Blog 103 – Continuous Compounding Of Your Cash Value

Pedro Isis Portrait Pictures

The cash value in your Infinite Banking, or IBC policy, continuously compound. In fact, the cash value grows exponentially based on the interest and dividends allocated to your insurance contract. The meaning of exponential growth is that the growth is not the same every year but that it increases every year, and this is a very good thing

For example, let’s assume that interest and dividends are providing your insurance contract a growth of 5% per year. If you start with a cash value of $100.00, at the end of year 1, you will have $105.00; at the end of year 2, you will have $110.25; at the end of year 3, you will have $115.76; and at the end of year 4, you will have $121.55. Now, let’s prove that the growth in cash value increases every year: from the start to the end of year 1, the growth was $5.00; from the end of year 1 to the end of year 2, the growth was $5.25; from the end of 2 to the end of year 3, the growth was $5.51; and from the end of year 3 to the end of year 4, the growth was $5.79 so you can see that the growth increases every year.

The annual break-even of the cash value in your IBC policy is the year in which the increase in cash value in that year is equal to or greater than the premium paid to the policy in that year, and it can be as early as the second policy year. What this means is that from this point in time on, every dollar that you pay in premium translates into more than a dollar in cash value. Also remember, this growth is locked in, unlike growth in stock and real estate which fluctuates depending on market conditions.

Wouldn’t you like to own a financial contract called an IBC policy where at the end of the year the increase in cash value is greater than your premium contribution to the contract that year, guaranteed year after year? Now, if you own such a contract, wouldn’t you like to contribute to it as much premium as you can for as long as possible? We think you should.

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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