Infinite Banking, Fiction Or Fact?
This is a case study on someone who is practicing the Infinite Banking Concept revealed in the book Becoming Your Own Banker, by R. Nelson Nash.
This man was 45 years old.
An annual premium consisting of $30,000 being paid into a dividend paying whole life insurance policy with a face value consisting of $567,000
Two weeks later he borrowed $12,000, of the $22,000 of available cash value, from this policy
He took his loan of $12,000 and used it to pay his tax bill. Next he drew up a schedule for repaying his policy from which he had borrowed.
Paying $390 per month, for 36 months, he accumulated $14,040 plus the $10,000 of original cash value left over from the first policy loan.
Over a 36 month time frame he paid two additional annual premiums of $30,000.
After paying the second premium of $30,000 his cash values were increased by $24,000.
After paying his third premium of $30,000 the cash values increased by $34,500.
At this time there was $82,540 of cash values in his policy and his face value (death benefit) was up to $801,000. Remember he has only paid $90,000 in premiums so far, and thus his comparative outlay is only $208 a month or $7,460 total.
Compare this to a term policy with an $800,000 face value; his cost for this would have been $323 per month or $11,628 for an equal time period.
This continues to improve because remember the $10,000 of cash value that this man left inside his policy when he took out the $12,000 loan?
That $10,000 was used, with another $20,000 of cash on hand, to purchase an automobile. The monthly repayment schedule on that automobile was $667.33 per month. This means that after the same 36 month period of time mentioned above, this fellow who is now 48, has an additional $24,024 of cash values. $24,024 plus $82,540 comes to $106,564. This is $16,564 more than what has been paid in total premiums!
Summary:
This fellow now has $16,564 which he would not have had otherwise
Besides he has more than $801,000 of death benefit that has cost nothing!
Also, he took care of a $12,000 bill to the tax department and purchased a $30,000 automobile.
Just in two years, his accumulation will have swelled by an additional $16,016 as he continues to make the monthly payment on his car.
By practicing The Infinite Banking Concept his death benefit (face value) is now $812,424.
He did all this merely by putting the banking equation under his control. He recovered what the financial institutions and bankers would have made off of him. All this he now owns tax free.
After reviewing this case study, it is quite evident that “The return of your money is more important than the rate of return on your money.”
The Infinite Banking Concept is indeed fact and not fiction.
Dr. Tomas McFie of Life Benefits, Inc. Is a widley sought financial coach. He helps people and business owners recover 30-35% of the money they are currently spending through the practice of the Infinite Banking Concept as described in the book Becoming Your Own Banker
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