Frequently Asked Questions
FAQ – Questions and Answers

Frequently Asked Questions (FAQ) we often get about our services, life insurance and Infinite Banking.

Frequently Asked Questions

Frequently Asked Questions (FAQ)

FAQ – Questions and Answers

Who is Legacy?
Legacy Insurance Agency was formed to provide value and results to those seeking financial freedom and security. We serve families and businesses by providing proven financial strategies and solutions.

How does retirement work?
Retirement is typically a time in life when a person determines they no longer have to work and they have sufficient resources available to fund their lifestyle. We think differently about the subject and offer strategies to maximize the quality of life during this period.  Retirement planning doesn’t have to be complicated, we’ve made it simple. It’s not how you will spend your time… But how you will spend your money.

What is the differences between Term and Whole Life?
Term Life provides temporary protection at an affordable rate over a specified period of time. Whole Life offers permanent protection and coordinates with your other assets by providing protection, growth and significant tax benefits.

How does life insurance benefit you during retirement?
Life insurance offers many benefits and tax advantages. These tax benefits are not offered with financial products like CD’s or stocks, and allow more flexibility than traditional retirement accounts.

Questions about the Infinite Banking Concept

What is the Infinite Banking Concept?
The Infinite Banking Concept (IBC) works through a custom designed, dividend paying, participating whole life insurance policy from a mutual life insurance company.

These policies function like a bank via you making deposits and loans, by giving you access to capital allowing use, and control of your money.

IBC is a way to recover the interest that one is paying to banks and finance companies for the major items that we need to finance during a lifetime.

“The Infinite Banking Concept is not a bank; it is a thought process that represents a major paradigm shift.” ~Nelson Nash

Which are the best Insurance companies to use for Infinite Banking?IBC works through a custom designed, dividend paying, participating whole life insurance policy from a mutual life insurance company. There are only a handful of mutual companies that offer properly structured policies for IBC. Every case is different and the policy should be designed with your goals in mind. Consult an authorized IBC Practitioner to see which works best for your situation.

What are dividends and (PUA) Paid-Up-Additions?
Dividends are excesses or surpluses of capital. And, because they are considered a return of premium, it is not considered a taxable event according to IRS rules. Policies have guaranteed growth even without dividends, and when dividends are paid the policyowner has the option of having them “reinvested” back into the policy to purchase PUA’s or paid-up-additional-insurance. 

How can I accelerate cash-value growth?
Properly designed IBC policies are designed to accentuate cash-value growth, especially in the early policy years. Traditionally, life insurance policies do not pay a dividend for the first couple of years due to the additional expenses incurred when a policy is created. Once a policy has been in force for a few years it starts to grow more rapidly due to the dividends being paid.

What is a MEC?
MEC stands for Modified Endowment Contract. By law, the Internal Revenue Service limits the amount of cash that can be paid into in a life insurance policy. A MEC does require extra attention by the agent and owner of the policy because of the tax guidelines.

Why should I borrow my own money?
“The very first principle that must be understood is that you FINANCE everything that you buy – you either pay interest to someone else or you give up interest you could have earned otherwise.” ~R. Nelson Nash

The problem is that all these items are financed by other banking institutions. This means that the interest portion of every dollar spent is perpetual. The volume of interest is the real issue, not the annual percent rates.

When you finance using a properly structured IBC policy, you can recover the costs normally associated with financing and, have your money continue to grow uninterrupted.

Do I have to repay policy loans and what happens if I don’t?
A loan uses the death benefit as collateral, so it does not require repayment. You are in control of the payment schedule should you decide to repay the loan. IBC recommends repayment, just any financial institution, especially during the growth years. There are stipulations based on your cost-basis and how you take the loans, but you remain in control.

Can I use IBC during retirement?
IBC comes alive during retirement. Traditional retirement plans depend on guesswork. Monte Carlo simulations prove that traditional financial planning can fail most of the time. IBC plans provide safety and more predictable tax-free income with less stipulations and worries.

Thank you for visiting our Frequently Asked Questions (FAQ) page. Check back often as this page will be updated as questions and answers are added.

To learn more about our services, request a no cost, no obligation consultation.