Becoming Financially Independent

Blog 106 – The Ins And Outs Of Policy Loans 

When you take a policy loan, the money does not come from the cash value of your Infinite Banking Concept (IBC) policy, but from the general account of the insurance company, and your cash value remains in your policy earning interest and dividends.

2023 October BankNotes

Also relevant to this article is this perspective. According to the Tax Policy Center roughly 80 percent (of revenue for the federal government) comes from the individual income tax and the payroll taxes that fund the social insurance programs.

2023 September BankNotes

—Adam Smith, An Inquiry into the Nature & Causes
of the Wealth of Nations. Volume I, 17591
Within this quote by Adam Smith resides the
fundamental premise for the creation of the IBC
Practitioner Program for financial professionals.

Blog 104 – Why Not Universal Life For Infinite Banking? 

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.

Blog 96 – When Life Throws You A Curve

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.

Blog 95 – Pay Cash Or Take A Policy Loan?

“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?”

2023 January BankNotes

OPTION VALUE EMBEDDED IN WHOLE LIFE POLICY
One obvious difference between a whole life policy and a term policy with the same death benefit, is that the former gives the policyholder the option to maintain coverage for life. (This after all is the reason we call it “permanent life insurance” and the plain vanilla “whole life” policy.)

Blog 94 – Misunderstandings About Whole Life And IBC Policies In Particular 

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.

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