#INFINITE BANKING POLICIES FREE#

Whole life insurance policies structured in this way is likely why many ‘gurus’ in the financial advisory community such as Dave Ramsey and Suze Orman are often cited as “hating” whole life insurance. Unfortunately, structuring a whole life insurance policy to solve this particular problem makes premiums very high and cash value very low – especially in the early goings.

The fact is: most whole life insurance policies issued today are structured to solve the same problem they were originally designed to solve back in 1847 here in Canada (but likely earlier in other countries): to provide a guaranteed death benefit to the beneficiary named in a whole life policy. Just think: a typical lender will only fund a mortgage up to 80% of the value of a home after a pretty thorough credit check and approval process, while a life insurance company will allow a loan up up to 90% of the cash value of a policy without the need of an application process, credit check or otherwise.Ī bonus to the typical structure of a participating whole life insurance policy is an annual dividend payment that every policy owner receives to boost the cash value of their policy generated from the profits the insurance company generated over the last year with the premiums from their policy owners.

Of course, there is an interest rate charged to the policy owner, however there are no terms for repayment as the life insurance company knows that the whole life insurance policy is as solid of an asset as any out there. This means that the owner of a whole life insurance policy can request up to 90% of the cash value of their whole life insurance policy via a policy loan without any sort of financial qualification, application or credit check. While most understand that the cash value of a whole life insurance policy is the amount that they would receive if they were to cancel their whole life insurance policy and move on, what few recognize is that a policy owner has the ability to borrow against the cash value of their whole life insurance policy through policy loans. Since participating whole life insurance policies are structured mathematically using actuarial probability, the insurance company is able to share the present value or “cash value” of that future death benefit now based on the age, health details and other factors that an applicant shares with the insurance company when applying for whole life insurance. The goal is to create a self-contained system that provides individuals with control over their money and the ability to leverage it for their financial needs while still earning interest on the policy’s cash value.Ī typical participating whole life insurance policy is structured where the policy owner pays regular premiums into the policy, which typically remain level throughout the life of the policy in order to provide a death benefit that is paid out to the beneficiaries named on the policy upon the death of the insured.

#INFINITE BANKING POLICIES FREE#

The Infinite Banking Concept is a financial strategy that can only be implemented effectively through the use of a specially designed whole life insurance policy and when executed properly, can allow the policy owner to set up their own personal banking system.Īfter spending decades advocating liberty, free markets, sound money, and the Austrian school of economics, Nelson Nash discovered and developed IBC as a means to get as close to those ideals as possible and squeezing out the middle man (the banker) at the same time. The Infinite Banking Concept (IBC) created by R Nelson Nash is a strategy that involves the intentional growth of the available liquid cash value inside a properly-designed participating whole life insurance policy and borrowing against it to fund major expenditures, emergencies, and outside investment opportunities.

Infinite banking policies