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”.
The Infinite Banking Concept is an excellent cash flow management strategy, and this strategy is implemented through the design of a high cash value whole life insurance policy from a top-ranked mutual life insurance company. Why is it an excellent cash flow management strategy? Well, it provides you with a safe and secure place to store your money, while keeping maximum liquidity, access, and control.
Most of the IBC policies that we design have two types of PUA riders: scheduled PUAs that are included in the annual or monthly premium that is paid, and unscheduled PUAs that vary annually by policy year from $0 to the difference between the 7-pay premium or MEC limit for the policy and the total annual premium for the base whole life policy and the scheduled PUAs.
The best way to increase the cash value efficiency of your IBC policy and therefore, increase your wealth is to contribute as much as possible in unscheduled PUAs every single policy year. For that, you can use additional disposable income, bonuses, and other windfalls.
The new whole life insurance products have lower guaranteed interest rates, which makes the spread between the guaranteed interest and the dividend rate much larger and since in most cases dividends are reinvested into the polices to buy more PUAs, the policies, long term have more cash value and give the client more money in retirement. The life insurance industry is in good financial strength, and we have now seen evidence that it continues to innovate and deliver excellent whole life products.
