I became involved in the financial services industry in the late 1980s while working full time in the public school system as a teacher. Although I knew that whole life insurance had a cash value and that the cash value could be borrowed against, it was not until 2006 that I saw the power and potential of whole life insurance. I was given the book Becoming Your Own Banker by R. Nelson Nash which describes the infinite banking concept or IBC. As I read this book my vision cleared and I finally understood the power in the IBC system.
Even though I was in my 50s we got started with our “for IBC” designed policy. (Oh how I wished I had known and acted 20 – 30 years sooner!!!)
What have we used our IBC system for? We replaced the small business loan on our jam and jelly business, Chads Raspberry Kitchen, from a commercial bank to our “Family Bank” using IBC. Now we pocket the interest paid by the company and are restocking the “Family Bank” with the principal. We have financed inventory for Chads Raspberry Kitchen again pocketeinh the interest as the company paid the loan. Of course Chads Kitchen makes us money from its sales just like any other business but we also make money in a tax advantaged way using IBC.
We have financed three automobiles and built our personal wealth by paying ourselves instead of the finance companies. We have financed a cruise. We even financed our son’s wedding.
Because of the policy design every dollar we pay in premium shows up, with growth, by contract guarantee, as cash value. Because of the IBC system we have accessible cash to replace capital needs and wants. We have accessible cash for opportunities that require investment. We have a source of emergency cash available with a simple phone call.
I recently retired from teaching in the public schools and do not have to work, but with 29 years of experience in the financial services business I choose to teach others how to implement IBC.