Whole Life Insurance: Since most of us either do not want or cannot afford to pay premiums to such advanced ages, or in case of a financial emergency, there are several options to stop premium payments earlier. These options are Automatic Premium Loan, Premium Offset and Reduced Paid-Up. Let see how we can use these options, their advantages, and disadvantages.
“Should we pay for this with the cash we have sitting in our bank account, or should we first put that cash in our IBC policy and then take a policy loan to purchase the needed item?”
As always, we want to educate our clients and prospects on the details necessary to design and understand the mechanics of an IBC policy. In a typical situation, we would have an individual who wants an IBC policy contributing a certain amount of dollars a year (the annual premium) for so many years. Depending on the individual’s gender, age, health status, and lifestyle, you need a death benefit of at least a certain amount of dollars to avoid the IBC policy from becoming a Modified Endowment Contract (MEC) and losing the tax-free distributions advantages.
There are many traditions that come with this day, but the more popular are: spending time with family watching football or the Macy’s Thanksgiving Day Parade, making wishes out of wishbones, unique traditions, decorations, and recipes to go along with Thanksgiving dinner. Whether you have Cornish game hens or oven-roasted turkey, there are many ways to celebrate this holiday.
Capitalization Phase. The difference between the cumulative premiums paid and the cash values during the first few years of the policy is due to the initial cost of setting up the death benefit and the compensation to the financial professional who designs, sells, and will service the policy for years to come. This is what Nelson Nash calls “the capitalization phase of the policy”. It is the year that your IBC policy becomes profitable, and the profitability of your policy is contractually guaranteed to increase every year.
We get the following question quite often from prospects: What does it take to implement the Infinite Banking Concept (IBC) successfully?
With financial news reporting higher inflation due to our over-inflated government and too much money being printed, it is understandable that many people are seeking ways to personally combat the effects of inflation on their lives.
An IBC policy is a dividend-paying whole life insurance that you obtain through a mutual company, rather than a stock company. Mutual life insurance companies share their profits with participating policyowners via dividends.
Direct recognition versus non-direct recognition is more a game of smoke and mirrors used by insurance companies and marketing organizations themselves to keep your focus away from what is important.
If you purchase an Infinite Banking policy to create sustainable wealth, you must think and act all the time as a banker to obtain optimal results. The best way to reach that state is to read and reread Nelson Nash’s “Becoming Your Own Banker”.
