Infinite Banking, Fiction Or Fact?

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 45 year old male

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.

With this $12,000 he paid a tax bill he owed. Then he set up a repayment schedule to repay his policy loan.

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.

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.

After paying his third premium of $30,000 the cash values increased by $34,500.

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.

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 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 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.

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.

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.

He did all this merely by putting the banking equation under his control. He recovered what the financial institutions and bankers would have made off of him. All this he now owns tax free.

After reviewing this case study, it is quite evident that “The return of your money is 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