How The Infinite Banking Concept Is Different From Other Strategies
Quite often, clients and prospects ask us about the difference between “The Infinite Banking Concept” and “Bank On Yourself”, “The Perpetual Wealth Strategy”, “The Perpetual Wealth Code”, “The 770 Account”, “Private Family Banking”, “Private Family Financing”, “Missed Fortune” or “Living Benefits”.
As we have explained before, it all started with The Infinite Banking Concept which was developed in a flash of revelation by Nelson Nash in the early 1980s and was penned in the 92-page best-selling book “Becoming Your Own Banker – Unlock the Infinite Banking Concept” published in 2000. All the other strategies, similar, but not identical to “The Infinite Banking Concept”, have been developed through the years by Field Marketing Organizations and insurance agencies with the purpose of conveying to the public the feeling that they were the ones that developed the concept and in the process increase their sales of life insurance. Unfortunately, some of these companies specialize in sales and concentrate mostly on teaching their agents sales techniques and very little is taught about the proper design and use of these policies.
For example, there are non-direct recognition mutual insurance companies where the cash values in the whole life policies grow by a guaranteed amount plus the non-guaranteed dividend, independently if part of that cash value is used as collateral for a policy loan. In direct recognition mutual insurance companies the cash values in the whole life policies also grow by a guaranteed amount plus the non-guaranteed dividend, but this dividend is reduced for the portion of the cash value that is being used as collateral for a policy loan. The position of The Infinite Banking Concept is that we should use the insurance company and product that best matches the client’s financial goals, independently of the insurance company being direct recognition or non-direct recognition. The position of Bank On Yourself, for example, is not to use direct recognition insurance companies since they have a selling agreement with a non-direct recognition insurance company. Another difference is that Infinite Banking Concepts Authorized Practitioners are free to offer clients whole life policies from any mutual company that they wish since Infinite Banking Concepts is neither a marketing organization nor it is affiliated with any insurance company. Bank On Yourself, on the other hand, allows their agents to offer clients whole life policies from only a couple of mutual companies with whom Bank On Yourself’s Marketing Organization has selling agreements.
We are very proud of being Infinite Banking Concepts Authorized Practitioners. We were initially approved by the Nelson Nash Institute Board of Directors to become Practitioner students. We went through a very rigorous training and testing program and upon graduation, we signed a contract stating clearly that when a client comes to us through the Nelson Nash Institute we will not sell them anything but an “Infinite Banking policy” as defined below. Additionally, we are required to take ongoing courses and seminars to continually increase our knowledge of the economic environment and develop new applications for the Infinite Banking Concept.
You may ask, what is an Infinite Banking policy? It is a specially-designed high cash value whole life policy from a mutual life insurance company. We are appointed with several mutual life insurance companies, and after we meet with a client and clearly determine his/her financial goals, we design the whole life policy from the insurance company that best matches the client’s goals.