Becoming Your Own Banker – Page 9 – Universal Wealth Managers LLC

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.

2022 December BankNotes

“MEC” Defined: The acronym “MEC” is short for “modified endowment contract.” To say
that you “MEC”ed a policy means that you stuffed it with too much money and hence the IRS will now cease to classify it as a standard life insurance contract.

2022 November BankNotes

Conclusion: The reality is that the existence of policy loans against cash values dates back to the mid-1800s, but the life insurance industry has never vigorously promoted them.

Blog 92 – Addressing People’s Concerns About The Infinite Banking Concept

Capitalization Phase. The difference between the cumulative premiums paid and the cash values during the first few years of the policy is due to the initial cost of setting up the death benefit and the compensation to the financial professional who designs, sells, and will service the policy for years to come. This is what Nelson Nash calls “the capitalization phase of the policy”. It is the year that your IBC policy becomes profitable, and the profitability of your policy is contractually guaranteed to increase every year.

2022 October BankNotes

There are many reasons for believing that a dividend-paying whole life insurance policy from a mutual insurance company is one of the last remaining bastions of safety and growth for our savings here in the United States.

Blog 91 – What Does It Take To Implement The Infinite Banking Concept Successfully?

We get the following question quite often from prospects: What does it take to implement the Infinite Banking Concept (IBC) successfully?

Blog 90 – Infinite Banking And High Inflation

With financial news reporting higher inflation due to our over-inflated government and too much money being printed, it is understandable that many people are seeking ways to personally combat the effects of inflation on their lives.

2022 August BankNotes

Whatever we may say against or in favor of this idea, the positive thinking movement in 2017 is a multi-billion-dollar industry, which rides the crest of an overarching mantra that preaches that positive thoughts create and transform reality. What I was most surprised to learn from this study was that positive thinking is a uniquely American idea, which had its beginnings in 1820.

Blog 89 – Dividends In IBC Policies

An IBC policy is a dividend-paying whole life insurance that you obtain through a mutual company, rather than a stock company. Mutual life insurance companies share their profits with participating policyowners via dividends.

2022 July BankNotes

After completing last Month’s article in the LMR on the multi-millionaire Spencer Hays, I was moved to undertake an extensive study on the one thing that he had obviously perfected the art of positive thinking.