In this video, I’m going to break down how to create a family bank and how it works.

1. What is a Family bank and how does work
– Honestly, when I first heard the term, my mind went towards family pulling in cash and investing money and borrowing from each other
– But in reality, that’s not what it is all
– It has a lot more to with insurance policies than I thought

The idea is:
– You basically get a whole life insurance policy instead of term insurance which is cheaper
– And you pay your premiums and eventually, you’ll have some cash value in your policy
– Which you can then cash in and drop your policy if its matured, borrow against, or just let it keep growing.

Family Bank:
– So by buying this policy in a way you would have access to this cash
– That grows tax-free which you can also past on to your family tax-free
– And when you borrow against your policy the interest you pay, will get canceled out because your money will still continue to grow.

Tip: Overall, this sounds pretty good, you get whole life insurance and use the cash value as it was your bank, and you borrow from yourself. ( that’s the core idea) – and you can get policies for the whole family.

Fun Fact: according to google this was created by Nelson Nash and also according to forbs, its also in a book called what would a billionaire do.

2. The truth about this
– now I’m only 23 years old but in the past three years or 4 I’ve read over 150-200 books, because I know the knowledge of the people that came before me is very important so I avoid mistakes
– and I remember my mentality when I was making 60 a week and now making $45k per month
– and let me tell you something, in those 4 years of growing and getting knowledge, I have never heard about such a bad idea.

I’m going to share a story with you guys to tell you why this idea sucks:
– I remember I was talking with a life insurance agent who was not a Fiduciary ( I wanted to get policy and I didn’t know much)
– So he tells me about term life insurance and why whole life insurance is so much better ( but doesn’t tell me he gets a bunch of money in commissions if I actually buy)
– Tell me about the cash value, tax-free, cash out of the policy, use the policy to pay itself ( all this great stuff, so I tell him I’ll call my wife and ask her)

After reading books on Life insurance:
– I found out that they make a commission for as long I have the policy open ( and its in their best interest to sell me on it)
– I found out that life insurance is not an investment
– I learn to look for feudatories and that term insurance is the best deal

I also learned:
– That with all the fees and commission they payout, my cash value was not going to be much at all for at least the first few years ( 10-15 years)
– The cash value if your not smart, once you die the insurance company literally takes it.

3. What I recommend
– If you want to help your family
– Get term life insurance and get them to invest for retirement or even into a taxable account
– And if you want to invest with them, you can create an LLC where you are all partial owners and buy investments like real estate and split the profits and build wealth ( but insurance policies are not investments )

Great article on it:,usually%20in%20the%202%25%20range.

Cash value:,t%20trash%20your%20cash%20value.


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*Some of the links and other products that appear on this video are from companies in which Tommy Bryson will earn an affiliate commission or referral bonus. Tommy Bryson is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. I’m an Accountant but I’m not your Accountant, always review information with your Accountant/CPA and your Financial Advisor.