PBC Policy, when designed and structured properly with Paid Up Additions, offers what can be described as ideal Personal Banking Concept vehicle that offers liquidity, ongoing guaranteed compounding interest of your money, dividends and asset protection in many jurisdictions. 

A. Liquidity
Your money in your policy is available to you for any reason and any time. It is your money and the company must allow you to use your money in your policy in the form of loans or withdrawals. You do not have to qualify in order to take out a loan. 

B. Tax Benefits 
Guaranteed Tax Free Death Benefit, Tax Free Living Benefits, Tax Deferred Growth, Tax Free Policy Loans and Tax Free Withdrawals (up to basis) 

C. Compound Interest
Not only cash value earns interest, EVEN if you have an outstanding policy loan, your money earns continuous compound interest on infinite PUA deposits or gross cash value balance; this results in a highly efficient banking concept, as your money continuous to grow and grow as time goes by. 

For example, if you had PBC policy cash value of $10,000 earning continuous COMPOUND INTEREST at 4% guaranteed plus dividend; at the same time your borrowed $5,000 policy loan could be working for you earning 8% interest somewhere else, this concept is simply having your money working for you double time! 

D. Dividends
As part of the benefit of using a mutual company, your PBC Policy receives dividends. Although not guaranteed, most mutual companies have paid dividends for over 100 years, including during the Great Depression and many stock market crashes. 

E. Asset Protection
When designing as an asset protection or wealth transfer strategies, it is important to check with your local state laws because many states have protections in place protecting the cash in a life insurance policy from the reach of creditors.

F. Recapture Debt
This concept becomes powerful when used as a strategy to recapture debt costs being paid to banks and other third parties.  As Nelson Nash recommends: to treat the policy like a business, in this case, you are the owner of your PBC Account. It is essential that the policy loans be repaid with interest and it is advisable that premiums continue to be paid through the duration of the policy period rather than allowing the cash value to pay the premiums.


In Nelson Nash’s example, if you operate a grocery store and then raid the shelves for your personal use, this will have a serious adverse affect on your business performance. Instead, as the business owner, you value your merchandise GREATER than others, therefore, as a banker dealing with your own money, you value your money Greater than the banker.