Infinite Banking Simplified

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Blog 84 – New Whole Life Insurance Versus Old Whole Life Insurance

The new whole life insurance products have lower guaranteed interest rates, which makes the spread between the guaranteed interest and the dividend rate much larger and since in most cases dividends are reinvested into the polices to buy more PUAs, the policies, long term have more cash value and give the client more money in retirement. The life insurance industry is in good financial strength, and we have now seen evidence that it continues to innovate and deliver excellent whole life products. 

2022 February BankNotes

We are specifically discussing a tax strategy that calls for taking the cash flows that are already earmarked for paying your taxes and re-routing them through a correctly designed IBC policy that has the capacity to adjust to your particular situation and provide the freedom to not be dependent on outside bankers. As before, I want to emphasize that this idea does NOT reduce your tax liability—I am simply presenting options for people to redirect cash flows that would occur anyway.

Blog 83 – The Financial Strength Of Life Insurance Companies

In 2020, life insurance companies had a huge expense that far exceeded their expectations. It was a sharp increase of 15.4% in death benefit claims. This was the largest annual increase the industry has experienced over the last 100 years when we were affected by another pandemic.

2022 January BankNotes

I can incentivize you do just that by showing you a way to fund a large
Infinite Banking Concept (IBC)-type life insurance policy, while using cashflows that are dedicated to paying your taxes.

2021 December BankNotes

A common method of showing the public the power of Nelson Nash’s
Infinite Banking Concept” (IBC) is to stress its feature of “constant
compounding.” In contrast to many other asset classes, dividend-paying
Whole Life insurance always increases in value. Indeed, some proponents of
IBC enthusiastically declare: “There’s nothing else like it!”

Blog 82 – Wealth Through Infinite Banking

The Infinite Banking Concept is an excellent cash flow management strategy that is implemented through the design of a high cash value whole life insurance policy from a top-ranked mutual life insurance company.
To successfully implement Infinite Banking, it requires patience, discipline, and long-range planning. An Infinite Banking policy needs a capitalization period of four to seven years after which the policy becomes more efficient every year, where efficiency is measured by the ability to generate cash values.

2021 November BankNotes

The central message of Nelson Nash in BYOB is that everybody needs to rely (at least implicitly) on financing for life’s major purchases. Even if you buy a car
with cash, you are forfeiting the opportunity of investing that cash and earning a return on it. So even people who always “pay cash” still experience the same implicit tradeoffs between spending now versus later. Therefore, Nash argues, the real question is whether you are going to obtain your financing from a bank controlled by outsiders, versus a bank that you control.

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

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