get into number five.

Step 5 – Undergo Medical Underwriting For Your Whole Life Insurance Policy

“In most cases, you’re going to need to undergo a medical underwriting process, which may involve providing medical history, completing a medical exam, and having blood work done. The insurance company will assess your risk profile and determine your insurability and your premium rates.”

So this is a big thing. There are situations if you’re young and you’re healthy and you got a good medical background or history and you are not going for a policy that’s too big, you can achieve with a lot of these companies what’s called accelerated underwriting. You can get a preferred status without having to go and do a crazy medical exam and blood work.

However, a lot of people sell that as a big positive. What my experience is that only a small percentage of people actually qualify for that because you have to be extremely healthy, you have to have an extremely positive medical history, and sadly, in this country, not many people fit that parameter to be able to do that.

So, just to understand that that’s part of the underwriting process that I was talking about in number four, when we talk about this number five, this is one of the reasons it takes 45 to 60 days on average, because you’re gonna have to go through and get the medical exam, do the underwriting, do the blood work, do all that stuff. It is insurance.

Most of the time, they’re going to look for attending physician statements. That can take up to 30 days for your doctor to respond to. That’s a big reason it takes so long for the underwriters to make a decision. They have to wait for your doctor to respond. If it takes them 30 days, the whole underwriting process gets held up. So that’s just something to understand when you’re setting your expectations for how long this stuff can take.

Step 6 – Review And Sign The Whole Life Insurance Policy Delivery

“Once your application is approved, carefully review the terms and conditions of the policy. Understand the premium payments, the debt benefit, cash value growth, and any other relevant details. If everything meets your expectations, sign the policy.”

Never sign anything you don’t understand. If you work with an agent, if you follow the process and you follow the steps to this point in time, you’re working with an agent, an advisor that’s been coaching you and working with you, doing all this stuff with you, well then obviously you’re going to understand what you’re getting involved with.

Number six is really just checking to make sure that everything that you’ve signed is in alignment or everything that you’re about to sign is in alignment with everything you’ve talked about.

At this point in time you should completely understand it, it’s just about dotting your I’s, crossing your T’s, making sure everything is in alignment with the process that you’ve gone through to this point in time to make sure no errors were made. Because sometimes when you submit things to companies and you get the final illustration to sign, errors do come back.

So, we need to all, this should be your agent, this should be you, honestly your agent should do this to make sure that there are no errors. But once again, this is your money, it’s your life, and so double-checked, right? It’s like that trust-yet-verify kind of mindset.

Step 7 – Fund Your Whole Life Insurance Policy

“To start building cash value within the policy, you’ll need to make premium payments. Work with your advisor to determine the appropriate funding level based on your financial situation and goals.”

The amount that you fund the policy at the level that you make your premium payments and make deposits into your banking strategy is a big deal. It’s important to understand that what you’re doing is you’re capitalizing your financial strategy.

As I said in number one, you are utilizing your policy to capitalize your bank, so to speak, that you can borrow against for major purchases and investments. I’m a big believer you only want to make purchases of cash-flowing investments. Yes, you can use it for other assets like cars and other major capital purchases that you would make if you’re a business. You can use it for major equipment and stuff of that nature, which is a really positive way to use it.

The bottom line is, I think the purpose of this is why I coined the term cash flow hacking. The purpose of utilizing an infinite banking policy the right way is to utilize it to accumulate cash flowing investments and then use the cash flow to manage the policy loans, never interrupting the growth of your money.

And that’s where the real power of growth can start to happen. If you focus on utilizing your banking policy for the purposes of cash flow investing, this is where you can reach your financial goals much, much faster.

At the end of the day, that’s what it’s all about. It’s what freedom is all about. This is how we’ve been able to get to the Dominican Republic. This is how we’ve got these projects going on down here. This is why I’m going to be launching the fund. This is why I’m going to be doing a lot of these things.

I wish everybody knew what I knew and could experience what I’m experiencing because you’d go out and you’d execute and implement the same things. But the thing I’ll say to this is that you can’t draw blood from a rock. So you gotta figure out, this is a reverse engineer situation.

Figure out where you wanna go, what your timeframe is, and your funding of the policy needs to be in alignment with reality to accomplish your goals. You don’t wanna stress yourself to the point where you put yourself at financial risk, but you also don’t want to make it too easy so you are not going to reach your goals. Think about it as a forced savings plan to accomplish your goals. That’s how I look at the funding mechanisms of your policy.

Step 8 – Accumulate Cash Value In Your Whole Life Insurance Policy

“Over time, your premium payments will accumulate as cash value within the policy. The cash value grows on a tax deferred basis and you can access it through policy loans or withdrawals.”

This is true, as you go through and the policy matures and you keep making premium payments and you’re consistent with that and the more money you put in, the more money you’re gonna have access to for whatever it is that you want, like we just talked about in the last step.

When you find this thing, you wanna make sure that you’re doing it consistently and you have access to that money through policy loans and withdrawals. Depending on when you’re wanting to utilize that money and how you’re wanting to use that money, if you’re really utilizing it for cash flow investments or you’re utilizing it for major purchases for a business or maybe a car when you’re younger, I would say you don’t wanna use the withdrawal method almost ever.

That’s like a last case scenario. You always want to use policy loans, and I’ve got a lot of other videos that explain why that is the case. That would be another 20-minute explanation. But you want to use policy loans, not withdrawals.

Now, when you’re in retirement income, it can make sense sometimes to do withdrawals up to cost basis, meaning withdraw money until you have, while you don’t have to pay taxes on that money, and then take policy loans after you’ve hit the cost basis and go from there. So there’s just different strategies, once again, on how you access your money. Just know that you have access to it tax-free.

The strategy in which you access that money is absolutely imperative to your success in doing so, and I think that’s really important to understand. You gotta work with an advisor that can coach you through that, and that’s why I just love to help people here, because you need to understand this.

I see so many times people get into this and they don’t understand the actual nuances of how it works and they get stuck and they get involved with a product that is actually really amazing for them but they don’t like it and they’re not excited about it because they don’t truly understand the power that they’re holding as a financial tool. So that was number eight.

Step 9 – Implement Infinite Banking System

“With sufficient cash value built up, you can start using your policy as a banking system. Borrow against the cash value to finance purchases, investments, or other financial needs. Repay the loans over time which replenishes the cash value and allows for future borrowing.”

I love the process because one of the things that I always say to people is that you are not really implementing banking, your banking policy. Everybody’s like, buy a banking policy. You’re not implementing a banking strategy until you capitalize your bank. So it says it very well here. Number eight, you’ve got to build up your cash value. Number nine, you start to implement the infinite banking strategy, but you can only do that once you’ve capitalized your account.

Step 10 – Continuously Monitor And Adjust Your Infinite Banking Strategy

“Infinite banking requires ongoing monitoring and adjustment. Regularly review the performance of your policy, assess your financial goals, and make any necessary modifications in consultation with your advisor.”

“Remember, infinite banking is a complex financial strategy, and it’s important to seek guidance from a qualified financial professional who can tailor the approach to your specific circumstances.”

One of the things that we really focus on here at Life 180 is, it really differentiates us, is to be there throughout the life of the policy with our clients, because a lot of times, you can get these policies, and they look really good on paper, and where you are right now is probably not where you’re gonna be in five and 10 years from now.

Hence, work with a company that is gonna be there with you, for you, to coach you, if you have any changes, if you need any consultations on how the policy’s gonna interface and interact with any kind of investment or major purchase that you want to actually go out and take advantage of, having a coach and an advisor that can be there for you to help you understand how your policy is in alignment with what your goals are and how that will change over time is absolutely essential.

So that is it. Those are the 10 steps. I think overall they were really good. I love this chat GPT thing. It’s a great place to start the research. I think the only variable in this step that I really didn’t align with is the fact that it didn’t spend much time talking about the preparation in between four and five.

Talking about the time that elapses between the application and the medical examination. Like there’s a whole step. It didn’t really explain what you should be doing while you’re going through the process with your advisor, how you should be handling your personal finances when they’re going through the underwriting process, so to speak.

Hopefully you found value in this. If you did, share it, get it out there, please. I appreciate all the love and the support that I’m getting from all you guys watching this content.

Until next time, have a blessed, inspirational day. Thanks