Here are the historical facts of a case study regarding a practitioner of the Infinite Banking Concept as outlined in the book, Becoming Your Own Banker, by R. Nelson Nash.
A male that is 45 years of age
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.
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.
His third paid premium increased his cash values by yet another $34,500
Now he has $82,540 in cash values besides the $801,000 of face value. At this time, he has only paid $90,000 of premiums, so really his cost has simply been $208 per month or $7,460 in all.
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.
But it gets even better because he place 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 place 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.
Plus over $801,000 of life insurance that has really cost him nothing.
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.
By practicing The Infinite Banking Concept his death benefit (face value) is now $812,424.
Simply by controlling the banking equation, all the profits, which the banks and financial institutions would have made off this fellow, have returned to him tax free.
This case study demonstrates firsthand that the “return of your money is always more vital than the rate of return on your money.”
The Infinite Banking Concept is indeed fact and not fiction.
Tom 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