IBC – How does it work?

Buy the right policy from the right insurance company

There are a lot of different ways to structure a whole life policy, and each company has some slightly different features or restrictions that you want to be aware of before you go and assign a significant sum of money towards this strategy.

Design it properly

Once you’ve picked the right insurance company, you want to make sure that your policy is properly designed. A good policy for you is not the one that pays your advisor the most money, so quite often the emphasis is not on you but on what the advisor gets compensated… hence you end up with the wrong designed policy.

Pick the right budget

Don’t get in over your head, and also, ensure that your budget is including the paid-up addition, which will give you more flexibility down the road. Your advisor might not like that though, since you’re cutting his or her commission down to 10% for that portion of the budget… but it is the best way to design it for you.

Make sure that you can afford the budget so you don’t miss payments

If you put dollars in, you get dollars out… if you put pennies in, you’ll get pennies out!

The power of the Infinite Banking Concept is to keep your money working

If you can get your money to work at two places at once, you’re going to be able to build wealth much faster!

Borrowing during your retirement years

Depending on the ACB for your policy, you can either borrow directly from the insurance company, or you can use the policy as collateral and get a line of credit.

Don’t pay taxes when you transfer your wealth down the generations

This is probably my favorite part about this concept!

It will never be the same!

If you do it right, your family tree will be changed for ever!