This is an actual case study of someone who put the Infinite Banking Concept into practice as described by R. Nelson Nash in his book Becoming Your Own Banker.
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.
He took his loan of $12,000 and used it to pay his tax bill. Next he drew up a schedule for repaying his policy from which he had borrowed.
After 36 monthly payments of $390 per month the total accumulation of his payments amount to $14,040 besides this, he still has the $10,000 left over after the first policy loan was taken.
Over a 36 month time frame he paid two additional annual premiums of $30,000.
After he paid the second premium, $24,000 was added to his cash values.
After he paid the third premium, another $34,500 was added to his cash values.
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 put 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 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.
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.
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 important than the rate of return on your money.”
The Infinite Banking Concept is indeed fact and 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
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