What Is Hybrid Arbitrage?

Hybrid Arbitrage combines GPS debt technology with Index Universal Life Insurance (IUL), specifically Private Owned Life Insurance (POLI). This powerful solution enables individuals, families, and business owners to "bank like banks" while eliminating debt and building wealth. Unlike traditional methods like Infinite Banking or Velocity Banking, Hybrid Arbitrage uses modern IRS code advantages (7702 & 101a from the CARES Act 2020) to make financial security achievable for everyone.

For years, many of us, myself included, have been misled by traditional financial advice. We were taught to buy term life insurance and invest the difference in mutual funds or avoid paying off mortgages early to take advantage of “cheap money.” Advisors and “gurus” promoted these ideas, often based on incomplete information. However, I’ve since discovered a smarter, safer approach:

How It Works:

  1. Debt Payoff: GPS technology efficiently directs funds to eliminate debt and reduce interest by up to 75%, without refinancing or consolidation.
  2. IUL Integration: With an IUL policy, your money earns tax-free interest while remaining accessible. You borrow against the policy without ever “losing” the capital, making your money work for you even as you pay off liabilities.
  3. Long-Term Growth: Your IUL becomes a self-sustaining financial tool, providing tax-free compounding growth while allowing you to bank like the wealthy.

We've Been Fooled. Traditional financial advice focuses on averages, not actual outcomes. Consider this: the “average rate of return” touted by mutual funds doesn’t account for market timing or compounded losses during downturns. In contrast, an IUL ensures principal protection, meaning your money grows every year without market losses.

Why Hybrid Arbitrage Outperforms Traditional Financial Advice

Term Insurance Myth: Many financial advisors promote term insurance because of its lower premiums. But what happens after the term expires? You’re left without coverage and have paid premiums for nothing. With an IUL, you secure permanent coverage and build cash value simultaneously.

Home Equity Misunderstandings: Advisors often discourage paying off your mortgage early, claiming equity is “dead money.” Hybrid Arbitrage turns this logic upside down by allowing you to pay off your mortgage early while leveraging the equity for tax-free growth.

Historical Perspective: Many successful individuals and institutions have used life insurance to build wealth. For example, J.C. Penney relied on his whole life insurance policy to save his business during the Great Depression. Similarly, major banks hold billions in BOLI (Bank Owned Life Insurance), a strategy you can replicate with POLI.

Key Benefits of Hybrid Arbitrage:

  • No Market Risk: Your IUL cash value is protected from stock market volatility. When markets crash, your money remains intact.
  • Guaranteed Growth: Your account grows yearly, regardless of market performance, with rates typically ranging from 2-4% tax-free.
  • Tax Advantages: Access your cash value anytime, for any reason, without penalties or taxes—unlike 401(k)s or IRAs.
  • Debt Elimination: Pay off mortgages, student loans, and other liabilities faster while turning them into income-generating assets.
  • Wealth Building: Create a personal banking system where you earn interest on your loans and never pay it back.