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
Within two weeks he borrowed $12,000 from the available $22,000 cash values inside his 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.
After a 3 year period, he has paid two more premiums of $30,000.
The second paid premium increased his cash values another $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.
So let us compare this to a term policy with $800,000 of face value. For this kind of face value he would have paid $323 every month for a total of $11,628 over this period of time.
But it gets even better because he put the $10,000 of cash value left in the policy after the first policy loan to work also.
That $10,000 added to $20,000 which he had on hand, he used to purchase a car. The monthly amortization schedule, for the car, outlined payments of $667.33 per month for 36 months. Therefore after the 36 month period outlined above, this man at age 48, has the $82,540 plus an additional $24,042 in cash values, added together that makes $106,564 this registers as $16,564 more than he has expended in 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!
On top of all that he has paid off a $12,000 tax bill and owns 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.
This case study demonstrates firsthand that the “return of your money is always more important than the rate of return on your money.”
The Infinite Banking Concept is obviously a fact not fiction.
Tom McFie PhD. 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
categories: Money,Taxes,Autos,Finance,Insuranc,Payment schedules,Infinite Banking Concept,Becoming Your Own Banker,IBC
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