Community Spotlight: Cornerstone Life, LLC
Photo credit: Cornerstone Life, LLC
Darrell Ellis, owner of Cornerstone Life, LLC, has always had a passion for helping people, whether through his early work as an EMT in Los Angeles or during his years in the tech industry. However, after two decades in tech, Ellis found himself seeking something more fulfilling. This search for a meaningful career shift led him to discover the powerful concept of infinite banking, a financial strategy built on the foundation of life insurance that has now become the cornerstone of his business.
“Infinite banking is using a very specially designed whole life policy from a mutual company, dividend-paying, a banking system for a family or business owner,” Ellis explains. His journey from tech to finance, and ultimately to founding Cornerstone Life, was driven by a desire to empower others with the same financial freedom that infinite banking had provided him.
Ellis’s career in tech began unexpectedly after working as an EMT right out of high school. “I was working in Compton and Inglewood—places where you saw a lot of crazy things,” he recalls. However, the pay wasn’t enough to support a long-term career, so Ellis took an entry-level position at a telecom company. That move shifted the direction of his career toward technology and sales, where he thrived for many years, gaining experience in security systems, business-to-business sales, and more.
Photo courtesy of Darrell Ellis
But after nearly two decades, burnout set in. With a plan to buy an alarm company, he shifted gears last minute and got licensed in insurance instead. “I knew I was going to hate my life if I bought that company. We did great, but I didn’t enjoy it… I’m kind of burnt out on tech. Why not try insurance?” That’s when a friend, who was a State Farm agent, suggested Ellis explore the world of life insurance. Although Ellis initially pursued this avenue, he quickly realized that the traditional property and casualty insurance model wasn’t his passion. However, when he discovered infinite banking, everything clicked.
At its core, infinite banking uses the cash value of a whole life insurance policy as a personal banking system. By overfunding the policy, policyholders can borrow against the cash value, creating a unique financial system that grows their money even while it’s being used. This concept, first popularized by Nelson Nash, has gained traction for its ability to provide tax-free growth, uninterrupted compounding interest, and flexible loan terms.
Ellis highlights the flexibility of the system: “In the policy, you never lose that compounding. It never isn’t interrupted. It’s never stopped. That’s the beauty of it.” The idea is simple yet powerful: policyholders borrow from the insurance policy’s cash value while it continues to grow, creating a compounding effect over time.
What makes Ellis’s approach through Cornerstone Life unique is his focus on helping business owners navigate their financial challenges using this strategy. Many business owners, especially in fields like construction or real estate, face cash flow challenges during economic downturns or slow seasons. Infinite banking allows them to maintain liquidity without the need for traditional loans, giving them a flexible and reliable emergency fund.
For instance, instead of applying for a traditional loan with high interest rates and rigid terms, business owners can borrow against their life insurance policy’s cash value. The policy continues to earn compounded interest and dividends, and the owner can set their own repayment terms without the pressure of bank-imposed deadlines. “You’re not at the mercy of a bank,” Ellis says. “You have control over your own money.”
This flexibility is a game-changer for entrepreneurs, especially those needing fast access to capital for unexpected expenses or investment opportunities. “My clients are often real estate investors,” Ellis explains. “They fund their policies, then use the cash value to buy real estate or equipment. Their money is growing inside the policy while they’re making a return on their investment.” This double benefit allows business owners to leverage their cash value for multiple purposes.
Ellis’s passion for infinite banking extends beyond helping business owners; he also sees it as a powerful tool for personal financial stability and estate planning. “If something happens to me, my family is covered,” Ellis notes. The death benefit from a whole life insurance policy provides a tax-free payout to beneficiaries, ensuring financial security for loved ones.
“I increased the money that was available to my family if something happens to me, and it’s not just if I die.” This long-term focus is what sets infinite banking apart from other financial strategies. While traditional savings accounts or investment vehicles are often subject to market fluctuations, the guaranteed growth within a whole life insurance policy offers peace of mind. Ellis explains, “The money you borrow is still growing, and if something happens, the death benefit covers any loans and leaves a legacy behind for your family.”
For families, this can be especially crucial during times of hardship. Whole life policies often include options for chronic care or long-term care, meaning policyholders can access funds for qualifying medical events like surgeries or extended medical treatments. “If something happens, you’re not just relying on savings or loans—you have access to the policy’s cash value,” Ellis emphasizes. This can alleviate financial stress during health crises or other emergencies, providing a critical lifeline.
Ellis’s journey to founding Cornerstone Life is as much about personal growth as it is about business success. From his early days as an EMT to his years in tech, he’s always been driven by a desire to make a difference in people’s lives. With infinite banking, he’s found a way to combine his business acumen with his passion for helping others achieve financial freedom.
Photo courtesy of Darrell Ellis
“I’ve been in the insurance business for about five years now, just under five. And I believed in it,” Ellis says. “It’s a system that helps you get ahead and stay ahead. My goal is to put as many dollars as I can that come through my hands through the policy first so that I make sure it grows uninterrupted for the rest of my life.”
For Ellis, the impact of infinite banking isn’t just theoretical; it’s deeply personal. He’s seen firsthand how it can transform lives, providing both immediate solutions and long-term financial stability. And through Cornerstone Life, he’s committed to sharing that knowledge with as many people as possible, helping them take control of their financial futures.
As Ellis continues to grow Cornerstone Life, his focus remains on helping both individuals and business owners gain control over their finances. Whether it’s creating a personal banking system for future investments or building an emergency fund that can weather any storm, Ellis is dedicated to empowering his clients with the tools they need to succeed.
“I’m a researcher. So, I read every book I can find on a subject when I want to do it. And that’s what I did with infinite banking,” Ellis says. “I want to do this because I believe in it. It’s a system that helps people gain financial control.”
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Oct. 31st, 2024