InfiniteBanking.org is a website run by Nelson Nash, who wants to educate you on “becoming your own banker” by using whole life insurance policies to finance your major purchases (house, car, etc.), rather than the traditional method of borrowing money from a bank which you then have to pay back with interest.
Whole life insurance policies are a combination of life insurance and forced savings policies – the “forced savings” part meaning that part of your premiums are invested and bring you a small return. The specific attribute of whole life insurance policies that the Infinite Banking system is focusing on, however, is the fact that you can borrow money from this policy.
Infinite Banking claims that investing in a whole life insurance policy and then using it as a source to borrow money from rather than borrowing from a traditional bank will save you the money you pay in interest over the course of your life, which could obviously add up.
To be clear, Infinite Banking is not a system that claims to make you money, rather they say that their system will save you money. Also, they are not advocating that whole life insurance is a superior policy to term life insurance in the terms of payouts after you pass – their theory is that it is more important to have access to the money you pay into life insurance while you’re alive, rather than to have a large sum paid out after you die.
Understanding the workings of a whole life insurance policy is difficult, and Infinite Banking and Nelson Nash credit this by saying you may have to read through their text Becoming Your Own Banker multiple times before you truly understand how to utilize their system. This seems fair, as a quick skim of financial articles discussing term life insurance policies versus whole life insurance policies has enough numbers, percentages, and sample scenarios to make your head spin.
While the Infinite Banking system doesn’t seem to be for the faint of heart, there are advocates out there who say people without a lot of credit card debt and who have 5-7 years to invest in their policy before borrowing money from it might be able to benefit from this program.
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They didn't teach you how to spell "stimulus?" Get your money back from the damned college...you are wasting your time and money!!!
Insurance policies were always long and complicated and difficult to understand until the term life insurance companies came along and stole the market away from the whole life companies because Term Life is (or should be) plain, understandable and straightforward.
Whole life salesmen have always gotten their sales by promising big, big things from the "little bit" that the customer is paying for his insurance. But the reality is that whole life policies are still written in a way that ensures the company will make a profit. That's the only thing that's important to the company- pay the employees and make a profit.
You can promise all day long to give the customer 5% interest on "their" money, plus give them $125k or $220k or $400k of insurance, but the insurance company will always write in a clause so that if something goes wrong, they will make their money (even though the customer gets the shaft).
Here's an idea- save $20,000 per year in your own conservative investment account (instead of paying a whole life insurance company) and in 5 years or 10 years you will have that plus whatever interest you've made and if you want to take a loan from yourself to buy a car or a house you can. And when you pay it back you can add in the interest you woould have made. And you will know that no one is taking money out of your account to pay the army of clerks, accountants and salesmen and profits and overhead that is required when you are running an insurance company. then take a little of your money and buy as much term insurance as you think you need.
Don't let the wording in a whole life insurance policy trick you into thinking you're getting somehting for nothing because you're not. And don't let the anger of the salesmen who posted previously intimidate you into believing they know something you don't. they get angry when someone criticizes their program because their salary and lifestyle depend on it.
Also it is a 7 year test. So you could potentially over fund in the early years and reduce towards the end of the sliding period. It is also my understanding that the PAD rider as it increases the insurance level also increases the MEC threshold. I am not certain of this... I hope to find out this weekend.
I know there is a local agent that consults and sells these policies for infinite banking, but how can you choose an honest one?
Thanks for any advice!
I can truly appreciate your concerns. And unfortunately in this day and age, they are certainly justified. But I would more than welcome the opportunity to try and address any of your questions and/or concerns.
I've been in the Financial Services Industry for nearly 25yrs and have worked extensively in the Life Insurance Arena as well as IBC. I can confidently say that of structured properly, it is clearly one of the most unique and powerful resources available to help maximize the use of your money, protect against the volatility and the uncertainty in the market and provide a long-term financing tool.
Please feel free to contact me at your convenience...
Respectfully,
Richard Schaffer
President/CEO
Prestige Equity Group
561.350.7557 - Direct
when banks have liquidity issues,it has been proven that they refuse to lend out these CSV loans...........the money then gets stuck inside a life policy !!