Your Family Bank
- Thread starter FBN
- Start date
- 11,275
That's outrageous! (And yes, I did a search to try to see what it would do.)
Software – Your Family Bank
And I just wanted to bump up some other thread rather than the thread a certain "ignored poster" had started.
Software – Your Family Bank
And I just wanted to bump up some other thread rather than the thread a certain "ignored poster" had started.
Friend of mine has been to their training and is using this system now. I think its $3500 for the software or a little more if you make payments. About the same cost as any of the big software systems. (COW, LEAP, etc)
It is apparently a very good system that utilizes perm ins (WL) as a tool to help them eliminate debt, and build their "bank" (CV) over time. I have not seen it in person.
It is apparently a very good system that utilizes perm ins (WL) as a tool to help them eliminate debt, and build their "bank" (CV) over time. I have not seen it in person.
Something I don't understand is if the policy is earning 4% lets say and interest rates jump up to 7% in two years. When you take the loan out to pay something off your losing money because your loan rate is higher 3% higher in that situation. Am I missing something?
- 11,275
Compared to what?
We can actually use Guardian as an example because (last I checked) their policy loan rates are a fixed 8%. You can assume that the policy is only earning 4%. Definitely a negative spread.
But you said you're taking out the loan to pay something off. If you're already losing money on a loan and you consolidate it with a life insurance loan... you wouldn't do that to make yourself WORSE off, right?
But there is another reason why you may want to go ahead and pay the higher interest rate: non-structured, interest only payments. You set your own terms (which is good and bad). As long as you pay the annual interest each year, you don't HAVE to pay the principal back - unless you want to be able to borrow against it again. (Heck, you don't even HAVE to pay the interest back to the policy... but it's a good idea to help keep the policy afloat.)
We can actually use Guardian as an example because (last I checked) their policy loan rates are a fixed 8%. You can assume that the policy is only earning 4%. Definitely a negative spread.
But you said you're taking out the loan to pay something off. If you're already losing money on a loan and you consolidate it with a life insurance loan... you wouldn't do that to make yourself WORSE off, right?
But there is another reason why you may want to go ahead and pay the higher interest rate: non-structured, interest only payments. You set your own terms (which is good and bad). As long as you pay the annual interest each year, you don't HAVE to pay the principal back - unless you want to be able to borrow against it again. (Heck, you don't even HAVE to pay the interest back to the policy... but it's a good idea to help keep the policy afloat.)
- 5,778
Just did a review for a client who needs to liquidate cash for unmentioned reasons... had a nice SPWL but to borrow would cost 8% on the loan... opted to cash surrender...
A line I often use with my clients is, "Insurance companies are not in the business of losing money, they are in the business of making money... their not your friend (I want the client to be my friend) they are in the business of supplying a product that fits a need and helps you protects you and your family."
If we are not careful... we represent companies as just wanting to help people regardless if it hurts them or not... not so... they are in business to make $.
babybella2
New Member
- 18
I love the infinite banking system. However , not YFB BE careful. They make you approach the deal by NEVER saying this is life insurance until the 2nd appt. Pay the 250 for the 2 weekends then they hit you on the 2nd day with the monthly fee of around 150 a month. You have to contract with MTL before you even go to the bootcamp. They just told me I owe them some crazy 1,500 before they will release my contracts and I never wrote one deal threw them.
It's unfortunate...that agents who have not actually taken the required 2 day Training on this concept, get to not only have an option, but also strongly suggest whether another agent should broaden their horizon and investigate for themselves. I am an agent and a client. Although this product is not for everyone (as most products)...it is absolutely phenomenal for those who are a match. Frankly...I'd like to thank you in advance, for sticking with your traditional WL & IUL's, and pass on Infinite Banking. It leaves more of the market share for me:-).
Taking a min to write my personal experience with YFB:
I felt they were not upfront with me. I purchased a flight, hotel and a rental car all on my own expense to attend their training, which I also cost me an additional $250 I believe. They proceed to sell you on their system, which can be good for some people in all fairness. In the end of the second day is when they make you the pitch to buy their program which costs $2000+. They make you sign a promissory note with a down payment and 12 payments of $149. I felt that I was totally misled. None of this information was provided to me upfront and I only found out about this additional cost after 2 days of training and them making it seem that their system was going to solve everyone's debt problems. I had already spent 100's of dollars to get there and did not want to "waste" that money and trip. The system seemed decent and like most people, I signed up.
The system did not really work out well for me for the lack of leads. First thing they advise is to write a policy on yourself, which I did. After hitting up some of my closest friends and even my ex wife (mind you I had 6 yrs of experience in insurance sales prior to YFB) my well dried. I reached out to a massive amount of people on Linkedin, went to local MeetUps in my area looking to network, passed out door hangers on neighborhoods... and after a few months and the lack of success I just resigned.
The problem that ticked me off is they will not let you cancel their membership before you pay the full amount of the promissory note. I tried calling them multiple times. I cancelled my credit card and got a new one. YFB still got a hold of the new credit card number and continued charging me. I disputed the charge and after a month the charges were reinstated when they provided the credit card company a copy of the promissory note. They even go to the extend of taking a picture of everyone down there at training. You can't get rid if these people!
I really feel that I was misled, they lacked transparency from the beginning. I was trying to figure out what is the point of holding people hostage to your agency? If they gave it a try and did not work out, did not make money, why still keep taking money from them?
After some quick math I think I figured it out. There were probably 50-80 people at training: each one paid $250 just to attend + about 75% of the people sign up ($2088) = $100,000+ per 2 day training... not a bad business model. That is why it makes sense for them to NOT tell the whole story upfront. They make too much money from it.
I felt they were not upfront with me. I purchased a flight, hotel and a rental car all on my own expense to attend their training, which I also cost me an additional $250 I believe. They proceed to sell you on their system, which can be good for some people in all fairness. In the end of the second day is when they make you the pitch to buy their program which costs $2000+. They make you sign a promissory note with a down payment and 12 payments of $149. I felt that I was totally misled. None of this information was provided to me upfront and I only found out about this additional cost after 2 days of training and them making it seem that their system was going to solve everyone's debt problems. I had already spent 100's of dollars to get there and did not want to "waste" that money and trip. The system seemed decent and like most people, I signed up.
The system did not really work out well for me for the lack of leads. First thing they advise is to write a policy on yourself, which I did. After hitting up some of my closest friends and even my ex wife (mind you I had 6 yrs of experience in insurance sales prior to YFB) my well dried. I reached out to a massive amount of people on Linkedin, went to local MeetUps in my area looking to network, passed out door hangers on neighborhoods... and after a few months and the lack of success I just resigned.
The problem that ticked me off is they will not let you cancel their membership before you pay the full amount of the promissory note. I tried calling them multiple times. I cancelled my credit card and got a new one. YFB still got a hold of the new credit card number and continued charging me. I disputed the charge and after a month the charges were reinstated when they provided the credit card company a copy of the promissory note. They even go to the extend of taking a picture of everyone down there at training. You can't get rid if these people!
I really feel that I was misled, they lacked transparency from the beginning. I was trying to figure out what is the point of holding people hostage to your agency? If they gave it a try and did not work out, did not make money, why still keep taking money from them?
After some quick math I think I figured it out. There were probably 50-80 people at training: each one paid $250 just to attend + about 75% of the people sign up ($2088) = $100,000+ per 2 day training... not a bad business model. That is why it makes sense for them to NOT tell the whole story upfront. They make too much money from it.
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So you went to the training, learned everything you needed to know AND then decided to buy the software/system. But since you didn't have much success with the system (in what appears a very short amount of time), you feel like you essentially got scammed and tried to skip out on the payment?
A promissory note is just that. They didn't scam you into it, you thought it was valuable enough to your business, so you signed on. Just because you didn't have immediate success with it, doesn't mean it is bad. I know several folks that use it and like it, and have made their money back 10-20-30 fold, if not more. Sure, not everyone is going to be a good candidate for that program, but some are. I know many agents have very good success using all sorts of software programs to aid their business, I still use the one I bought. One friend of mine uses that YFB system probably 3-4 times a year when the right candidate comes along, and has made at least 10x the cost of it in the last 2yrs. Its a tool in the bag in their business model is all, not the primary focus.
It sounds like the problem is you likely thought it was the holy grail and just by signing up you would automatically boost your sales/income through the roof with little effort, vs taking it for what it is. I think that happens alot in this business. The real driver of success is the pipeline, not the tools you use with those folks. I guess I see how you think you got duped since they wouldn't let you out of finishing to pay for it, however you purchased and essentially financed the system... so you owed the debt. I looked at YFB a while back, called and talked to someone there and asked all those questions up front and decided it wasn't something I was interested in. I also purchased the circle of wealth software many years ago, also on a promissory note. I didn't make much money with it, but paid what I owed until I was done, and continue to renew and use it today.
My bet is if you embraced the tool for what it is, and use it with the folks that are qualified candidates for it - you'd probably do well with it as most folks do with any system they use. Good luck
A promissory note is just that. They didn't scam you into it, you thought it was valuable enough to your business, so you signed on. Just because you didn't have immediate success with it, doesn't mean it is bad. I know several folks that use it and like it, and have made their money back 10-20-30 fold, if not more. Sure, not everyone is going to be a good candidate for that program, but some are. I know many agents have very good success using all sorts of software programs to aid their business, I still use the one I bought. One friend of mine uses that YFB system probably 3-4 times a year when the right candidate comes along, and has made at least 10x the cost of it in the last 2yrs. Its a tool in the bag in their business model is all, not the primary focus.
It sounds like the problem is you likely thought it was the holy grail and just by signing up you would automatically boost your sales/income through the roof with little effort, vs taking it for what it is. I think that happens alot in this business. The real driver of success is the pipeline, not the tools you use with those folks. I guess I see how you think you got duped since they wouldn't let you out of finishing to pay for it, however you purchased and essentially financed the system... so you owed the debt. I looked at YFB a while back, called and talked to someone there and asked all those questions up front and decided it wasn't something I was interested in. I also purchased the circle of wealth software many years ago, also on a promissory note. I didn't make much money with it, but paid what I owed until I was done, and continue to renew and use it today.
My bet is if you embraced the tool for what it is, and use it with the folks that are qualified candidates for it - you'd probably do well with it as most folks do with any system they use. Good luck
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