Questions & Answers:
What is Infinite Banking?
It is a process that combines sound economic principles with IRS rules and contractual guarantees found in permanent life insurance.
It provides you with ready available cash for emergencies and opportunities.
Allows you to recapture most of your payments in your big purchases, like cars, vacations, school tuition, equipment, etc.
By using your own capital (cash value), to finance those items you will find that when you finish paying your loans to your policy, most of the money is back in your pocket.
It turns into a supplemental tax free income stream that you can never outlive. There are many more additional benefits.
Banking is the only process that allows you to do that.
There is a problem in the way we have been taught to manage our money, in how we save(if we save any), and how we buy our things.
We need to fix that to get out of financial prison, we need to adopt a process where we start saving and buying our things in a way that our choices and actions benefit us and not the banks, the financial institutions and the government.
Learning to do banking for your own benefit is what will totally change the environment in which you use your money. You can do banking using many tools but we are recommending the best tool of all.
There are reasons for it and you will learn them reading on.
The fact is, when we believers and followers of the IBC chose a permanent life insurance dividend paying mutual company structure to host our banks; we were looking for the benefits offered by a combination of tax laws and regulations, contractual insurance laws and guarantees, and proven sound economic principles.
What are the benefits?
1- Tax deferred
2- Tax free use
3- Competitive IRR
4- Guarantee growth
5- Creditor Proof
6- High Contribution limits
7- Liquidity, use and control (Access to capital and options)
8- Collateral
9- Estate tax free
10- Disability protection
The insurance death benefit part is extremely important although it is not our main focus.
I heard that this is a scam or in the best case, it is a very smart way to sell expensive Life Insurance, that it never works and that there are much better ways to grow my money…Any comments?
Well, there are different points to consider here:
1st. Those advisers do not know anything about the Infinite Banking Concept, and they just want to make more money by selling you term life, and investing the rest of your money on several commission able products.
They do not know that in becoming your own banker you can take advantage of the same strategies banks use. They do not know you can benefit from the Velocity of Money when you bank on your cash value.
They do not know that you can pay yourself with Volume of interest instead of nominal interest.
They do not know that you can profit from Arbitrage; and they do not know that you can minimize your Lost Opportunity Cost, by obtaining several rates of return from the same block of money when you bank on your cash value.
2nd. Those promoters of "buy term and invest the rest" do not show their clients the reality of the very high cost of renewing insurance in your older years when you need it most, (You do not have to renew with whole life). They do not factor the Lost Opportunity Cost when affirming that Term is way cheaper than Whole Life.
3rd. Life Insurance has been marketed (sold) wrong from the beginning.
Analyze this:
Needs: If you have to have something that you do not want! How much do you want to spend to get it?...Yeah, I know: nothing, or the least amount of money possible.
Wants: If you want to have something, how much are you willing to pay for it? I know that one too…Whatever it is.
Economic Structures; Lets create a model…
1st . Minimum capitalization, (very little money) carrying a humongous expense (Highest Life Coverage). This structure at the slightest problem can break apart. This is how regular Life Insurance has been and it is always sold.
2nd. Maximum capitalization, (Lots of money) carrying a tiny expense(Little Life Coverage). This structure practically runs by itself and has the ability to sort many problems. This is how the Infinite Banking Concept™ is offered.
The fact is that even though the Insurance is little at the beginning by design, it becomes huge as time goes by.
When it is time for you to pick up the fruits of your seeds, you will be happy that you implemented this process (Infinite Banking Concept) in your economy and life.
The bottom line is, if you have or you find a vehicle to handle your money, better than this one, knock yourself out!
Only the IBC is where:
* You have access to your money anytime without penalties or restrictions.
* Your money is safe and protected from creditors and law suits.
* It grows with maximum efficiency(Velocity of Money, Volume of Interest, Compounded Interest, Arbitrage and minimizing Lost Opportunity Cost).
* It grows on a tax deferred/free environment and on top of that, It comes with Life Insurance Protection (just in case).
So how can you profit from the IBC?
By implementing your own personal banking system now you have a platform that you can go back to it to retrieve or deposit your money anytime you want no questions asked, the only restriction to withdraw is that you have enough money in it like in a checking account.
You can borrow to buy your cars, pay for your vacations, projects, investments, College etc. If in business, borrow from it to buy equipment, use your bank as your lessor and the only rule is pay back with enough interest to offset your overhead. You do not even have to pay right in schedule, but as long as you pay back accounting for the time value of your money.
You pay high interest in your credit cards and loans that you take from others, just treat your personal bank in the same way and you will be the beneficiary of that high interest.
The cash value of your life insurance is your capital to use, as long as you treat it with respect and professionalism like your corner bank or your neighborhood financial company does, you will be OK.
So you can use your personal banking system based on your life insurance through-out your life for your financial needs and at the same time you will be enjoying the protection that assures that your loved ones will receive your legacy and won't be left with the unexpected burden of unfinished business and missing your contribution.
Look at all the benefits and advantages presented to you by a Whole Life Insurance Policy engineered to perform according to the Infinite Banking Concept:
Now that you are better informed, find out if you qualify to become your own banker. Fill the following contact form to receive a Financial Questionnaire:
