Infinite Banking, Fiction Or Fact?
This is a case study on someone who is practicing the Infinite Banking Concept revealed in the book Becoming Your Own Banker, by R. Nelson Nash.
A 45 year old male
An annual premium consisting of $30,000 being paid into a dividend paying whole life insurance policy with a face value consisting of $567,000
Within two weeks he borrowed $12,000 from the available $22,000 cash values inside his 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.
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 paying the second premium of $30,000 his cash values were increased by $24,000.
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.
A term policy for $800,000 of face value, on the other hand, would have cost him $323 per month, or $11,628 during this same time frame.
This continues to improve because remember the $10,000 of cash value that this man left inside his policy when he took out the $12,000 loan?
That $10,000 added to $20,000 which he had on hand, he used to purchase a car. The monthly amortization schedule, for the car, outlined payments of $667.33 per month for 36 months. Therefore after the 36 month period outlined above, this man at age 48, has the $82,540 plus an additional $24,042 in cash values, added together that makes $106,564 this registers as $16,564 more than he has expended in premiums!
Summary:
This fellow now has $16,564 which he would not have had otherwise
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.
This case study demonstrates firsthand that the “return of your money is always more important than the rate of return on your money.”
So The Infinite Banking Concept is truly fact not fiction
