“We Develop Solutions That Create Value” has been the tag line to our emails since 2008. That was the year when we decided to abandon traditional financial planning advice and concentrate uniquely in creating value by implementing the Infinite Banking Concept (IBC). Since then, we have designed thousands of IBC policies which are high cash value dividend-paying whole life insurance policies issued by the top mutual life insurance companies. We use the terms “value”, “cash value” and “capital” interchangeably.
How do we generate value from an IBC policy? One of the components of an IBC policy is a Paid-Up Additions Rider to which you contribute a premium. That premium minus a small charge results in an identical increase in cash value and an increase in death benefit. The death benefit increase is a multiple of the increase in cash value and it depends on the insured’s age, gender, and lifestyle.
During the second to fourth policy year, we notice that the total increase in cash value during any of those years is higher than the total premium paid in that year. That being the case, wouldn’t it make sense to pay as much premium as you can afford since you are creating more value, just by paying your policy premiums?
When dividends are paid to your policy, those dividends go, in general, to purchase Paid-Up Additions, but in this case, there is no small charge taken and the total amount goes to increase your cash value and your death benefit as explained above.
Most of the policies we have designed, allow you to pay an amount to the Unscheduled Paid-Up Additions Rider that would substantially increase your cash value without the risk of your policy becoming a Modified Endowment Contract (MEC). We encourage you to pay as much as possible into this rider to increase your wealth. You are welcome to contact us at papalicio@uwmanagers.com if you want us to tell you the maximum contribution that you can safely make to your policy.
Another way to increase the cash value of your IBC policy is to identify those annual payments that you have to make to an outside source like to pay taxes to the IRS or to pay your mortgage to the mortgage lender. You then contribute the total of these amounts to your Unscheduled Paid-Up Additions Rider and at the end of the year you take policy loans to make these payments to the outside sources. From the following year on, you start making payments to your policy loan to replenish its value and you repeat the process every year. This makes your policy to substantially grow your cash value.
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 http://InfiniteBankingSimplified.com/ or feel free to email us your questions at ContactUs@InfiniteBankingSimplified.com 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.