Blog 97 – Nelson Nash’s “Becoming Your Own Banker”
In this blog, we are going to cover many of the truths in Nelson Nash’s “Becoming Your Own Banker”.
2023 March BankNotes
Privatized BANKING: WE ALL NEED IT – By L. Carlos Lara
What so many people do not realize is that the bestype of health coverage can be obtained by the oldest and original insurance policy in America, the Dividend Paying Whole-Life Insurance Policy. In fact, it is the best kept secret in America. Whole-Life not only pays a death benefifit to the insured’s benefificiaries at death, but it also provides the insured living benefifits while alive. In fact, this is what it does best.
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.
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 93 – Have a Happy Thanksgiving from our family to yours!
There are many traditions that come with this day, but the more popular are: spending time with family watching football or the Macy’s Thanksgiving Day Parade, making wishes out of wishbones, unique traditions, decorations, and recipes to go along with Thanksgiving dinner. Whether you have Cornish game hens or oven-roasted turkey, there are many ways to celebrate this holiday.
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.