Here are the historical facts of a case study regarding a practitioner of the Infinite Banking Concept as outlined in the book, Becoming Your Own Banker, by R. Nelson Nash.
This man was 45 years old.
He put $30,000 in the form of an annual premium into a mutual participating whole life insurance policy promising $567,000 to his family in the event of his death.
Within two weeks he borrowed $12,000 from the available $22,000 cash values inside his policy.
He used this $12,000 to take care of a bill to the tax department. The man repaid this loan on a repayment schedule.
After 36 monthly payments of $390 per month the total accumulation of his payments amount to $14,040 besides this, he still has the $10,000 left over after the first policy loan was taken.
After a 3 year period, he has paid two more premiums of $30,000.
After he paid the second premium, $24,000 was added to his cash values.
His third paid premium increased his cash values by yet another $34,500
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.
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.
Things are even better than they appear in this case, for he withdrew the cash values of $10,000 which was left over after the first policy loan and put it to work too.
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 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!
Now he has paid his tax bill of $12,000, plus he has a $30,000 car!
In two more years, he will have an additional $16,016 by maintaining the loan repayment schedule established on the automobile.
By practicing The Infinite Banking Concept his death benefit (face value) is now $812,424.
Simply by controlling the banking equation, all the profits, which the banks and financial institutions would have made off this fellow, have returned to him tax free.
What this case study proves is that the "return of your money is always more important than the rate of return on your money."
The Infinite Banking Concept is indeed fact and not fiction. - 31821
This man was 45 years old.
He put $30,000 in the form of an annual premium into a mutual participating whole life insurance policy promising $567,000 to his family in the event of his death.
Within two weeks he borrowed $12,000 from the available $22,000 cash values inside his policy.
He used this $12,000 to take care of a bill to the tax department. The man repaid this loan on a repayment schedule.
After 36 monthly payments of $390 per month the total accumulation of his payments amount to $14,040 besides this, he still has the $10,000 left over after the first policy loan was taken.
After a 3 year period, he has paid two more premiums of $30,000.
After he paid the second premium, $24,000 was added to his cash values.
His third paid premium increased his cash values by yet another $34,500
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.
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.
Things are even better than they appear in this case, for he withdrew the cash values of $10,000 which was left over after the first policy loan and put it to work too.
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 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!
Now he has paid his tax bill of $12,000, plus he has a $30,000 car!
In two more years, he will have an additional $16,016 by maintaining the loan repayment schedule established on the automobile.
By practicing The Infinite Banking Concept his death benefit (face value) is now $812,424.
Simply by controlling the banking equation, all the profits, which the banks and financial institutions would have made off this fellow, have returned to him tax free.
What this case study proves is that the "return of your money is always more important than the rate of return on your money."
The Infinite Banking Concept is indeed fact and not fiction. - 31821
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
