Blog 76 – Guaranteed Cash Values In IBC Policies

A lot of our clients are concerned and ask many questions about the guaranteed cash values in IBC policies. We want to make absolutely sure that you understand all the assumptions behind the guaranteed values in these policies.

First Assumption: guaranteed cash values assume that no dividends are ever paid. The reality is that the companies that we use for Infinite Banking have paid dividends for 160 to 170 consecutive years including the Great Depression and two World Wars. Although this first assumption is mathematically possible, its probability is highly unlikely. If it were to happen, it would mean that the economy would be in such a bad state that the guaranteed cash values in your IBC policy would not probably be your greatest concern.

Second Assumption: the premiums for any riders in your policy are shown at their guaranteed maximum costs.

Third Assumption: the guaranteed cash values are based on a gross interest rate of 4.00%. The net interest rate is the vicinity of 2.00% and includes the cost of the death benefit, the operational cost of the insurance company, of which, by the way, you are an owner, and the cost of the commissions to the insurance professional who designed and sold you the IBC policy.

If you are really concerned about this worst-case scenario, you should compare the guaranteed cash values to the worst-case scenario of your qualified plan or of your investments in the stock market which is that you would lose a 100% of your money. Obviously, the guardrail of an IBC policy, includes a guaranteed death benefit, and it is substantially higher than the guardrail of any qualified plan or investment in the stock market.

If you would like to learn how you can grow a substantial amount of cash that you have access to at any time without penalties, is unrelated to the stock market, and will generate income that is not included in your tax return, visit our website at  or feel free to email us your questions at or call us toll-free at 1-844-443-8422.

Isis B. Palicio, LUTCF, MBA
Pedro A. Palicio, MBA, Ph.D.
Infinite Banking Concepts® Authorized Practitioners

We are experts in designing high cash value dividend-paying whole life policies.



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