Infinite Banking is an economic concept developed by Nelson Nash. It is based on the principle that you “finance” everything you buy, since you either pay interest to someone else or if you pay cash, you give up interest you could have earned. IBC is all about how to create your own banking system so you can control 100% of your financing needs.
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!
The cash value in your Infinite Banking Concepts (IBC) policy is guaranteed to increase every single year by a contractually set amount regardless of what happens in the stock market. Those guaranteed cash value increases that you receive are based on the “worst case” income and expense scenario projected by the insurance company and assumes no dividend is declared ever again. When the insurance company’s performance in any given year is better than that, you will receive a dividend. Although dividends are not guaranteed, the companies we use have paid dividends every year for over 170 years, including the Great Depression and two World Wars.
On behalf of Universal Wealth Managers LLC, we want to take a moment to wish you and your family a happy, safe, and enjoyable holiday. As we reflect on the freedoms that this day represents, we are grateful for the opportunity to serve you. Happy Fourth Of July 2023!
Isis and Pedro Palicio
If you are using the Infinite Banking Concept (IBC) to wean yourself off bank loans, why in heaven’s name would you take a bank loan when you could take an IBC loan?
The terminology of direct and non-direct recognition refers to the method that the insurance company or insurance contract uses in paying dividends when there is an outstanding policy loan.
Do you realize that IBC is all about how to create your own banking system so you can control 100% of your financing needs?
Once you control 100% of your financing needs, you won’t be paying interest to outside banks, finance, and credit card companies, but to a financial instrument that you own and control – your IBC policy.
Nelson Nash’s “Becoming Your Own Banker” emphasizes the fact that you “finance” everything you buy. You either pay interest to someone else, or if you pay cash, you give up interest that you could have earned.
In this blog, we are going to cover many of the truths in Nelson Nash’s “Becoming Your Own Banker”.
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.
