Bank On Yourself
If you’ve done a little research online, you may have run across any of the these terms: The Infinite Banking Concept, Bank On Yourself, The Presidents Plan, 770 Plan, 7702 Plan, Cash flow Banking, etc. etc. They are all terms different organizations have come up with in an effort to describe and market the same unique financial strategy to the public. The strategy has been quietly used by savvy families for nearly two centuries and involves using specially structured whole life insurance contracts as a financial foundation, saving and wealth building storehouse, self-financing platform and multi-generational wealth planning tool.
The whole life insurance contracts used for the Bank On Yourself concept are basic whole life insurance policies optimized for maximum cash accumulation by being structured with specific riders, funded in specific ratios and issued by specific types of insurance companies that offer some specific features.
Whole life insurance is a private contract between an insurance company and a policy owner, insuring the life of an insured person (usually the policy owner) for their entire lifetime or very old age (usually 121 years old). As the policy owner pays periodic premiums, the whole life insurance contract accumulates cash values. In 1950 fully 1/3 of American families owned whole life insurance. “Insurance is the most formidable mechanism we have to save as a society and the economics of insurance has not been given proper weight by economists in how they look at the world.” – Former FED Chairman, Alan Greenspan
Maybe, but not likely. The Whole Life Insurance contracts we work with must be structured correctly, funded correctly and issued by companies that offer the right features. Unless your agent or planner has had the specific training required, it is likely you would end up with an incorrectly structured policy that will not deliver the results you expect and leave you disappointed – or angry.
Paid Up Additions Riders are one of the special riders a Whole Life policy must be structured with to function properly. These riders “turbo charge” the cash accumulation in the policy so that they accumulate cash value up to 40X faster than a whole life policy without it.
The way we structure the life insurance policies used for Bank On Yourself, commissions are 60% – 70% less than what a typical insurance agent makes on a typical Whole Life Insurance policy. Even what a typical agent makes is crumbs compared what a financial planner will reap “managing” your money for decades. Agent commissions are factored into the cost of a policy on day one. You know exactly what your total costs are in black and white before you ever commit to anything. Ask your financial planner to give you guarantees on anything and see how they respond…
I wholeheartedly recommend healthy skepticism, caution and prudent due diligence, but I have never really understood what this statement means. At one time almost every thing in our world would have been considered too good to be true. Automobiles, aircraft, phones, TV’s, etc. etc. Something I always remind my clients about: It’s not magic, it’s just math…