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
In two weeks he took a $12,000 loan from his policy out of the $22,000 of available cash values.
He used this $12,000 to take care of a bill to the tax department. The man repaid this loan on a repayment schedule.
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
After paying his third premium of $30,000 the cash values increased by $34,500.
At this point, he had $82,540 of cash value and over $801,000 of face value. Because he had only paid $90,000 in premiums up to this point, his comparative cost has only been $208 per month or a total of $7,460.
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.
Things are even better than they appear in this case, for he withdrew the cash values of $10,000 which was left over after the first policy loan and put it to work too.
That $10,000 added to $20,000 which he had on hand, he used to purchase a car. The monthly amortization schedule, for the car, outlined payments of $667.33 per month for 36 months. Therefore after the 36 month period outlined above, this man at age 48, has the $82,540 plus an additional $24,042 in cash values, added together that makes $106,564 this registers as $16,564 more than he has expended in premiums!
Conclusion:
This fellow now has $16,564 which he would not have had otherwise
Plus over $801,000 of life insurance that has really cost him nothing.
On top of all that he has paid off a $12,000 tax bill and owns 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.
He did all this merely by putting the banking equation under his control. He recovered what the financial institutions and bankers would have made off of him. All this he now owns tax free.
What this case study proves is that the "return of your money is always more important than the rate of return on your money."
So The Infinite Banking Concept is truly fact not fiction.
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
In two weeks he took a $12,000 loan from his policy out of the $22,000 of available cash values.
He used this $12,000 to take care of a bill to the tax department. The man repaid this loan on a repayment schedule.
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
After paying his third premium of $30,000 the cash values increased by $34,500.
At this point, he had $82,540 of cash value and over $801,000 of face value. Because he had only paid $90,000 in premiums up to this point, his comparative cost has only been $208 per month or a total of $7,460.
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.
Things are even better than they appear in this case, for he withdrew the cash values of $10,000 which was left over after the first policy loan and put it to work too.
That $10,000 added to $20,000 which he had on hand, he used to purchase a car. The monthly amortization schedule, for the car, outlined payments of $667.33 per month for 36 months. Therefore after the 36 month period outlined above, this man at age 48, has the $82,540 plus an additional $24,042 in cash values, added together that makes $106,564 this registers as $16,564 more than he has expended in premiums!
Conclusion:
This fellow now has $16,564 which he would not have had otherwise
Plus over $801,000 of life insurance that has really cost him nothing.
On top of all that he has paid off a $12,000 tax bill and owns 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.
He did all this merely by putting the banking equation under his control. He recovered what the financial institutions and bankers would have made off of him. All this he now owns tax free.
What this case study proves is that the "return of your money is always more important than the rate of return on your money."
So The Infinite Banking Concept is truly fact not fiction.
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