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.

This man was 45 years old.

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.

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

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.

After a 3 year period, he has paid two more premiums of $30,000.

The second paid premium increased his cash values another $24,000

His third paid premium increased his cash values by yet another $34,500

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.

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.

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?

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!

Conclusion:

This fellow now has $16,564 which he would not have had otherwise

Besides he has more than $801,000 of death benefit that has cost nothing!

Also, he took care of a $12,000 bill to the tax department and purchased 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.

Finally, because he has been utilizing the Infinite Banking Concept and practiced Becoming Your Own Banker, his face value has gone up from $801,000 to $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.

What this case study proves is that the "return of your money is always more important than the rate of return on your money."

The Infinite Banking Concept is obviously a fact not fiction.

Dr. Tomas 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