The Infinite Banking Concept (IBC) is a financial strategy that involves utilizing specially designed whole life insurance policies as a savings vehicle and a source of financing. Here’s how it works:
First, you purchase a whole life insurance policy from a reputable insurance company. The policy should have a cash value component that grows over time as you make premium payments. This cash value can be borrowed against as needed, much like a line of credit.
Next, instead of borrowing from a traditional bank or financial institution, you borrow against the cash value of your whole life insurance policy. This allows you to access funds without having to go through a credit check or meet other lending criteria.
The borrowed funds are then repaid over time, either through scheduled payments or by replenishing the cash value of the insurance policy. By repaying the loan, you are essentially paying yourself back with interest, rather than paying interest to a bank or other lender.
As the cash value of the insurance policy continues to grow, you have the option to borrow against it again in the future, creating a self-sustaining system that allows you to accumulate wealth and access funds without relying on traditional banks or financial institutions.
Overall, the Infinite Banking Concept can be a powerful tool for individuals and businesses looking to gain more control over their finances and potentially save on taxes. However, it requires careful planning and management to ensure that the policy remains financially viable over the long term.
The process of becoming your own banker can actually be quite enjoyable. When you are in control of your finances, it can be liberating and empowering. The first step to getting started is education. This can involve reading Nelson’s book, “Becoming Your Own Banker,” as well as attending one of our free boot camps or webinars with no pressure to commit.
After gaining an understanding of the Infinite Banking Concept, we want to know what your financial goals and aspirations are. Based on this information, we can design a personalized IBC Strategy that aligns with your specific needs and objectives. And the best part? This service comes at no charge. Imagine the possibilities and potential benefits at absolutely no cost.
The process of obtaining funding, also known as capitalization, can take many forms. However, regardless of the situation, there are often leaks in the cash flow system due to the lack of financial education. By learning to think like a banker, we can help you optimize your existing cash flow and increase efficiency.
Many people have activators or unused money that they can utilize, such as savings, bonuses, tax refunds, investments, windfalls, home equity, extra debt payments, and more. Some individuals even save cash for specific events like Christmas or back-to-school expenses. These funds are ideal for creating your system and using those dollars for their intended purpose. This allows you to maximize your dollars by using them more than once.
If you think this approach is impossible for your situation, you may be mistaken. We specialize in helping people shift their thinking and make more effective use of their money. By implementing the Infinite Banking Concept, we can help you create a system that allows your dollars to work harder and more efficiently. Imagine getting your dollars to do multiple jobs instead of just one. It is possible, and we can help you achieve it.
Utilizing the cash value of a dividend-paying whole life insurance policy in an IBC strategy does not count against the majority of colleges’ financial aid applications. On the other hand, investments must be reported and may reduce the amount of financial aid available.
With an IBC strategy, families can use the available cash (policy loan) to finance their child’s education or pay off their student loans quickly after graduation. The child, now educated and employed, can then repay the policy loan. Many families also explore additional options to supplement this approach. If you are interested in exploring the possibilities, we would be delighted to help you.
