Questions & Answers: 

What is Infinite Banking?

It is a process that combines sound economic principles with permanent life insurance contractual guarantees and IRS rules and:

• provides you with ready available cash for emergencies and opportunities 
• allows you to recapture the total purchase price of big ticket items like cars, vacations, school tuition, equipment, etc. 
• it turns into a supplemental tax free income stream that you can never outlive... there are many more additional benefits.

Some of the sound economic principles we refer to are: increased savings, recapture of lost opportunity cost, benefit from velocity of money and volume of interest to keep up with inflation and other overhead costs affecting the time value of money.
Banking for your own benefit is the only process that allows you to do that.

So… is this Life Insurance? (This is a difficult question. It requires an open mind!)

 Yes… and that is why it is so beautiful!! But stop right here; WE ARE TALKING ABOUT BANKING FIRST. Learning to do banking for your own benefit is what will totally change the environment in which you use your money. You can do banking using many tools but we are recommending the best tool of all.

There are reasons for it and you will learn them reading on, but do not get caught in the "Oh, now I know this is just another clever way to sell life insurance."
You need to make an effort to look beyond that and see the big picture: THERE IS A PROBLEM IN THE WAY WE HAVE BEEN TAUGHT TO MANAGE OUR MONEY, HOW WE SAVE (if we save any) AND HOW WE BUY OUR THINGS. 

We need to fix that to get out of financial prison; so what we are talking about here is "A PROCESS," where we need to  start saving and buying our things in a way that our choices and actions benefit us and not the banks, financial institutions and the government.

The fact is, when we believers and followers of the IBC chose a permanent life insurance dividend paying mutual company structure to host our banks; we were looking for the benefits offered by a combination of tax laws and regulations, contractual insurance laws and guarantees, and proven sound economic principles.
The insurance death benefit part is very important although it is not our main focus.

The Insurance factor in considering this structure to bank on yourself is actually minimal.

 

I heard that this is a scam or in the best case, it is a very smart way to sell expensive Life Insurance, that it never works and that there are much better ways to grow my money…Any comments?

 

Well, there are different points to consider here:

1^st. Those advisers do not know anything about the Infinite Banking Concept, and  they just want to make more money by selling you term life, and investing the rest of your money on several commission able products.

They do not know that in becoming your own banker you can benefit from the same strategies banks use. They do not know you can benefit from the Velocity of Money when you bank on yourself.

They do not know that you can pay yourself with Volume of interest instead of nominal interest.

They do not know that you can profit from Arbitrage; and they do not know that you can minimize your Lost Opportunity Cost, by obtaining several rates of return from the same block of money when you bank on yourself.

2^nd. Those promoters of "buy term and invest the rest" do not show their clients the reality of the very high cost of renewing insurance in your older years when you need it most, (You do not have to renew with whole life). They do not factor the Lost Opportunity Cost when affirming that Term is way cheaper than Whole Life.

3^rd. Life Insurance has been marketed (sold) wrong from the beginning.
Analyze this:

Needs: If you have to have something that you do not want! How much do you want to spend to get it?...Yeah, I know: nothing, or the least amount of money possible.

  

Wants: If you want to have something, how much are you willing to pay for it? I know that one too…Whatever it is.

 

Economic Structures; Lets create a model…

 

1st-) Minimum capitalization, (very little money) carrying a humongous expense (Highest Life Coverage). This structure at the slightest problem can break apart. This is how regular Life Insurance has been and it is always sold.

 

2nd-) Maximum capitalization, (Lots of money) carrying a tiny expense(Little Life Coverage). This structure practically runs by itself and has the ability to sort many problems. This is how the Infinite Banking Concept™ is offered.

 The fact is that even though the Insurance is little at the beginning by design, it becomes huge as time goes by. 
When it is time for you to pick up the fruits of your seeds, you will be happy that you implemented this process (Infinite Banking Concept) in your economy and life.

The bottom line is, if you have or  you find a vehicle to handle your money, better than this one, knock yourself out! 
Only the IBC is where:
* You have access to your money anytime without penalties or restrictions. 
* Your money is safe and protected from creditors and law suits.  
* It grows with maximum efficiency(Velocity of Money, Volume of Interest, Compounded Interest, Arbitrage and minimizing Lost Opportunity Cost).
* It grows on a tax deferred/free environment and on top of that, It comes with Life Insurance Protection (just in case).

Look at all the benefits and advantages presented to you by a Whole Life Insurance Policy engineered to perform according to the Infinite Banking Concept: