John Doe is a male, age 36, non-smoker and in excellent health, paying $30,000 a year for 20 years to an Infinite Banking Concept (IBC) policy. See attached highlights of that illustration.
Assume that in policy year 7, John comes across a great opportunity in real estate that needs an investment of $200,000. John has two alternatives. In Alternative 1, John takes a $200,000 policy loan at a 5% annual interest rate and he pays the loan back in 8 years, from policy year 8 to policy year 15. In Alternative 2, John takes an identical loan from a traditional bank.
Let’s analyze Alternative 1: As you can see, the Total Cash Value Growth is greater than the Total Interest Paid.
Let’s analyze Alternative 2: The Total Interest Paid becomes a profit, not to you, but to the traditional bank.
In conclusion, you should recognize that controlling the banking function personally is the most important thing that can be done in your financial world. Also remember, that there is no such thing as “having too much money in the bank.” Wealth must reside somewhere. What better place to have it reside than in an IBC policy?
Do you have other policy design questions that we have not covered here? If you do, please contact us at ContactUs@InfiniteBankingSimplified.com We answer all your questions accurately and within 24 hours!
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.