Q & A
What This Covers
Richard Canfield answers client questions on borrowing to pay premiums, managing policy contributions like the Additional Deposit Option (Edo), and strategies for term-to-whole-life policy conversions. The session focuses on practical execution, clarity with insurance companies, and long-term planning for family banking.
Why Clients Use It
To confidently fund Edo and base premiums without disrupting cash flow
To learn when and how to convert term insurance into permanent coverage
To simplify annual Edo contributions using policy loans and automation
To ensure future insurability for children and spouses
Key Insights by Timestamp
00:00 – Borrowing to Pay Premiums
Richard confirms he has borrowed against his policy to fund premiums and Edo.
It’s safe if you have a solid repayment plan and don’t overextend yourself.
01:07 – Prioritizing Edo Contributions
Early years are most impactful due to compounding.
He prefers to pay monthly base premiums and fully fund Edo at the start of the year.
02:09 – Set a Clear Goal for Edo
Treat Edo like a fundraising goal. Track progress with a visual aid to stay accountable.
Clients do better with clear targets.
02:45 – Use Separate Transactions
Always separate base premium and Edo payments to avoid confusion.
Communicate amounts clearly to the life insurance company. They aren’t mind readers.
04:23 – Payment Structure Strategy
Switching from annual to monthly is fine but should be minimized.
You can use policy loans to fund Edo annually and pay back monthly, same cash flow, better results.
06:29 – Understanding Terminology
Different insurers call Edo by different names (e.g., ADO, Plus Premium), but it’s essentially the paid-up additions rider.
07:04 – Term-to-Whole-Life Conversion
If you’re ready to expand your system, don’t wait. Discuss conversion with your coach.
Term insurance can be converted even for non-residents, but some limits may apply.
15:39 – Insuring Children Properly
Richard personally adds guaranteed insurability and critical illness coverage to his children’s policies.
These add flexibility and protect against future health or financial underwriting barriers.
18:50 – Conversion Rules & Limitations
Converting term to whole life happens at current age.
Additional Edo may require a health questionnaire, even if the conversion itself is guaranteed.
22:36 – Keep Learning and Adjusting
Richard encourages clients to subscribe to the Banker Vault, the Nelson Nash Institute, and the Ascendant podcast.
Policy design improves with learning. He shares examples of changes he’d make to his own policies in hindsight.