How Soon Can I Get an IBC Loan from Whole Life Built to be My Own Bank?
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- čas přidán 3. 01. 2016
- Wondering how soon before you can start taking infinite banking loans with a Whole Life policy. It obviously depends on the specific whole life insurance company, policy, and design, but it's probably sooner than you think.
The short answer is you can get an IBC-style policy loan in as little as 30-days from a Whole Life policy properly structured to act as your own bank, but this video goes over a specific example that shows how much equity can build up early to borrow against.
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Great illustration. Thank you!!!
Yes Cee Zee, by paying additional premium beyond the minimum premium necessary to carry the policy, you can substantially enhance early liquidity of cash value as well as growth. This is often called "over-funding", but most people who set up policies for this reason intend to over-fund on a regular basis or at least as often as they are able.
So I don't loose from overfunding
And if I purchase term insurance for aboot $8,000 a year and the rest put into mutual funds a the end of 7 years I would have over $400,000.oo and I can get it at any time and not have to pay an insurance company a fee to borrow my own money! And I would not have to pay it back ever !
So I’m thinking your insurance scam is for idiots
totally awesome Video .. very simple language ..
Thanks Bobby, that's how we roll.
What are the best companies for this type of policy???
How soon can I borrow if i may ask once i start the policy
Good video! Greetings. Can you expedite the Cash Value's liquidity by paying more than the Premiums?
The illustration says "Non-Guaranteed Values" (keyword: non-guaranteed). So I'm curious about the likelihood in which the illustrated actually materializes.
I would say about 100% of the time the Non-Guaranteed Values will not be true because it assumes a static dividend for 40+ years, and the dividend will fluctuate in many years. That said for the top mutual companies which have paid at least some sort of dividend every year, the Guaranteed Values will most likely be wrong 100% of the time as well.
But at any given point the family only gets one of two things either the cash value or the death benefit in a whole life policy index universal life allows your family to keep both
Actually, If you design an IUL to support any meaningful amount of death benefit during retirement, you will greatly compromise cash value performance. And actually the insurance company never sends 2 checks (1 for CV and 1 for DB). In any insurance product your cash value is essentially a deposit on your future death benefit. So although you can choose an Option 2 death benefit on IUL where the DB always increases by the amount of CV, maintaining this amount of DB will be very costly past retirement age and erode cash value.
@@BankingTruths you posted a long lie ! The correct answers is yes if you die your beneficiaries will only get the death benefit minus any loan you still owe them! So yes you lose all your money!
My way your family keeps your money
i'm new on the topic of IBC/WL...so maybe my questions will sound trivial: if the person from the example dies few days after starting with the WL policy - he would get $102K (right-most column), and if he dies after 15 yrs...he would get $198k. Is this correct? Why is this increase in death benefit? Is he paying $35k/yr base premium (to get WL) OR is $35k/yr premium + extra with the idea to use IBC?
The key to maximizing performance in whole life is the PUA rider. Learn how Paid-Up Additions increase both the Cash Value & Death Benefit at BankingTruths.com/PUA. Watch how all the riders interplay for policy optimization at BankingTruths.com/Riders.
Can't hear it very low volume.
We're sorry for the sound quality of our old legacy videos. Get to a place where you can crank it up. Based on others' feedback, it should be worthwhile.
What do you think about borrowing in year 1?
Juan, many carriers allows it. It obviously depends on all the facts and circumstances involved, but we're not necessarily opposed to it. It's something we help our clients think through how best to acquire the optimal policy size they want while maintaining sufficient early liquidity. Lots of ways to skin the cat.
Good explanation
Thanks. We strive to make the complex simple for folks
Did I see correctly that in order to pay the premium it would cost $35,000? Are all infinite banking types this expensive?
No on a couple levels actually. You can choose your own level of funding and we shrink wrap the minimum amount of death benefit around it. There are slight economies of scale to going larger, but not significant. Also, when funding life insurance in this maximum efficient manner you should not consider it expensive. You pay more premium, you get more CV and growth. You pay less you get less. When you max fund vs min fund your 401k you probably don't say it's expensive because you're building an asset. Same concept, get it?
at the beginnig of the video he mentioned not to focus on the numbers so much. it all depends on the persons situation. you should check out his video on company and agent recommendations and contact them to see what would be best for you
@@BankingTruths But I do understand that if the annual amount put in is not adequately generous,, your cash value for the first ten years would be near $0
@@JAJA0913 that would never be true the way we design policies with a certain combination of riders. I would watch the video at BankingTruths.com/Riders to see what I'm talking about.
I’ve only had my policy long enough to have a $566.00 net surrender value and my policy is only for $10.000 so can I borrow $500.00 from it?
I can't say anything definitively without knowing the actual contract details, but theoretically yes you should be able to borrow about that much. Often it's around 90% of the total cash value, but will vary some. Contact your agent or the company for specific parameters of their policy loans.
You were taken advantage of .. im so Sorry.
I'd rather see an illustration more affordable to general folks, such as $5000 a year. Wondering whether the resulting cash value would be significantly different.
Everything is exactly proportionate except for certain fixed cost within the policy such as a policy fee (often less than $100/year). So all you can simply divide cash value and death benefit by 2 to imagine your policy.
Most people who love mutual funds don't put every penny in mutual funds. It's quite common to find affluent families with 100k or more in cash. This is about those dollars, not those allocated to mutual funds
@@BankingTruths you would be really stupid to think putting money in an over funded insurance policy is equal to or same as keeping $100,000 on hand on cash !
See I can get my money from mutual funds faster than you can get it from this terrible scam
The premium was $14,445 so if you divide by 3 that would be the results for a policy with a $4,815 premium. It's all proportionate
@@BankingTruths again you make no sense at all !
I don’t need your trash policy !
See it’s a scam ‘. I buy term life for age 45 a $1,500,000 policy would only be aboot $8,000 per year! Some states maybe a little more !
Bit let’s say it was $14,000
You are paying $36,000 per year , so $35,000 minus the $14,000 that mean I can invest $21,000 a year and still have more insurance than with your plan !
And In 7 years I would have I would have $235,000 and it’s all mine ! I can take it out at any time ! I can use all I want and not pay a fee to an insurance company and if I die my family gets the million five and they also get the $235,000 !
So yes insurance is not a good investment!
I’m at the point now that I do not need life insurance !
I have no debt , everything I own is in my will to be given to my family! My funeral is all paid for including the casket plot and everything except what I’m to wear and what flowers !
But it’s because I can do math ! Math shows that your way is stupid !
That’s why you will never find anyone who is a millionaire that says they used this to get rich except the people selling it !
Like I said do the math and your way loses
But what are the monthly payments?
You choose your monthly payment when we design the plan
I see what you mean about tax free growth, but like there is compounding interest growth won't there be compounding fees along with it?
czcams.com/video/HlJBJ_Bi_Jk/video.html. Yes, and I recently made an entire video about just that.
Could I borrow more from my death benefit than I would have in my cash account?
IE If I were to pay $40k into my cash account which awarded me say a $400k death benefit, can I then borrow say $200k from my death benefit?
My hope is that the answer is yes because if not then this doesn't really provide the same function that a bank loan does. I mean nearly the entire reason people get a loan is so they can have access to more money than they currently have in cash. If we have to have the entire amount available in our cash account as collateral then despite the compounding benefits awarded by such a policy we wouldn't be getting the same level of access and therefore we wouldn't be getting the same level of functionality.
You can only borrow against the cash value. Even if you use a traditional loan for RE or autos, you still often need a cash down payment. This is where a policy loan replacing non-performing cash can benefit you. Also, most of my clients who still use traditional leverage, like knowing they always have substantial cushion on deck in their high-performing policy wearing multiple hats. It works well for those who are financially disciplined, but some people are looking for a magic bullet to compensate for poor financial habits. Some people get it, some don't. Either way, go fourth and prosper!
@@BankingTruths Ok thank you for clarifying that. If one were to borrow against their cash value and not pay it back directly, could the difference be made up by buying a rider that increases their death benefit? Or would not paying it back directly result in the money being pulled from the cash value account and therefore destroying the compounding benefits?
Please don't put ANY MONEY into a Life insurance policy. These guys are scam artists. All you need to do is get your hands on a whole life policy or IUL policy. All the fees are straight ROBBERY!! and it's legal.. I advise against it. Any book on the library regarding personal finance will tell you never buy these types of policies. Buy a level term for 20 -35 years or for as long as you have outstanding liabilities, home , debt, etc... And for savings, place your money on a ROTH IRA with a mutual fund earning at least 12% a year. .. plus when you draw from this account you pay no taxes... These guys have no Licenses in investments and should not be talking about it. .. straight ROBBERY!!. I hope you don't have one of these
@@leosuarezjr8479 You are obviously...an idiot. You must be a Primerica TERMITE. Go troll elsewhere, and take your limited knowledge with you.
If insurance is over funded and if deceased will tue beneficiaries get the cash value as well?
I get asked this question often so I made a video about it since the answer is "it depends". czcams.com/video/9C7b95XI5Og/video.html