The Infinite Banking Concept Fact Or Fiction?
This is an actual case study of someone who put the Infinite Banking Concept into practice as described by R. Nelson Nash in his book Becoming Your Own Banker.
A 45 year old male
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
In two weeks he took a $12,000 loan from his policy out of the $22,000 of available cash values.
He used this $12,000 to take care of a bill to the tax department. The man repaid this loan on a repayment schedule.
His repayment schedule specified that he would pay back this loan over a course of 36 months with a monthly payment of $390. At the end of this time he had paid back $14,040 and now had this money available in addition to the $10,000 of cash value that did not loan from his cash values originally.
Over a 36 month time frame he paid two additional annual premiums of $30,000.
The second paid premium increased his cash values another $24,000
After he paid the third premium, another $34,500 was added to his cash values.
Now he has $82,540 in cash values besides the $801,000 of face value. At this time, he has only paid $90,000 of premiums, so really his cost has simply been $208 per month or $7,460 in all.
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!
Conclusion:
This man has $16,564 more than he paid in premiums. This is money he would not have had if he had not followed The Infinite Banking Concept.
He also has $801,000 of death benefit through his life insurance policy with technically no expense.
Also, he took care of a $12,000 bill to the tax department and purchased a $30,000 automobile.
In two more years, he will have an additional $16,016 by maintaining the loan repayment schedule established on the automobile.
Finally, because he has been utilizing the Infinite Banking Concept and practiced Becoming Your Own Banker, his face value has gone up from $801,000 to $812,424.
Because he learned to control the banking equation, he has received, tax free, all the profits which would have gone to the banking and financial institutions.
What this case study proves is that the "return of your money is always more important than the rate of return on your money."
So The Infinite Banking Concept is truly fact not fiction - 21396
A 45 year old male
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
In two weeks he took a $12,000 loan from his policy out of the $22,000 of available cash values.
He used this $12,000 to take care of a bill to the tax department. The man repaid this loan on a repayment schedule.
His repayment schedule specified that he would pay back this loan over a course of 36 months with a monthly payment of $390. At the end of this time he had paid back $14,040 and now had this money available in addition to the $10,000 of cash value that did not loan from his cash values originally.
Over a 36 month time frame he paid two additional annual premiums of $30,000.
The second paid premium increased his cash values another $24,000
After he paid the third premium, another $34,500 was added to his cash values.
Now he has $82,540 in cash values besides the $801,000 of face value. At this time, he has only paid $90,000 of premiums, so really his cost has simply been $208 per month or $7,460 in all.
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!
Conclusion:
This man has $16,564 more than he paid in premiums. This is money he would not have had if he had not followed The Infinite Banking Concept.
He also has $801,000 of death benefit through his life insurance policy with technically no expense.
Also, he took care of a $12,000 bill to the tax department and purchased a $30,000 automobile.
In two more years, he will have an additional $16,016 by maintaining the loan repayment schedule established on the automobile.
Finally, because he has been utilizing the Infinite Banking Concept and practiced Becoming Your Own Banker, his face value has gone up from $801,000 to $812,424.
Because he learned to control the banking equation, he has received, tax free, all the profits which would have gone to the banking and financial institutions.
What this case study proves is that the "return of your money is always more important than the rate of return on your money."
So The Infinite Banking Concept is truly fact not fiction - 21396
About the Author:
Dr. Tom 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
posted by X - Men @ 5:42 AM
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