Favorite BYOB, Infinite Banking Concept System Video?

[jcorr]

I'm looking for a short video that explains the BYOB or IBC concept that I can send to prospects. There a TON of them out there, some better than others. Ideally it would be 5-10 minutes long and fairly generic. Any suggestions?

(Also any idea why my avatar now says "expert"?)

 

[DHK]

Forum titles are based on post count.

 

[DHK]

 

[jcorr]

Thanks, DHK, that is exactly what I was looking for.

 

[Lloyds of Lubbock]

If you take a loan from your insurance company the interest charged goes to the insurance company....IT DOES NOT GO BACK IN YOUR POLICY. Ask any actuary
If you repay your loan as if the interest rate charged was higher than you actually pay that difference will go into your policy.
You will probably need an active PUA rider to accomplish this.
If you own a business you can taker your policy to an cash value lender and get a loan in the name of the business.
You can get a lower rater from the lender and it may be tax deductible.
You also need to be aware of recapture ceilings. See item 5
http://www.ubsnet.com/assets/Uploads/Newspdf/Income-Taxation-of-Life-Insurance.pdf

I would send the video to my compliance dept. before i sent it out.

 

[DHK]

True... and wrong and the same time.

Huh?

Here's the deal: The interest comes out FIRST when you take out a loan. Who gets that interest payment? The insurance company - because they are lending out from THEIR reserves.

Now MOST "infinite banking" pundits believe that you "get that back" via annual dividends. I prefer not to play that game.

I prefer to talk about responsible borrowing using life insurance.

If you have $100,000 in cash values earning 4% = $4,000 in policy earnings.

If you take out a loan of $50,000 and pay 4% interest = $2,000 in loan interest.

If you do NOT pay the annual interest on the policy loan:
$4,000 earnings - $2,000 loan interest = $2,000 in net policy earnings.

If you DO pay the annual interest (back to your POLICY) on the policy loan:
$4,000 earnings - $2,000 loan interest + $2,000 loan payment = $4,000 in policy earnings restored.

Your compounding power is RESTORED back to the policy and yes, you are paying the interest back to the policy restoring its illustrated values.

 

[jcorr]

If you take a loan from your insurance company the interest charged goes to the insurance company....IT DOES NOT GO BACK IN YOUR POLICY. Ask any actuary

Of course it doesn't "go back in my policy". It never left. I'm just using my cash value as collateral. Any payments I make goes to reduce the loan that I made. Since my cash value never left it's still earning dividends. My policy is earning 6.1%, my loan is 5.5%. Seems like a pretty good deal to me.

 

[DHK]

Note: be especially careful about talking about "infinite banking" if you're a career agent. More than one insurance agent has been terminated for using such terminology.

Just talk about how borrowing can work from the policy. It's really the safest and most compliant way to go.

Bank on Yourself Infinite Banking

So to reiterate, Bank on Yourself®, infinite banking, et. al. are commendable for their efforts to spread the word about what we can use cash value life insurance to accomplish. But we have to temper their claims to establish appropriate expectations. And you can’t get rich by spending money.

 

[Lloyds of Lubbock]

Go ask an actuary...interest charged goes to the company.
Use any math you want but that's the fact. Interest does not get paid back into your policy.
You are only restoring the values prior to the loan.
If you take out a loan and pay the interest and decide to pay the loan off all you're paying is principle to restore your policy values...you already paid the loan interest to the company.

 

[Lloyds of Lubbock]

6.1 is that a rate of return or is it a dividend crediting rate? BIG DIFFERENCE.
Or is it an IUL that is crediting a rate of return in excess of it's loan rate.
"Just talk about how borrowing can work from the policy. It's really the safest and most compliant way to go."
This is excellent advice.