Infinite Banking, Fiction Or Fact?
This is an actual case study of someone who put the Infinite Banking Concept into practice as described by R. Nelson Nash in his book Becoming Your Own Banker.
This is an actual case study of someone who put the Infinite Banking Concept into practice as described by R. Nelson Nash in his book Becoming Your Own Banker.
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.
Two weeks later he borrowed $12,000, of the $22,000 of available cash value, from this 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.
Paying $390 per month, for 36 months, he accumulated $14,040 plus the $10,000 of original cash value left over from the first policy loan.
Over a 36 month time frame he paid two additional annual premiums of $30,000.
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 time there was $82,540 of cash values in his policy and his face value (death benefit) was up to $801,000. Remember he has only paid $90,000 in premiums so far, and thus his comparative outlay is only $208 a month or $7,460 total.
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.
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.
He took this $10,000 and utilized it along with an extra $20,000 that he had in cash to buy a new automobile. The repayment schedule on this loan amounted to monthly payment of $667.33. So after this 36 month time frame when the guy is now 48 he owns an additional $24,024 along with the $82,540 which totals to $106,564. This means he has $16,564 more than in what he put into this process in 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.
Besides he has more than $801,000 of death benefit that has cost nothing!
On top of all that he has paid off a $12,000 tax bill and owns a $30,000 automobile.
Just in two years, his accumulation will have swelled by an additional $16,016 as he continues to make the monthly payment on his car.
By practicing The Infinite Banking Concept his death benefit (face value) is now $812,424.
Because he learned to control the banking equation, he has received, tax free, all the profits which would have gone to the banking and financial institutions.
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.
This is an actual case study of someone who put the Infinite Banking Concept into practice as described by R. Nelson Nash in his book Becoming Your Own Banker.
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.
Two weeks later he borrowed $12,000, of the $22,000 of available cash value, from this 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.
Paying $390 per month, for 36 months, he accumulated $14,040 plus the $10,000 of original cash value left over from the first policy loan.
Over a 36 month time frame he paid two additional annual premiums of $30,000.
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 time there was $82,540 of cash values in his policy and his face value (death benefit) was up to $801,000. Remember he has only paid $90,000 in premiums so far, and thus his comparative outlay is only $208 a month or $7,460 total.
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.
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.
He took this $10,000 and utilized it along with an extra $20,000 that he had in cash to buy a new automobile. The repayment schedule on this loan amounted to monthly payment of $667.33. So after this 36 month time frame when the guy is now 48 he owns an additional $24,024 along with the $82,540 which totals to $106,564. This means he has $16,564 more than in what he put into this process in 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.
Besides he has more than $801,000 of death benefit that has cost nothing!
On top of all that he has paid off a $12,000 tax bill and owns a $30,000 automobile.
Just in two years, his accumulation will have swelled by an additional $16,016 as he continues to make the monthly payment on his car.
By practicing The Infinite Banking Concept his death benefit (face value) is now $812,424.
Because he learned to control the banking equation, he has received, tax free, all the profits which would have gone to the banking and financial institutions.
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.
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