Infinite banking concept / Indexed universal life insurance

[datsun672]

Hi,

Just joined the forum and halfway through the fastlane book. Very excited about what i've read so far. I know it's going to get better as I read more into it.

I recently just found out about this Infinite banking concept / Indexed universal life insurance. Seems to good to be true. My understanding is pick your death benefits amount, pay the monthly, when your payments mature take out a loan against it and either back it back or it get's subtracted from the death benefit amount.


Does anyone have a policy like this? Pros, cons?

Thx!

 

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[Greg Behnke]

I have one. It's fantastic for growing a savings pot and getting upside of market without the downside. Another tool the rich use to hide money.

 

[datsun672]

I have one. It's fantastic for growing a savings pot and getting upside of market without the downside. Another tool the rich use to hide money.

Thank you.

What are the cons of using it? From the minimum research I did, you cannot take money out until it grows which can be years. If you take out a loan ou technically have to repay the loan back if the policy doesn't allow to withdraw from the death benefit.

How do you create the policy with minimum fees? Basically I am trying to be my own bank so I'm very interested in this sytem.

 

[Greg Behnke]

Thank you.

What are the cons of using it? From the minimum research I did, you cannot take money out until it grows which can be years. If you take out a loan ou technically have to repay the loan back if the policy doesn't allow to withdraw from the death benefit.

How do you create the policy with minimum fees? Basically I am trying to be my own bank so I'm very interested in this sytem.

I’m no expert on it nor have any financial interest on it nor do I give financial advice. Having said that, downside is that it’s takes 5-7 years to essentially be back to even. Upside is after that it’s a double compounding. Downside could be you can’t make the payments anymore and relinquish the policy and lose all the cash value. I consider it a good place to store cash, safe from creditors, an emergency fund, and opportunity fund through forced savings. These products are very heavy commissioned biased in first two years which why It takes time to recover plus you are forgoing opportunity cost of using initial lost money to commission up front.

 

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[datsun672]

I’m no expert on it nor have any financial interest on it nor do I give financial advice. Having said that, downside is that it’s takes 5-7 years to essentially be back to even. Upside is after that it’s a double compounding. Downside could be you can’t make the payments anymore and relinquish the policy and lose all the cash value. I consider it a good place to store cash, safe from creditors, an emergency fund, and opportunity fund through forced savings. These products are very heavy commissioned biased in first two years which why It takes time to recover plus you are forgoing opportunity cost of using initial lost money to commission up front.

Thank you, i'm going to look more into it.