Infinite Banking in Coral Gables

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 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 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.

Blog 88 – Effect Of Higher Interest Rates On Non-Direct Recognition Contracts

Direct recognition versus non-direct recognition is more a game of smoke and mirrors used by insurance companies and marketing organizations themselves to keep your focus away from what is important.

Blog 80 – The Design Of Infinite Banking Policies

The design of high cash value, dividend paying whole life insurance policies, or Infinite Banking (IBC) policies, has two phases. The first phase consists of policy blending, heavy use of paid-up additions, and the typical 10/90 or 20/80 split between the premium going to the base whole life policy and the premium going to the paid-up additions rider. This first phase is quite consistent from case to case and the only variability might be in the premium split due to the total amount of premium (annually or monthly) to be paid, and design restrictions from the insurance company we are using.

2021 October BankNotes

I spend a lot of time motivating difficult financial topics by constructing “thought experiments.” In a thought experiment, you can only focus on one or maybe two moving parts, while holding everything else constant. This is the
way to isolate the impact of the factor you want to understand. However, it means the whole exercise is necessarily unrealistic

2021 September BankNotes

In his classic work Becoming Your Own Banker, Nelson Nash claims that the standard approach to life insurance has things backwards. Consumers have been taught to get their desired death benefit for as little outlay as possible.

2021 August BankNotes

Nowadays the average American has been taught to believe that a very responsible financial strategy is to plunk as much of his paycheck every month as possible into a “diversified” and “conservative” mix of stocks and, if he wants to really play it safe, to mix in some government bonds. Naturally the acme of savvy saving is supposed to be a tax-qualified vehicle such as a Roth IRA for the self-employed, a 401(k) for salaried employees, or a 403(b) for educators.
In the 20th century, households used actual savings accounts at the bank—which were distinct from checking accounts. Households also invested directly in bonds and life insurance.

Blog 79 – When To Pay Cash And When To Use A Policy Loan

One of the questions we more often have from our clients is: Should I pay for this expenditure with the cash I already have in my conventional bank account, or should I first deposit that cash as an unscheduled PUA contribution to my IBC policy and then use the cash from a policy loan to purchase the needed item? What they are really asking is if there are any special conditions or guidelines they should consider before deciding whether to use cash or a policy loan for their expenditure.

Call Now Button