Don’t Be Afraid To Capitalize
The Infinite Banking Concept ™ Rules of IBC
In his bestselling book, Becoming Your Own Banker, Nelson Nash shares the secrets of Infinite Banking and the basic rules for IBC. But, you had to see him live or hear a seminar for the details.
Rule #2 Don’t Be Afraid To Capitalize
- Think long range.
- Don’t be afraid to capitalize.
- Don’t steal the peas.
- Don’t do business with banks.
Why are people afraid to capitalize? Perhaps it’s because we’ve been told over and over by the media and financial institutions to invest in their financial products.
When considering finance, capitalization is key. We should want to capitalize and grow our own assets. Practicing Infinite Banking allow us to create our own private reserve fund, that can be treated as a long-term capital asset.
The Capitalization Phase
By paying premiums into a properly structured life insurance contract, you can start the capitalization phase. As premiums are paid into a IBC structured policy, cash-value accumulates.
As with any business, there is a start up cost and time period, this is the capitalization phase. This time period can vary depending on each individuals goals and desires.
The capitalization phase for an IBC policy can be from 5 years through the life of the insured, depending on how the policy is structured. However, if used properly, the cash-value of a policy can be utilized much sooner.
When relating capitalization to Infinite Banking we should be thinking long-range. And, we should consider having multiple policies or contracts, or as Nelson called them branch banks.
This means we are continuing to grow our capital over time and setting in-force a perpetual system for creating generational wealth.
What makes Infinite Banking or IBC unique from other accumulation methods, is that the capital can be accessed without penalty via loans. These loans are from the life insurance company, using the death benefit of the policy as collateral.
Collateralization is what allows the cash-value of the policy to continue to compound uninterrupted, even if there is a loan against the policy.
Don’t Be Afraid To Capitalize Video
Watch this video to learn more about capitalization with IBC.
Life Insurance Capitalization
Dividend paying, whole life insurance from a mutual life insurance carrier, is the ideal place to store and grow capital. Everything is already in place, and all you have to do is capitalize your system.
When starting a business, or even a traditional bank, one has to have capital. This capital should be stored in a safe place.
Life insurance companies have been storing capital for centuries, they are among the safest places on earth. As a matter of fact, traditional banks store much of their Tier 1 Capital with life insurance companies, to help reduce their risk.
Capital (money) stored inside of a life insurance contract is considered safe, liquid and easily accessible. And, the money inside of the contract can continue to earn interest and compound even while funds have been borrowed.
This money can be used for any reason, there is no bank qualifying or credit reporting. The amount that can be loaned is based on the current amount of the cash-value.
So, don’t be afraid to capitalize!
Practicing Infinite Banking requires capitalization into a permanent life insurance policy. If you want to know how you can use Infinite Banking in your family life or business, schedule a time for us to talk.
Just follow this link to learn more and schedule an introductory meeting: https://legacyinsuranceagency.com/ibc
Until next time,
I’m Barry Page, Your LIFE Evangelist
Barry Page is a Registered Financial Consultant, Managing General Agent and Founder of Legacy Insurance Agency, PLLC. He helps families take control of their finances and create financial independence using The Infinite Banking Concept™.
Page has been cited on ABC, CBS, NBC and FOX for his work helping families and businesses with wealth building strategies to increase cash-flow, secure capital financing and provide tax-free retirement income.
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