Infinite Banking concept

[scagnt83]

I just sell it for it merits without some "system".

Packaging it up makes it sound fancy I guess. But its just an overly complicated way to use the Cash Value in a life policy.

Instead of focusing on all that crap. Focus on educating the client on the merits of the product, how it works, & how it could fit into their current financial picture.

IBC is built around the product.... but the pitch makes the product an afterthought.

If you take the time to become an expert in the product... it becomes easy to educate clients on the merits/benefits. Then you dont even have to "sell" people on the product, they just want it and they buy it. So instead of focusing on "systems" focus on educating yourself on the product details along with how it can be tailored to fit peoples financial needs.

 

[scagnt83]

Also, this concept takes a heck of a lot of money to actually utilize on a regular basis. Im talking $500+ per month minimum. Ideally $1k+, unless you want to wait a long time for the policy to build enough value to actually finance anything.

Any levels less than that and its just false promises the agent is pitching.

 

[eersfan]

How much service work is involved with these? It seems like a service nightmare with loans and that sort of thing...

Not much more than what you should be doing with annual reviews.

 

[eersfan]

Also, this concept takes a heck of a lot of money to actually utilize on a regular basis. Im talking $500+ per month minimum. Ideally $1k+, unless you want to wait a long time for the policy to build enough value to actually finance anything.

Any levels less than that and its just false promises the agent is pitching.

This concept, as you know, isn't for everyone. The majority of my clients utilizing this strategy are in the upper income brackets and can afford it.

 

[HoosierLife]

Also, this concept takes a heck of a lot of money to actually utilize on a regular basis. Im talking $500+ per month minimum. Ideally $1k+, unless you want to wait a long time for the policy to build enough value to actually finance anything.

Any levels less than that and its just false promises the agent is pitching.

My buddy is planning on putting $3100 a month in there.

He wants to be able to loan himself money for rehabs to flip.

 

[scagnt83]

Not much more than what you should be doing with annual reviews.

That is going to vary greatly depending on how actively they are utilizing the concept.

If they are taking a Loan every few years, then its "not much more".

If they are taking Loans every year then it can get a lot more in depth and will need reviews multiple times per year. Thats if you want to actually do right by the clients and provide quality servicing for what is going on in the policy. I know how much extra time it takes with people NOT doing IBC who are actively taking Loans. It should take even more time if they were doing IBC as well.

jmho. Its fancy packaging that makes agents think its easier to sell WL.

 

[scagnt83]

This concept, as you know, isn't for everyone. The majority of my clients utilizing this strategy are in the upper income brackets and can afford it.

The majority of my WL/IUL clients are as well. I would never pitch it to them. No need to. They understand the merits and how to use the product without it.

 

[scagnt83]

My buddy is planning on putting $3100 a month in there.

He wants to be able to loan himself money for rehabs to flip.

Then he is certainly a viable client for WL or IUL focused on CV.

IBC makes the product needlessly complex.

I have multiple clients who use the funds in their policy for short term real estate investments. You dont need fancy wrapping paper on the product to use it for that.

There are also SO MUCH BETTER PRODUCTS than the one he is looking at.

Also, IUL is often a more appropriate product for people in situations like his who need lots of liquidity in the policy.

 

[bobson]

Thanks for the great discussion.

 

[jboussea]

if your buddy is into flipping houses.. he understands the value of having cash on hand ... Cash Value life can be a tool for having cash on hand with a better return.. the Catch is that you need it to let it build up.. so at the end of the day .. your buddy would still need money in a bank account because it takes time for you to start earning returns on your policy. ... that might make him think twice about signing up for it.

There are IUL's and WL that are designed to be highly liquid even within the 1st couple of years but that comes at a cost.. for someone who needs quick access to cash though ,, that might be an option... But even then, it's a slow moving process.