How Life Insurance Built Disney

Infinite Banking

How Walt Disney Became His Own Bank

They say if it doesn't make you afraid, your dream isn't big enough.

Well, Walt Disney's dream of building a massive theme park scared banks. They saw it as too risky and outlandish. When he went to get lending to open his amusement park, the banks turned him down.

But Walt was no stranger to rejection, hard work and opposition.

Having to wake up at 3:30 am to work his paper route at the age of 10; being fired from a local newspaper for lacking creativity; overcoming bankruptcy and a mental breakdown; and being rejected 300 times by financers for his Mickey Mouse and amusement theme park concept: were all creating a resiliency and grit in Walt that made him determined to succeed.

Refusing to take their "no" as a final answer and desperate to see his vision come to life, Walt Disney found another option to fund his dream; he pulled $50,000 of accumulated cash value out of his life insurance policy, (in today's value this would be over half a million dollars) and combined it with the sale of his second home in order to build Disneyland.

Because of Walt's determination and grit, and his knowledge of how to use his life insurance as leverage to fund his business; Disneyworld is now one of the most visited places on earth, with an average attendance of almost 60 million people a year. And it's the country's largest single site employer.

So, the next time you get a "no" or a closed door, remember Walt Disney's advice: “You may not realize it when it happens, but a kick in the teeth may be the best thing in the world for you.”

“I could never convince the financiers that Disneyland was feasible because dreams offer too little collateral," said Walt.

Other Entrepreneurs Who Used Life Insurance to Help Their Business

James Cash (JC) Penney had become successful running his department stores and had diversified his money in the stock market and Florida real estate. However, in 1929 when the stock market crashed it plummeted the real estate market and caused banks to fail by the thousands, as panic set in and the masses began demanding their money; sending the U.S. into the Great Depression.

Fortunately, JC Penney had gotten a life insurance policy, in which he was able to pull enough cash value out of to maintain payroll and sustain his business. Ultimately, he recovered and left behind an estate of $35 million to his loved ones.

Ray Kroc, best known for expanding McDonald's into the world's most profitable restaurant franchise in the world; also used the cash value from two of his life insurance policies in order to sustain his business and overcome his cash flow problems in the beginning stages of growing his business.

He used the money to make payroll, as well as for a marketing campaign for Ronald McDonald. Today it has 38,000 locations worldwide and a net worth of over $200 billion.

Pampered Chef Founder, Doris Christopher, used $3,000 from the cash value of her life insurance policy to start her kitchenware company. Her company was later bought by Warren Buffet's Berkshire Hathaway for reportedly $900 million, and is one of America's top direct selling companies.