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Blog 62 – Everything You Ever Wanted To Know About Paid-Up Additions – Part 1

In this blog we are going to concentrate in the definition of paid-up additions and in future blogs we will be going deeper into the types of paid-up additions riders and how to use them to maximize the cash values of your whole life policies.

Paid-up additions are mini paid-up whole life policies that attach to your base whole life policy. They have a death benefit and a cash value and as its name implies, they require just one single premium payment and they are forever paid-up. In other words, you keep the death benefit of the paid-up additions and its cash value without ever paying any additional premiums.

Blog 61 – Happy New Year, Happy New Decade

Although you may be discouraged of your progress in some areas, we are sure that you will be proud of your accomplishments in other areas, and perhaps one of them for many of our clients is your success towards achieving financial independence.

We define financial independence as a financial situation in which you have enough money set aside to take care of unexpected financial challenges and also enough money to take care of opportunities that become available to us. Believe us, when you have money available, opportunities are constantly knocking at your door.

Blog 60 – Use Infinite Banking To Create Sustainable Wealth

The Infinite Banking Concept is a process in which you accumulate cash value in a properly-designed whole life insurance policy. This cash value is used as an emergency/opportunity fund.
At any time, your cash values are doing double duty: they allow you to leverage them into other assets and at the same time they continue to earn interest and dividends for you.

Blog 59 – Financial Self-Reliance Helps You Build Bullet-Proof Wealth

Are you financially self-reliant? If not, decide to develop your own financial stability through taking control of your earning power, developing multiple streams of income, saving all you can, and concentrating on reliable investments with known or guaranteed returns. That way, even in times of stormy economic weather, you will find yourself on solid ground.

Blog 58 – Using Your IBC Policy To Supplement Your Income

You should start by withdrawing funds from your investment accounts. In any year in which your investment account loses market value, the following year you don’t withdraw funds from that account but instead you withdraw funds from your IBC policy.

Blog 57 – Taking A Loan From Your IBC Policy

There is a lot of confusion in internet blogs about borrowing or taking a loan from your IBC/Banking policy. Let us make it absolutely clear that when you take a loan from your IBC policy what you are receiving is money from the general account of the insurance company that issued your policy, collateralized by the cash value of your policy.

Blog 56 – Efficiency Versus Flexibility In The Design Of IBC Policies

Those of you familiar with Nelson Nash’s “Becoming Your Own Banker” know that to obtain efficiency in the generation of maximum cash values in your IBC policy, you should design it as close as possible to the MEC line.

On the other hand, if you follow Nelson’s teachings, you also know that when you take a policy loan against the cash value of your IBC policy, you should repay your loan at an interest rate comparable to the one that an alternative source, let’s say a credit card, would charge you. The dollar difference between this rate and what the insurance company is charging you, should be deposited in your policy as an additional contribution to your PUA rider. This means that you should have enough capacity in your PUA rider to accept this additional contribution. But wait a minute, if you have built this additional capacity in your policy, it means that it is not as close as possible to the MEC line for maximum efficiency. How do you solve this dilemma?

Blog 55 – Infinite Ways To Use Infinite Banking Policies

When we meet with clients and potential clients via phone, Zoom meetings, or in person, we always ask how they plan to use their IBC policies and most times they ask for recommendations based on their specific situation.

We always recommend that the cash value be divided into two funds: the emergency fund and the opportunity fund.

Blog 54 – Designing Your Banking Policy

Everybody wants to know what makes the banking policy or Infinite Banking policy different from other types of life insurance policies and how do they go about designing the right policy for them. Now, here is the secret: the policy designer should take into consideration all the observations indicated below.

The designer first starts with a dividend-paying whole life insurance policy from a mutual insurance company.  When designing a banking policy or Infinite Banking policy, you don’t specify the desired death benefit, but the annual or monthly contributions that the owner will be comfortable making to such policy.

Blog 53 – The Impact Of Financial Mistakes

Have you ever made a big financial mistake? You’re not alone. According to a Consumer Federation of America report, 67% of middle class American consumers (those with annual incomes of $30-100,000) owned up to a “really bad financial decision”, resulting in an average loss of $23,000.

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