How Infinite Banking Works (Part 2) | Wealth Nation
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- Опубліковано 7 лют 2025
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UNDERSTANDING the concept of banking is easy. After spending a lifetime dependent on someone else's system, APPLYING this concept takes focus and discipline. Regarding How Infinite Banking Works, the only thing we change in our traditional flow of money is replacing our savings account with a whole life insurance policy. Instead of borrowing from the bank, we borrow from our life insurance policy. Let us break everything down to ensure you don't get lost in translation. A large part of lifestyle design is our development of personal finance. If you want to own your lifestyle, you must put yourself in a position to keep more money. In this case... copy the banks. Our debt creates cash flow to the bank. If we own our own debt, we can keep that cash flow for ourselves. Copy precisely what the banks are doing and apply their wealth-building strategy.
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Wealth Nation provides content for informational purposes only. While we aim to offer accurate and up-to-date information, always consult with qualified professionals before making any retirement, tax, or legal decisions.
The Infinite Banking Concept® is a trademark of Infinite Banking Concepts, LLC, with which Wealth Nation is not associated or endorsed.
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Thank you for the info, but there was no discussion of the interest paid to borrow your OWN money from the policy, the fees associated with a whole life policy that reduces your cash value, the high cost of whole vs term insurance and the ability to invest the difference in an investment vehicle that gives a much higher rate of return. I appreciate the level of detail re: the interest we pay on our other debts, but this crucial point required more specificity.
Valid Point
That’s because this is a fee harvester product for the insurance company. The balance sheet doesn’t make sense. It is there just so that the insurance company can collect fee on the channeling of money through them.
I love you guys, thank you for breaking in so easy other channels are just complex
That credit card example is phenomenal !!
Thank you Marissa Romero!
For someone who has an untrained eye or have not been fully educated on how a WL policy works You are correct. But for those in the know, they will not do this.
@@commonsense2dollars are you in the know?
Hi Marrissa! you gives great advice, hope you not using WL policy. This extremely bad advice. I came here from your channel, because of the great info you shares.
Still with you....on to part-3
very informative
I Am Finding This To Be An "OUTSTANDING EDUCATIONAL TOOL", That Simplifies The Process For My Clients. Thank You 😇🙏!
Question? If borrowing the money from the policy don’t you have to pay that back with interest before you can save the $8700? Since I don’t have a whole life policy, why not just pay off the credit card first instead of putting into a policy to then take out and pay it?
It's depends on what you are trying to do. If you are trying to get out of debt, that's an option. Checkout Velocity Bank.
What life insurance companies do you recommend?
So what exactly is the recommended type of life insurance policy one would look for this to actually work?
what whole life insurance company do you recommend?
That’s what I’m trying to figure out. They didn’t have any recommendations
@WealthNation You must also inform your viewers how long it took that $11,000 premium policy to build up $6,000 in cash value before they could even consider the infinite banking concept. And additionally, if they were just starting out with a life insurance policy to use to pay first and not a liquid account to build an emergency fund, that would be harmful
I guess they wanna just sell you something so gotta make it look good right?
How would I put money into the insurance policy .
This is the worst BS I ever read...ppl go the traditional route this is BS
@@LadyChelleish You don't understand the concept...however, if you do not have credit cards or a whole life insurance policy, this plan won't work for you...
This was the exact question that I was wondering while watching the video. How long DOES it take for the insurance policy to build up $6,000 in cash value. I know that it isn't instantly. So, that part should have definitely been explained.
im not sure how practical this is. i just got a quote for one my one year old daughter. her second year the cash value is only $800. how exactly are you getting 6k cash value in one year? how much are you paying per month? how could you omit that information?
The premium for this particular policy is $10k on a 30 year old. Here is a video we did some time ago showing hoe much we borrowed in the first few years to payoff credit card debt. ua-cam.com/video/0X1EDkNWLpg/v-deo.htmlsi=x-6PIX-AuaNS1sBq
Thank you and God bless. My mind is blown. About to read Mr. Nash's first book.
Thank you for this video and using the images-I find it very helpful. To summarize your video, essentially you are moving the debt to a different loan that has a lower interest rate. Meaning the same monthly payment pays down more principal as there is less interest cost. Correct? I really hope you do a video explaining what you should do if you do t have credit card debt etc. I struggle understanding how paying a utility bill etc would be beneficial or how taking a loan from the policy would be a good idea if you can get a loan somewhere else at a lower rate (heloc for example). Thank you as always!
Are you two selling insurance? I'm wondering why there is no mention of any of the negative aspects of this method?
Great video guys! But wouldn't you have to pay back the money borrowed from the policy with interest similar to how you pay interest to the bank?
Thank you for watching our video. Great question! Yes, you do pay interest to the insurance company. The difference is you choose the terms to pay back the loans to the insurance company.
Can you do velocity banking at the same time as infinant banking?
Yes, but your time and map out your plan....also, you will need cash, credit cards, line of credit, or whole life insurance to reap the maximum benefits.
Do u have to have a savings account to move it to a whole life policy or can I jus open a whole life policy and do it that way?
How did you calculate the 41 month payback period?
Hey, I believe it came from the amount owed and setting up how long that person needed to pay off the amount. Ex. If you owed a credit card $500 and you told them you could only afford $25 per month then they would divide the $500/$25 which would be 20 months of paying $25 to pay it off. I think they used examples by the way. Hope that helps.
@@AishaIsrael_Benjamite thanks
This is Golden!!
Maybe I missed it but when you take a loan from your policy don't they charge interest until it's paid back?
Yes they do!
Sure do! and if you pass away, the loan plus interest counts against your life insurance that your family gets
I figured that
From what I understand, you can't pay the whole amount of interest back without hitting the MEC limits?
from where do you pay your bills?
Thank you family...very informative
Ok, I have questions:
1 - on a whole life policy there are mo they payments. Right?
You have to pay average 80/ month,
Hoping will it take to get a large number of cash value from insurance Policy?
amazing teaching definitely subbed
@@WealthNation anytime what is the best company to go with for the plan you guys have that's the one I wanna do
Thank you!!!
I LOVE THIS!!!
@WealthNation but you are not saying the interest cost that the life insurance policy charges for that loan. I realize the interest on that policy is much much lower than the credit card, but it still exists. You should point that out to the viewer. The interest being charged on your policy is not your money, it is paid to the insurance company.
Did you take their MasterClass, they explain everything there...I have one, the interest rate varies, but the last loan I had,which I paid off last year was 5%, but since I continue to pay back the loan, the interest rate on the Cash Rate paid monthly and the cash value continued to grow. I am glad I purchased it when I was young because at my age now, I couldn't afford it, if I had to purchase it at today's price...
Is this a good program for people with pre-existing conditions, such as Cancer?
Does anyone know which mutual company will provide whole life insurance using an ITIN number..?
What insurance company's do you get the whole life policy?
You two have a great teaching manner, good and informative video! Thank you... #Hotep
@@WealthNation not yet, have much to learn from the two of you still...
What is the interest rate on the loan from the cash value?
standard in the industry is 5-8%
Yes it sounds good and I did take a loan from my life insurance to help buy an appartment that I made 35k when I sold.. But loans from the insurance policy costs interest right?
yep! 5-8% interest to borrow your "savings"
sweeeeeeeetttt. Awesome video you guys .
does this work in Jamaica
Okay this concept is great. However, did you think about people with pre existing conditions that don't qualify for any life insurance? What is their option for self banking?
Did you think about that? I have lupus I don't qualify for any life insurance ever. My husband doesn't qualify for a life insurance policy either with heal issue's. So where do we fall into this system?
Get a policy on your kid, or a niece or nephew.
what is the tax implication in taking money out of ins policy
No consequences. Life Insurance loan is not taxable. You purchased the insurance with pre-taxed money
Thank you for your program ....I am wondering if this concept applies to Canadians?
The problem with your example of using the life insurance to pay off your CC was good, but one would have to assume you had the life insurance policy funded first. I'd say if someone has a life insurance policy (whole) then they are smart enough not to have that much on a CC and paying 19%+ interest.
exactly...
Don't assume. Things happen and many are left with a spouse debt or emergency.
I don't get the life insurance policy. How does someone just automatically give you $11,000? Are you paying off the life insurance policy as well? How much is that costing? I have heard of it before but I think it was explained how the policy works but here it just kind of shows up and is spendable cash. You said the interest rate on the insurance policy is 4% so if we take 6k out of it are we paying 4% interest on the 6k we took out?
Don't have consumer debt anymore but I will set this up for my daughter that's 18. This concept is great!!
Great info.
But it only works if you already have Whole Life Insurance with more than $6,000 of the cash value in it. This concept can also work with the 401K and you pay the interest to yourself.
What about people that have Terms Life, how are they going to do this? Theirs no way you can loan on a Terms Insurance policy or even sell it. Yes, you can convert Terms to Whole Life with higher premium payment and smaller face value. Even if you convert it, it will still take time to build up the cash value.
Exactly!!
Did you just say that I have to pay $11,000 in insurance policy premiums in order to get a $6,600 value in that policy?! So i'm already having to save the $$11,000 in the first place. and I lose $5,400 up front in order to then save myself $212 a month for 4 years?! the real question is how long does it take to recoup that initial $5,400 drop in money value, just so that I can 3rd party lines of credit? and if you could save that initial $11,000 why would it make sense to have that much credit card and auto debt in the first place??
The $5400 is part of the agents commission. Just say goodbye to that $5400 after your first 30 days of policy ownership in most states of 🇺🇸
Seems like a series of 6mo cd's at 1% is a better deal. Keep your petty cash is that weak savings account for 5mo, get liquid every 6mo, and roll that money into debt or back into the cd as appropriate.
No, that was not said. The life insurance policy comes with a cash value and death value. Those values continually grow. The cash value is contingent on the amount of policy. I have a whole life policy that is about 40 years old - it is paid up for life, but I continue to fund it. I got a loan from it once to replace a roof on my rental property, and repaid it. My cash value continue to grow. It is a good concept to use.
@@jaaziel9 I never said anything about the values not growing or that it was inherently bad, I'm just saying that the cash value of the policy is not equal to the amount invested into the policy in the first place, and that is exactly what they said in the videos. that it costs $11,000 to purchase a policy that has a cash value of $6,600. I know it also comes with a death benefit, but that is kinda besides the point if you are using it as a money making account. For one, you won't care about putting money into it once you are dead. and for two, for those touting it as a good return on your investment it is not, because they always leave out the fact that you lose money right off the bat. they never account for the initial $5,400 lose at time of policy purchase.
@@jaaziel9 your cash value will never grow more than the face amount of the policy. Over that same 40 years you could have earned a better rate of return than the WL cash value. That insurance company has been and is still loving you. As note, if you have a WL policy and not a UL with option A or 2, your beneficiary will not see that cash value.
You guys are making easy hard...After watching both part 1 and 2, this is like 5 minutes of good information crammed into 31 minutes. You need to get to the hard math much faster.
Interesting but don't you pay interest on the loan you take from the policy? So what is the difference your still paying interest aren't you? Maybe I am not fully understanding someone please clarify.
Martin Burris you are paying interest, but the difference is, you’re paying yourself the interest versus paying the bank.
I can borrow my own money from my 401k and there is a 2.5% interest- so say if I borrowed $6000 and it takes me 2 years to pay it back and once I’ve paid it back, it equals $7300- that’s $7300 I’ve paid myself
If I borrowed that same money from a bank the additional $1300 in interest would be given to the bank and not me
Why not just can it the insurance policy itself not just can available but the whole policy.
I’m still trying to figure out how you got 41 payments of $212.65 to pay back the $6600? Did I miss something? Are there more fees?
They are adding the interest on that 6600 you would have paid if you made every payment over 42 months
Oh my gosh you are so pretty. Your skin is glowing and I can tell you're happy. Many blessings to both of you.
I really wanted to like this concept, however who would keep paying credit card minimums if you can afford an $11k whole life premium? You will still pay interest after you take a loan from the policy, right? Maybe I missed it.
It's just a dumb idea.
There is a large amount of information you guys are missing. Loans are unstructured and can be paid off however you like. The money you are loaned isn’t yours, it’s actually the insurance company’s. Your money is just used as collateral and continues to compound in interest while u are using the loan.
@@christophervang9308 and the other side of your point....?
Is this available outside United States?
Isn't it better to get a term policy, pay 1/3 to 1/4 less for same coverage, then invest in good growth stock mutual funds? Is there something that I'm missing?
No, You cannot use the term policy or mutual funds as a tool to get out of debt...
Don’t forget you had $11,000 in “premium” why not just use $6000 of the $11,000 to pay off the Lon and invest the rest? They skipped over that. But kudos to these two. They are making $50k a month selling this.
How can I get started!
This is too distracting. I mean, Carmen is just beautiful. :) Kidding aside, I want to know how that $6000 could 'just' be taken out from the whole life insurance to pay off the credit card. (Or maybe, I'm getting ahead of Part 3...) But, thanks much for this video. Very enlightening. On to Part 3... :)
wow. my great aunt told me when i was 19 to get a life insurance policy. but she never told me why. Lord have mercy . I would have been a millionaire by now if i new this then. Cool. still ain't too late.
No you would not have. Whole life policies have done more harm than good in our communities. Only ones getting rich are the Insurance Companies. Why would you save your money somewhere you have to pay to use it. Find an annuity you are better off.
If I have 11k to pay premium for whole life insurance, why shouldn’t I pay off credit card debt first, buy term insurance which is much cheaper ? That also increases my Cashflow..
Your credit card interest payments will continual eat at the value of your credit card. Term life cant be sold for cash and has many exceptions to receiving the full benefit.
Tracking The Market Agree but in whole life insurance you get cash value only when you cancel policy and till date you already paid hefty premium. On death cash value goes to insurance company. You only get face value. Please read policy fine prints carefully before signing whole life insurance.
@@TerryJulianLive When you take out a loan against your whole life insurance (which is how infinite banking works) you have to pay back that loan with interest! It's basically the same thing you do with a credit card, but Infinite Banking is just a fancy word to sell you guys on the concept lol. This is why Financial Education is important :) Instead by term insurance and invest the rest in better investment vehicles.
@@patilumeshg ..."in whole life insurance you get cash value only when you cancel policy and til date you already paid hefty premium" is not true, it depends on the type of whole life policy you have. My policy started building cash value the first year of purchase,, and it came with a Guaranteed interest rate of 4% and a current rate of 11%. The third year after I had it, i borrowed a $1500 loan and paid it back, my monthly payment was divide between the monthly cash value and premium. This site has open my eyes, I am going to take another loan and pay off my credit cards. Unlike Mutual Funds, I do not have to pay any taxes...
Could this work with a certificate loan?
What "Whole Life" policy would you recommend?
Because I have no credit card debt living in Italy would it make sense to take a loan from my life insurance to pay my house when the interest is 1.2%
absolutely not. 1.2% interest is super low. Just pay extra to the balance to pay it off sooner if you are able. and make sure your payments go directly to the principal after you pay the monthly payment to pay it off sooner
Start the run through at 5:14
THANK YOU for these time stamps! I was scrolling for your comment!
@@SacramentalASMR 😆👌🏾✌🏾
What insurance policy do you recommend, can it be any whole life insurance company or policy?
Whole life is not a good policy to own it's a rip off. Read the fine print... Your loved ones will have to choose between the face amount of the policy or the savings! Don't get both!!!
@@kristalbldwn thanks for the insight, where can I get a policy?
That’s not necessarily true, if you have the death benefit option on INCREASING D.B the beneficiary would actually get both.
@k. Baldwin I can take the time to educate you on your options. I’m a licensed agent. Message me
@@jonathanrodriguez4627 where can i contact you?
I love both of you. You are beautiful in style, grace, etc. However, I love absolutely nothing about infinite banking. I did work for the insurance industry for over 2 decades.
Raj Beekie so you wouldn’t recommend doing this method? Why?
Can you kindly elaborate on the things that you don't like in regards to infinite banking? Thanks in advance.
@@Sci-Fi_Fan296 It is really complicated. So, here are a few of my reservations. There is a cost to run an insurance policy. There is also the death claim related to insurance. In addition to the costs, there is a 4-6% fee on money that is put into the cash value of a policy. Let's say your policy premiums are paid, if you drop another $10,000 into the cash value or "bank" only about $9,500 shows up in the account. The insurance took the $500. In addition, this money only grows by about 4-6%. At the end of the day, you will get about 2% on your money in the policy. Fees and other costs reduce your overall return. Yes, it is complicated.
It's still the American way of pyramid scheming. Everyone wants a portion of your money for services regardless. The system is controlled by people who look out for certain group of people. They make the laws that regulate money and credit. Wealth less people are always preyed upon.
Whole life insurance has a saving element inside of it. But it is very expensive also the rules in Canada are different. Actually, my father sold a lot of whole life insurance I think Eft is way more profitable. What do you say a matter of fact my mother still has whole life insurance. Anytime you borrow your own money you pay interest back to the insurance company, now they make money on my money again. Maybe you can tell me. Why in Heaven name is it my bank? Really would you tell me? Where not financially free, and this has been 50 years later or maybe more.
So, the loan percent is 5%. And the interest earn is 4% from the policy. Now, 5-4 =1%. The one percent is in favor to the insurance company. (Right).... and I have no problem with this. Especially, when the credit cards average is 25.24% That leaves me the responsibility to call around to the commercial banks, credit unions, military branches and others to find the same percentage or better. Remember, the goal is to get the math to a 1% rate for paying the bills off. The Second goal is to put myself in position to save your (cash flow) in building an amount to take care of your funeral expenses and cash legacy for my family. - You only put insurance on things you do not want to pay for.- thank you Darius and Carmen
Same, we have segregated accts that will compound your interest in the segregated acct and let you pull a loan off of the account while the amount in the segregated account is earning interest. Your balance in your account does not change and continue to earn interest.Same, the loan was not drawn for the segregated account and as you pay off the loan the balance head to a zero balance. And as you pay off the loan velocity happens. More funds become available for your next loan. Same, because of the large amount in the segregated account the interest earn is larger that the interest paid on the loan. Did I missed anything. Oh, the dividends, solution, check to see if the bank you are dealing with stock earnings is larger that the S&P earning if so, go purchase the shares. Thank you, Darius and Carmen.....
@@outstate9218 Plus the loan is not taxable (as long as you don't take too much at one time), so even if you had paid taxes on the principle (your premiums), you are not paying taxes on the growth (the interest). In theory, then, you have access to more money than you put in, which is not taxed, as would be the case if you paid from a savings account or an investment. So that 4% growth is worth more than money you would get from most other places. And the interest you are paying back goes back into your cash value, I believe. Not to mention the loan is much more flexible (no due dates), and gets taken from your death benefit if not repaid, not your income or other assets. You are coming out ahead on many levels.
Why would I pay 11k into a whole policy when I could have just paid off my credit cards at 6k? Wow, put my money into a whole policy. Borrow it, pay back 8% interest, policy death proceeds reduced by the loan amount. A dead person with zero credit card debt is worthless. Money/liquid assets is the bank is much more value to the client.
You misunderstood the 11k, go back and listen. You are not paying 11k into the policy, you are repaying the loan, and rebuilding your cash value. The cash value of the policy function like a credit card.
Exactly. Essentially instead of paying a bank interest you're paying interest to a life insurance company. You're "making" 4% but pay back 8%. You also have to have a significant amount of money to have money available in the cash value right away, especially since you're paying premiums
mikewilliams0728 but paying a whole life policy with cash values is just how Primericas infrastructure is. Matter of fact i can guarantee you they are affiliated with Primerica. So you pay about 5/6k to a policy and 5/6k is invested and receive a 4% return. Lets not forget the 1500-1800 the person whoever signs u up with the policy receives as an residual payment to them. I used to have primerica and everything they explained i am familiar with. I had to switch to another company and get term life at $75 a month to wake up. You can do this same process in a roth ira that averages 8-12% and a brokerage account. They can spell it how they want it but if you’re woke you should know this is a pyramid scheme to get them to receive residual income from you making outrageous payments for insurance you probably will not need, and if u miss a payment that money is gone. Facts!
e g Agree. I was wondering why it was taking so long for them to get to the point. I have enough funds in my IRA to borrow against it @2% (back to myself) to pay off debt at higher interest rates. There are tricks to play with your car and home interest rates.
@@mikewilliams0728 I agree this doesn't work for everybody, but if you already have a whole life policy with cash value, it will work. I'm from old school, my parents believed in whole life policies with values. I didn't value that concept at first, but now that I have one, and have borrowed money from it and repaid it. Even with the 6.5% interest I paid, some of that interest was used to rebuild my cash value. So, depending on your situation, it can be a win-win situation. But, if you don't already have one and depending on you age, they can be rather expensive.
I bet there are a lot of mad people who I’d this. Because they were paying 4% but with interest rates dropping I doubt they are still paying 4% but the participating Loan is still probably 5-6%
At ~ 8 min into the video, there seems to be a missing aspect of the overall flow of money which has an impact on the values and should be taken into consideration in my opinion. I.e. interest paid to the insurance company, typically in advance, right? If the loan rate is 5%, then the insurance company would take $317.70, prior to dispersing, right? (Cash value would go negative which I don't believe is something the insurance company would allow.) Then at the renewal of the policy year, another 5% of the unpaid loan balance would be pulled from the policy's cash value by the insurance company. And so on, every year until the policy loan is paid back. Please explain/clarify if my understanding is incorrect. I do truly appreciate your example but feel like the numbers should be re-worked for accuracy. Thanks for sharing this valuable information.
Check the beginning of the next video (part 3) for an explanation
Your cash value is used as collateral for the loan not using your money..
In most cases the idea is that you have the freedom to pay back the loan on your terms which is why it takes someone with extreme discipline to pay off the debt as soon as possible. Honestly I would only use this method to purchase real estate as the ROI allows me replace the funds within a 180 days or less in some cases.
I don't think this kind of life insurance exists in New Zealand
You don’t mention what the loan fees are that you are required to pay when you “borrow” the money from your whole life insurance policy. If you are required to pay a loan fee on money borrowed from the cash value of the policy is that money yours or the insurance companies? And what about the hidden monthly fees of the whole life insurance policy? Even when you’re guaranteed your premium will stay the same there are still monthly increases that are charged toward your cash value. This will require you to increase the money you dump into the policy. Most whole life policies are destined to fail in 20 years aren’t they? If premiums stay constant but fees increase the only place to get the difference is from the money you have saved in your cash value. At 4% interest your policy will self destruct in 20 years. At 11,000 annual premium my $900 a month payment becomes a bill rather than a savings until I completely fund the policy that year. Plus over $4000 goes to the Insurance company right off the top. I think this probably works better for someone who could completely fund a $200 or $300,000 policy. In your example it would take another 41 months before I could finance something again. On yeah, on top of paying back what I borrowed plus loan fees, I’m also making the $900 monthly to the policy.
Pathtomagic humm.
When you only have just your life insurance license you get this crap offer of a sales pitch.
A UL policy is design to fail in a specific period of time. Usually at about the 20 yr mark it starts to eat itself away as the annual policy fees increase each year you own the policy. If the monthly/annual payment is not increased by the policy owner the short falls will come from the cash value thus eating itself away/alive.
Love this video, you guys broke it down so beautifully and easy to understand. Can't wait to start my policy with you guys. :)
This analysis is missing a vital point which is you are borrowing from your whole life policy at a cost. What is the borrowing cost? Can you factor this into your calculations and let see if it makes sense
Redundant Q?s: How & when was the $11K Ins Policy acquired? Does it have ongoing premiums? Not mentioned, but I assume that when you pay off the credit card debt, you must NOT remount debt for the next 41 months while paying the insurance loan??
You could always chuck it on your Credit Card. Tht would pay it back straight away.
@Independent Thinker You catch on quick
I'm confused because if you're paying the money to life insurance policy with your would-be mortgage money, how are you affording a roof over your head?
Wait, I don't get this concept. Wouldn't this create a never ending cycle?! After taking out the total sum of the loan to pay the entire sum of the credit card, you now have to pay back the loan to the life insurance and it could take you months if not years to pay it back. Plus, you'll end up having a need to charge up that credit card again next month and you still owe to the loan for last month. It's a never ending cycle and you're digging yourself deeper in a hole the way I see it. Or maybe I just don't understand the whole concept. Please clarify. Thank you.
Good question! The point is to NOT use the credit card. You’re paying it off to be done with consumer debt. The point of continuing the monthly payments into the policy is to get back the money you would have paid to the credit card in the first place. If you’re used to paying $XXX on debt each month, take those same funds and pay yourself/save the money in the policy so you don’t continue to spend irresponsibly.
That's how I see it, using debt to pay debt. Why not just cut expenses, snowball pay the debt and save.
ForEverMeTori the concept is this,
For an example, I can borrow money from my 401k @. 2.5% interest.
Or I can borrow money from the bank at 2.5%
The difference is , I would be paying myself back the interest in paying the money back into my 401k vs paying the bank back the interest
AT age 62 How would work for Me???
My question is that: Life insurance locks the bulk of your money. The remaining unlocked part is called the CASH VALUE of your policy. However, your loans taken out are against the CASH VALUE of your policy, not against how much you put in. My concern is that once you put in 10k, only 1k remains available as your CASH VALUE. In other words, you immediately lose 90% access to your money. This is the biggest reason why I'm not excited about the so-called IUL life insurances or whatever name they use for it. That is, the fundamental concept of the so-called INFINITE BANKING is not tenable.
How easy is it to pull the money out from the life insurance policy?
Good information but I think twice about keep watching your videos because it takes a good chunk of my time just to watch recaps, what’s the point of having a 3 video topic, if you gonna use half of the second and third videos to recap on previous videos? Just saying is annoying to have to go thru the same information soo many times. But like I said thanks for the good info on these videos.
should be taught in high school.
Instead of paying yourself $11,000 a year you should have paid your credit card and auto loan 😀
mikewilliams0728 but paying a whole life policy with cash values is just how Primericas infrastructure is. Matter of fact i can guarantee you they are affiliated with Primerica. So you pay about 5/6k to a policy and 5/6k is invested and receive a 4% return. Lets not forget the 1500-1800 the person whoever signs u up with the policy receives as an residual payment to them. I used to have primerica and everything they explained i am familiar with. I had to switch to another company and get term life at $75 a month to wake up. You can do this same process in a roth ira that averages 8-12% and a brokerage account. They can spell it how they want it but if you’re woke you should know this is a pyramid scheme to get them to receive residual income from you making outrageous payments for insurance you probably will not need, and if u miss a payment that money is gone. Facts!
Please let me know who / which Life Insurance company you’re going thru?
orrrrrr you could just get out of debt
Saving your money should never be attached to a whole life policy. Buy a term life insurance policy which is cheaper and invest the difference in a mutual fund which pays from 4% to 12%!
Lol
This system is way over hyped.
It’s nothing but a high yielding saving account that’s guaranteed to underperform the broader indexes.
Why not just BTFD on the S&P?
If you’re worried about faith in banking system... buy gold.
Why do y'all keep repeating the same thing over and over and over? You said the exact same thing over and over in the first video.
You start to accumulate a cash value after 3 + years. The premium might be right, but the value is way off. Also, the insurance company do not allow you to withdrawn all the cash value of your policy. Most people need some form of life insurance BUT you guys are peddling is bad. What happens if someone loses a job and cannot pay the premium, plus the extra for the loan? You can negotiate with the credit card company, not with an insurance company. This type of information hurt a whole lot of families, the Agent telling them that they could borrow the cash value. I never thought this EXTREMELY BAD ADVICE is still around.
This is horrible. Who would buy a life insurance policy to pay off their bills. Buy term and INVEST the difference? I can't believe people would listen to this nonsense. It takes a loooonnnngggggggg time for someone earn on a life insurance policy and then you have to pay it back. Just invest the money and get a better rate of return, or how about this? Follow Dave Ramsey and pay your self first, pay your smallest bill off first, then take that and add it to the next bill. I am so upset you are teaching people this foolishness.
SMH
Don’t this to our community come on? $11,000 of annual premium are you kidding me i move my saving to a program where i know have to borrow my hard earn money, come on don’t do this to our communities!! We’ve suffered enough!! You guys should be ashamed of what you just presented!! That’s a shame!!!