Jakem723, sometimes but most insurance carriers can use technology to access your medical history through the Medical Information Bureau to verify everything checks out. If there is a red flag found there then they may request a physical. In other words it does depend on each individual applying. A good amount to start with will depend on your finanical goals and recommend chatting with a licensed professional such as our Cash Flow Ninja, MC. If interested, please send email to: ninja@vipfinancialeducation.com. Thanks for watching!
I've heard that even though you yourself can't qualify, a policy can be taken out for a family who is a lot healthier with you as the policy owner. How does that work?
Far and away the BEST video I've seen on the infinite banking concept. From the explanation of what it is, what is best used for, and especially at what point of your financial journey you are on as to whether or not it's a good fit. Seems like many other channels seem to skirt around specific dollar amounts where this concept could work for you, when it should be the number 1 consideration, instead of overextending yourself monetarily for something that isn't even truly needed at a certain time. Like you said, sometimes it is nice to be ruled out.
Jesse Mercer, very glad you enjoyed the video and content as it saves so much time to know this type of concept isn't for everyone. Thanks for watching!
Matt, you guess today was a breath of fresh air. I have been studying the IBC concept for a few weeks and many videos. Most move over key points and today I was just perfect. I appreciate this so much. Keep up the great work and keeping everyday people informed.
Matt, good to see you bring up IBC again. A couple of comments. MC didn't cover this when you were questioning the death benefit. The death benefit always has to be higher than the cash amount by a certain amount (MEC limit) to keep the policy from becoming a MEC (modified endowment contract), or simply stated....TAXED. As long as the policy is structured properly the policy is always tax free, even upon distributions at retirement. The death benefit increases as the cash grows to ensure the MEC is never breached. This is done by a specialized rider. For your viewers, this is not a typical whole life policy that you can go down to your insurance agent and have them write up. It takes a agent that specializes in it. Great topic Matt!
Michael Gabardi, great info and thanks for sharing especially the fact about how your local ins. agent won't know how to structure one of these policies. Appreciate you watching and sharing your insights!
Pay yourself 1k a Month or more when you can on a Monthly basis. Keep cask on hand and manage your money. Mentally discipline yourself to pay yourself. It works. You do not need a Middle Man to manage your money people. 10 a year into an insurance policy with a death benefit. Sound good. Control your own money discipline you can do it save plan and believe
Thank you so much Matt! Much appreciate this video. What about MECs? Depending on how you let plan gets structured MEC limits would be a huge issue. Would you guys be able to talk about MEC limits please?
John Anderson, yes you definitely can't contribute more than your MEC limit or it becomes a Modified Endowment Contract and a lot of the tax advantages are lost. Obviously, this is where structuring the policy is critical. Great idea about discussing this on the next IBC video! Thanks for watching.
This was a externally great video I learned a lot and I appreciate the fact of you in a way playing devil’s advocate and explaining the good with the not so good in a investment strategy like this one
Also you can borrow against the IUL and earn an interest on the amount you borrow at the same time and pay off your mortgage or down payment for a new property.
VIP Financial Education thanks for being upfront, I watch 4 videos and while the information was good I can’t be apart of it right now. So it was a time waster.
I'm still unsure about this concept, only for the reason that it's an excellent idea when your young, however, the older you are (like me), the less "financially appealing" it becomes. Mostly due to value of "Death Benefit" significantly declining, as you age. Also, the "Cash Value" doesn't start to equal what you put in it for multiple years. Not appealing to someone older.
Patrick, while these are definitely considered long term contracts where the longer you have them to grow, the better but you can structure your policy to have a level or increasing death benefit. You are correct that the cash value doesn't equal to what you put in for multiple years... again why it's certainly considered a long term contract. These can be a good idea for older folks when parking a lump sum of dollars into them, again when structured properly with the death benefit too. Hope that helps and thanks for watching!
Nerma Jackson, the only way someone over 60 could be ruled out would be based on their health condition. In order to answer your question of if this is good for you, it really depends on your financial goals and needs. I would highly suggest speaking directly to MC Laubscher in order to see if this is a good fit and if you would qualify. If you would like an introduction to set up a time/day just shoot us an email at: ninja@vipfinancialeducation.com. Hope that helps and thanks for watching!
I would like to add one last thing for your viewers, Matt. It sounded like MC stated that guaranteed growth rate of 4% And 6-7% dividend. I think he meant 6-7% total return. But keep in mind that a 7.5% return in the market, such as a 401k investment (taxable) equates to a 5.59% tax-free account :) Assuming average American household at 22% federal tax rate and average 4.5% state tax rate.
Also, a 401k or IRA's offer no protection from a lawsuit, judgement or garnishment. Any good attorney can pierce your bank accounts or brokerage accounts and even take your businesses and your home. They would all happily give up your money to a collection or claimant. Also, Banks and brokerages offer no protection from hackers and id thieves. Maybe they could get some kind of judgement from your Whole Life Policy (doubtful) and hope they live longer than you, but I would just start a new policy.
Hi, I am from South Africa and most of the Life insurance companies I researched are traded on the stock market, therefore not mutual. How can I use the infinite banking concept in this situation ?
Nompumelelo Hoboyi, I would recommend reaching out to a local agent that might have access to other networks of life insurance companies that are mutual instead of stock. Hope that helps and thanks for watching!
Gabriel Rockman, depending on your financial goals, one aspect is your risk tolerance as each one has different risks. A Variable Universal Life (VUL) is the most risky since it goes up and down with the stock market and a Whole Life policy is the most conservative with the IUL being moderate risk. Hope that helps and thanks for watching!
@@VIPFinancialEd That makes sense. I've chosen an IUL with moderate risk. I really like the idea that instead of the living expenses portion of my retirement savings disappearing each year, that they actually stay in my retirement savings, but instead I have a loan for that amount, and the interest rate on the loan should be lower than the expected growth of the cash value. When I've got loans for 20+ years of retirement savings, it'll be a huge increase in the growth rate of my retirement savings to be gaining a net growth of maybe 2% or 3% on 20+ years worth of living expenses. But that's where the moderate risk of the IUL is better than the larger risk of the VUL for me - having loans for 20+ years of retirement expenses is certainly risky. It looks like the key to doing this strategy safely is the gap between the cash value of the policy and the loan balance. I could safely have millions in loans as long as there's a gap of millions more in cash value than in outstanding loans. That's where the possibility of the cash value dropping in a VUL scares me, and why I prefer the cash value protection of the IUL.
@@VIPFinancialEd My policy is currently only for $3600/year, but I'm likely increasing it to $12000/year next April and putting in a lump sum of $40k. Right now it's just a small part of my retirement savings, but I'm considering making it a centerpiece of my retirement savings. Is it unwise to make a cash value life insurance policy the home of more than half of your retirement savings? What's your advice to someone that is considering making this a centerpiece of their retirement plan, supplemented by a Roth and a 401k, rather than making the Roth and 401k the centerpieces of their retirement plan and just using cash value life insurance as just a supplement?
Alex G, it really depends on your financial goals with a policy like this. I advise working with a person who is not only qualified but knows how to structure a policy that best fits your needs and goals. Your more than welcome to take advantage of our in house specialist, MC Laubscher as seen in the video by emailing us at: ninja@vipfinancialeducation.com to schedule a more personal conversation. Hope that helps and thanks for watching!
Can`t see this Infinite Banking Concept holding up when the digital currency monetary system reset takes place to purge all cash and tangible fiat vehicles from the existing system. VIP Financial Education please defend the continuance and survival of the IBS.
Suzanne Ito, if that ever happens which I'm not convinced it will, these policies are still assets and would be converted into the current digital currency that would take place of the U.S. dollar. These policies also have many other benefits to them that are in the form of a contract between the carrier and policyholder and the insurance companies are not in the business of defaulting on their promises as that's bad business. Of course there are come companies to stay away from when doing this type of policy structure. Thanks for watching!
lenny delatorre, it depends on how the policy is structured but in my experience it usually takes about 2 years before the policy will allow this. Again it depends on how it's structured and I would recommend reaching out to our in house IBC expert, MC Laubscher which you can email us at: ninja@vipfinancialeducation.com. We can get you in contact with him to answer any questions that pertain to your personal situation. Thanks for the question and watching!
If were taking whole life why not get just get term life insurance and invest the difference since whole life is more expensive. If you die you only keep one or the other? That doesn't sound right since its your investment money Sounds like when you borrowing your own money. Does that money have to be paid back with intererst? 🤔
Ada Hampton, once the term coverage ends then the price quadruples, from there most people will cancel it and leave them with no coverage. Term also doesn’t build cash value as whole life does which allows you to grow your money safely. When taking a loan out of a whole life policy, you do pay interest on the loan but the money never leaves your policy so that money is still collecting interest. In other words it acts as a wash. Hope that helps and thanks for watching!
Sadrack Dericier, since you are only allowed to borrow the cash value amount, they are technically using this as collateral for loans. Hope that helps and thanks for watching!
When you take a loan against your policy, you have to pay interest? And the interest goes to the insurance company? So your money is left in the policy to continue to compound and grow... but when should you access it? It sounds to me like I should just leave it there to be passed down to my heir through a death benefit. ????
Minhi Minh, that is exactly how it works! It really depends on your financial goals as some folks use it to invest in real estate or others use it how you describe to, or you can let the cash value build up and turn it into a retirement income stream. So many uses for these types of policies. Let us know if you have any other questions. Thanks for watching!
Your beneficiary will only get policy face value. The cash value will goes to the insurance company. If you take a loan against it. And event happen to the policy holder that took a loan out. The insurance will subtract the policy face value from the unpay loan's. Any money left over from the policy face value will be given to the beneficiary.
You can't have a level premium for an ever-increasing risk (getting older and closer to dying each year) without an ever increasing reserve (cash value) to offset it!
Are there any questions you'd like us to cover in our next video on the infinite banking concept?
VIP Financial Education does ibc require a physical or medical check up? Also, what is a good amount to get started with?
Jakem723, sometimes but most insurance carriers can use technology to access your medical history through the Medical Information Bureau to verify everything checks out. If there is a red flag found there then they may request a physical. In other words it does depend on each individual applying. A good amount to start with will depend on your finanical goals and recommend chatting with a licensed professional such as our Cash Flow Ninja, MC. If interested, please send email to: ninja@vipfinancialeducation.com. Thanks for watching!
Does a lump sum policy make sense if you inherit money and are over 60 years old? We have 2 monthly policies already.
I've heard that even though you yourself can't qualify, a policy can be taken out for a family who is a lot healthier with you as the policy owner. How does that work?
Far and away the BEST video I've seen on the infinite banking concept. From the explanation of what it is, what is best used for, and especially at what point of your financial journey you are on as to whether or not it's a good fit. Seems like many other channels seem to skirt around specific dollar amounts where this concept could work for you, when it should be the number 1 consideration, instead of overextending yourself monetarily for something that isn't even truly needed at a certain time. Like you said, sometimes it is nice to be ruled out.
Jesse Mercer, very glad you enjoyed the video and content as it saves so much time to know this type of concept isn't for everyone. Thanks for watching!
I
THANK YOU FOR ASKING ALL OF THE HARD QUESTIONS. YOU ARE THE ONLY PERSON I HAVE SEEN DOING THIS.
joel james, your very welcome and appreciate you watching!
Matt, you guess today was a breath of fresh air. I have been studying the IBC concept for a few weeks and many videos. Most move over key points and today I was just perfect. I appreciate this so much. Keep up the great work and keeping everyday people informed.
Bee Kaye, your very welcomed and glad you found the video helpful! Thanks for the kind words and keep up the good work of financial education :)
Matt, good to see you bring up IBC again. A couple of comments. MC didn't cover this when you were questioning the death benefit. The death benefit always has to be higher than the cash amount by a certain amount (MEC limit) to keep the policy from becoming a MEC (modified endowment contract), or simply stated....TAXED. As long as the policy is structured properly the policy is always tax free, even upon distributions at retirement. The death benefit increases as the cash grows to ensure the MEC is never breached. This is done by a specialized rider. For your viewers, this is not a typical whole life policy that you can go down to your insurance agent and have them write up. It takes a agent that specializes in it. Great topic Matt!
Michael Gabardi, great info and thanks for sharing especially the fact about how your local ins. agent won't know how to structure one of these policies. Appreciate you watching and sharing your insights!
Pay yourself 1k a Month or more when you can on a Monthly basis. Keep cask on hand and manage your money. Mentally discipline yourself to pay yourself. It works. You do not need a Middle Man to manage your money people. 10 a year into an insurance policy with a death benefit. Sound good. Control your own money discipline you can do it save plan and believe
Business Manager, great advice and thanks for sharing!
Extremely underrated video. Nice job!
Eli Grelecki, thanks for your comment and watching!
I appreciate the hard questions being answered thank you so much
April Townsend, your very welcome and thanks for watching!
Thank you so much Matt! Much appreciate this video. What about MECs?
Depending on how you let plan gets structured MEC limits would be a huge issue.
Would you guys be able to talk about MEC limits please?
John Anderson, yes you definitely can't contribute more than your MEC limit or it becomes a Modified Endowment Contract and a lot of the tax advantages are lost. Obviously, this is where structuring the policy is critical. Great idea about discussing this on the next IBC video! Thanks for watching.
John Anderson you can add cheaper insurance (DOT) on the whole life policy that will help to protect of getting a MEC
I'm new to this information ,what DOES MEC stand for. Thanks in advance.
both are good communicators. appreciate it.
Celio Almeida, your very welcome and glad you enjoyed it!
This was a externally great video I learned a lot and I appreciate the fact of you in a way playing devil’s advocate and explaining the good with the not so good in a investment strategy like this one
Matthew Keith, glad you got a lot out of the video as I do like bringing both sides of any subject to our content. Thanks for watching!
Also you can borrow against the IUL and earn an interest on the amount you borrow at the same time and pay off your mortgage or down payment for a new property.
Arup Bhanja, yes... one of the great benefits to these policies, thanks for sharing!
Matt, you finally got the right person that properly represents the Infinite Banking Concept
Samuel Ziegler, glad you enjoyed the video and our new IBC expert. Thanks for watching!
Penn? Sounds like he is from Australia.
Good stuff. Keep up the vidz.
Good ear on the accent, but MC's not from Australia - he's originally from South Africa and lives in Pennsylvania now.
Thanks for the comment Michael!
Michael Samulak, will do and glad you enjoyed it! Thanks for watching.
This is the best most honest video I had seen on IBC, how do I be apart of your team when I want to come onboard???
dtrelz music, you can send an email to: ninja@vipfinancialeducation.com when you are ready. Glad you enjoyed the video and thanks for watching!
VIP Financial Education thanks for being upfront, I watch 4 videos and while the information was good I can’t be apart of it right now. So it was a time waster.
The interviewer is awesome 👏. He was speaking my mind. OMG 😳
Rach Okah, thank you for saying that and appreciate you watching!
Shhaanqa
Very good interviewer, asked some challenging questions
Kendrick M., glad you enjoyed it and thanks for watching!
I'm still unsure about this concept, only for the reason that it's an excellent idea when your young, however, the older you are (like me), the less "financially appealing" it becomes. Mostly due to value of "Death Benefit" significantly declining, as you age. Also, the "Cash Value" doesn't start to equal what you put in it for multiple years. Not appealing to someone older.
💯💯 age / health is probably the biggest road block I’ve identified too.
Patrick, while these are definitely considered long term contracts where the longer you have them to grow, the better but you can structure your policy to have a level or increasing death benefit. You are correct that the cash value doesn't equal to what you put in for multiple years... again why it's certainly considered a long term contract. These can be a good idea for older folks when parking a lump sum of dollars into them, again when structured properly with the death benefit too. Hope that helps and thanks for watching!
Thank you, I thought you were going to rule 60 & over out. I have a pension with a 401K & 457 and wondering if this would be good for me.
Nerma Jackson, the only way someone over 60 could be ruled out would be based on their health condition. In order to answer your question of if this is good for you, it really depends on your financial goals and needs. I would highly suggest speaking directly to MC Laubscher in order to see if this is a good fit and if you would qualify. If you would like an introduction to set up a time/day just shoot us an email at:
ninja@vipfinancialeducation.com. Hope that helps and thanks for watching!
I would like to add one last thing for your viewers, Matt. It sounded like MC stated that guaranteed growth rate of 4% And 6-7% dividend. I think he meant 6-7% total return. But keep in mind that a 7.5% return in the market, such as a 401k investment (taxable) equates to a 5.59% tax-free account :) Assuming average American household at 22% federal tax rate and average 4.5% state tax rate.
Michael Gabardi, thanks again for the insigts and very true about comparison!
Also, a 401k or IRA's offer no protection from a lawsuit, judgement or garnishment. Any good attorney can pierce your bank accounts or brokerage accounts and even take your businesses and your home. They would all happily give up your money to a collection or claimant. Also, Banks and brokerages offer no protection from hackers and id thieves. Maybe they could get some kind of judgement from your Whole Life Policy (doubtful) and hope they live longer than you, but I would just start a new policy.
The cash value is PART of the death benefit created by premiums paid coupled with investments made by the insurance company.
7476harleyd, so true and thanks for sharing!
Hi, I am from South Africa and most of the Life insurance companies I researched are traded on the stock market, therefore not mutual. How can I use the infinite banking concept in this situation ?
Nompumelelo Hoboyi, I would recommend reaching out to a local agent that might have access to other networks of life insurance companies that are mutual instead of stock. Hope that helps and thanks for watching!
How should a person decide between a VUL, IUL, or Whole Life when setting up an infinite banking system for themselves?
Gabriel Rockman, depending on your financial goals, one aspect is your risk tolerance as each one has different risks. A Variable Universal Life (VUL) is the most risky since it goes up and down with the stock market and a Whole Life policy is the most conservative with the IUL being moderate risk. Hope that helps and thanks for watching!
@@VIPFinancialEd That makes sense. I've chosen an IUL with moderate risk.
I really like the idea that instead of the living expenses portion of my retirement savings disappearing each year, that they actually stay in my retirement savings, but instead I have a loan for that amount, and the interest rate on the loan should be lower than the expected growth of the cash value. When I've got loans for 20+ years of retirement savings, it'll be a huge increase in the growth rate of my retirement savings to be gaining a net growth of maybe 2% or 3% on 20+ years worth of living expenses. But that's where the moderate risk of the IUL is better than the larger risk of the VUL for me - having loans for 20+ years of retirement expenses is certainly risky.
It looks like the key to doing this strategy safely is the gap between the cash value of the policy and the loan balance. I could safely have millions in loans as long as there's a gap of millions more in cash value than in outstanding loans. That's where the possibility of the cash value dropping in a VUL scares me, and why I prefer the cash value protection of the IUL.
@@VIPFinancialEd My policy is currently only for $3600/year, but I'm likely increasing it to $12000/year next April and putting in a lump sum of $40k. Right now it's just a small part of my retirement savings, but I'm considering making it a centerpiece of my retirement savings.
Is it unwise to make a cash value life insurance policy the home of more than half of your retirement savings? What's your advice to someone that is considering making this a centerpiece of their retirement plan, supplemented by a Roth and a 401k, rather than making the Roth and 401k the centerpieces of their retirement plan and just using cash value life insurance as just a supplement?
im 17 & im glad im ahead of the game
Jordan Universe, that's fantastic and keep up the good work. Thanks for sharing!
Ever heard of Tamra, DEFRA in IUL how to get tax free and link to S&P500 without losing a cent but often making 11-15% annually?
Arup Bhanja, yes a indexed universal life policy is a great strategy for some folks. Thanks for watching!
What would be the best structure policy . If I was going to go look for a policy and what I want to know in my policy .
Alex G, it really depends on your financial goals with a policy like this. I advise working with a person who is not only qualified but knows how to structure a policy that best fits your needs and goals. Your more than welcome to take advantage of our in house specialist, MC Laubscher as seen in the video by emailing us at:
ninja@vipfinancialeducation.com to schedule a more personal conversation. Hope that helps and thanks for watching!
still working with Fortune for IBC structures?
Dave Thomson, not anymore as we are using MC Laubscher instead. Thanks for watching!
Great video guy make some videos on bankruptcy benefits
Aditya verma, glad you enjoyed it and will put that on the list for future videos. Thanks for the idea!
Hi MC who are your favorite 3 whole life companies for these concepts
Paul Harvey, I would have to reach out to MC for the answer. Stay tuned and thanks for watching!
@@VIPFinancialEd Thank you, please do find out
Could you share the names of some of these 100+ y/o institutions please?
Miss Telly, some include: Ameritis, Mass Mutual, Mutual of Omaha, NY Life, Western Mutual. Hope this helps and thanks for watching!
@@VIPFinancialEd what about Canada?
Can`t see this Infinite Banking Concept holding up when the digital currency monetary system reset takes place to purge all cash and tangible fiat vehicles from the existing system. VIP Financial Education please defend the continuance and survival of the IBS.
Suzanne Ito, if that ever happens which I'm not convinced it will, these policies are still assets and would be converted into the current digital currency that would take place of the U.S. dollar. These policies also have many other benefits to them that are in the form of a contract between the carrier and policyholder and the insurance companies are not in the business of defaulting on their promises as that's bad business. Of course there are come companies to stay away from when doing this type of policy structure. Thanks for watching!
I have a quick question, so lets say i deposit 100k of my own money into this policy, do i still have that 80 percent rule that i can take back out
lenny delatorre, it depends on how the policy is structured but in my experience it usually takes about 2 years before the policy will allow this. Again it depends on how it's structured and I would recommend reaching out to our in house IBC expert, MC Laubscher which you can email us at: ninja@vipfinancialeducation.com. We can get you in contact with him to answer any questions that pertain to your personal situation. Thanks for the question and watching!
If were taking whole life why not get just get term life insurance and invest the difference since whole life is more expensive. If you die you only keep one or the other? That doesn't sound right since its your investment money Sounds like when you borrowing your own money. Does that money have to be paid back with intererst? 🤔
Ada Hampton, once the term coverage ends then the price quadruples, from there most people will cancel it and leave them with no coverage. Term also doesn’t build cash value as whole life does which allows you to grow your money safely. When taking a loan out of a whole life policy, you do pay interest on the loan but the money never leaves your policy so that money is still collecting interest. In other words it acts as a wash. Hope that helps and thanks for watching!
So infinite Banking is using a dividend paying whole life insurance policy as collateral for loans? Just trying to understand
Sadrack Dericier, since you are only allowed to borrow the cash value amount, they are technically using this as collateral for loans. Hope that helps and thanks for watching!
When you take a loan against your policy, you have to pay interest? And the interest goes to the insurance company?
So your money is left in the policy to continue to compound and grow... but when should you access it? It sounds to me like I should just leave it there to be passed down to my heir through a death benefit. ????
Minhi Minh, that is exactly how it works! It really depends on your financial goals as some folks use it to invest in real estate or others use it how you describe to, or you can let the cash value build up and turn it into a retirement income stream. So many uses for these types of policies. Let us know if you have any other questions. Thanks for watching!
Your beneficiary will only get policy face value.
The cash value will goes to the insurance company.
If you take a loan against it. And event happen to the policy holder that took a loan out.
The insurance will subtract the policy face value from the unpay loan's. Any money left over from the policy face value will be given to the beneficiary.
So it doesn’t matter if you put in the minimum or put in more the payout is the same?
I like this guy
Akimo Therapy, glad you enjoyed the video and thanks for watching!
You can't have a level premium for an ever-increasing risk (getting older and closer to dying each year) without an ever increasing reserve (cash value) to offset it!
7476harleyd, thanks for sharing and watching the video!
Nice photoshop bod!
Luz Castillo, ha, ha, ha,... glad you enjoyed it!