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.
A male that is 45 years of age
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 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.
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.
While he was paying back this loan he had also paid two more annual premiums of $30,000 each.
After he paid the second premium, $24,000 was added to his cash values.
After he paid the third premium, another $34,500 was added to his cash values.
At this point, he had $82,540 of cash value and over $801,000 of face value. Because he had only paid $90,000 in premiums up to this point, his comparative cost has only been $208 per month or a total of $7,460.
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 was used, with another $20,000 of cash on hand, to purchase an automobile. The monthly repayment schedule on that automobile was $667.33 per month. This means that after the same 36 month period of time mentioned above, this fellow who is now 48, has an additional $24,024 of cash values. $24,024 plus $82,540 comes to $106,564. This is $16,564 more than what has been paid in total 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!
Now he has paid his tax bill of $12,000, plus he has a $30,000 car!
And, in just two more years, he will have accumulated another $16,016 simply by maintaining the repayment schedule he has already set up on the automobile.
Because he has practiced Becoming Your Own Banker through the use of the Infinite Banking Concept, his death benefit has climbed from $801,000 to $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 obviously a fact not fiction.
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
Tags: auto insurance, autos, Becoming Your Own Banker, finance, IBC, Infinite Banking Concept, Insuranc, money, Payment schedules, Taxes