When purchasing a whole life insurance policy, even if it is not going to be used for banking purposes, be sure that a substantial amount of paid-up additions is included in your policy. There are two main reasons for our advice. The paid-up additions increase the efficiency of your policy in the sense that you … Read more
Yes, they are, but let me give some introduction before explaining why Paid-Up Additions are so great. A properly-designed Infinite Banking Concept (IBC) or banking policy originally maximizes the cash value that you obtain for a given premium while the death benefit eventually increases to be higher than in a traditionally-designed policy. This type of … Read more
First of all, let me explain what wealth transfers are. This is money that is being spent and can never be recovered. The major wealth transfers are: • Taxes • Interest paid to others • Investment losses Here is how a Dentist, one of our Infinite Banking clients, dealt with these wealth transfers through the use of his … Read more
Since 401-k plans are the most common option for Americans to accumulate funds for retirement, I would like to compare them to an IBC policy on four key elements. A) Taking a loan. When you take a loan from a 401-k plan, it involves liquidating assets from your plan and therefore, you will immediately stop … Read more
By: Dr. Robert P. Murphy Radio talk show host Dave Ramsey has made a national name for himself guiding people out of debt. I occasionally listen to his show (Ramsey and I both live in Nashville), and I applaud much of what he tells his listeners. In particular, Ramsey stresses the importance of having a … Read more
As we all know, capital purchases are unavoidable expenses and we define capital purchases as those that we cannot accommodate through our weekly or monthly cash flow. A typical capital purchase may be a car, a college education, a wedding, or an exotic vacation.One of the greatest living benefits of a properly-designed IBC or banking … Read more
A traditionally-designed whole life policy originally maximizes the death benefit that you obtain for a given premium while the cash value is originally very small or non-existent. This type of design is encouraged by most insurance agents and broker-dealers because it generates better commissions for them, but it doesn’t do much for you as a … Read more
By: L. Carlos Lara Becoming Your Own Banker, by author R. Nelson Nash is an extraordinary book. And yet, it’s not actually a book as much as it is a book-let. A mere one hundred and seven pages in its entirety, it dispenses wisdom and logic of a kind that only an individual who has … Read more
The terminology of direct recognition and non-direct recognition refers to the method that the insurance company uses in treating dividends when there is an outstanding policy loan. As we explained in a previous blog, when you take a policy loan, you are borrowing against your cash value, using it as collateral for your loan. The … Read more
By: Dr. Robert Murphy When people first hear about the advantages of the Infinite Banking Concept (IBC), a typical reaction is to say, “That’s too good to be true.”For example, the IBC agent might tell his or her client that in order to take out a loan against the cash values in a whole life … Read more
