Short Report: creating a personal mini-bank with Whole Life Insurance: part one.

shortsegments (77)adminin Banking and Finance • 4 years ago (edited)

Many years ago a businessman realized that traditional banking practices created tremendous debts for consumers, and the interest on this debt meant that average people paid the majority of their monthly income to banks or other creditors as monthly debt or bills. This business man discovered large insurance companies invented a product over 100 years ago, called Whole Life Insurance, which could be used as a personal bank by consumers allowing them to mske some and eventually all their debt payments to themselves via the loan capability of whole life insurance policies. This businessman was R. Nelson Nash and his original “infinite banking concept” allows you to create your own personal bank to borrow money from and pay back money to, in such a way that you benefit, instead of the bank.

I realize this is a totally new idea and you may be skeptical. I understand because so was I when I first heard about it. However, if you study this subject you will realize that the infinite banking system, as originally created by R. Nelson Nash 50 years ago, uses a financial vehicle called Whole Life Insurance to help you create a small personal account, funded by your life insurance premiums, which can be used as collateral to borrow money at fixed, pre-negotiated, simple interest. This small personal account starts small, but can grow quite large overtime. It can be used for both small purchases at first and large purchases later. The beauty of this is in those details; pre-negotiated fixed simple interest loans, secured by the savings account. Plus you can never be turned down and same day approvals are common because your pledging cash as collateral for the loan. Additionally, Mr. Nash created an educational foundation that teaches consumers about this financial tool. Plus the foundation teaches insurance agents how to sell Whole Life Insurance products, which are specifically tailored to provide maximal cash value accumulation to create this cash fund, which is controlled by the policy owner. This system replaces the large commissions of traditional life insurance products with smaller commissions, but more policies, as happy customers tell their friends and family about this product.

It it is ironic that the 50-year-old Infinite Banking Concept, created by R. Nelson Nash, which predates the development of both the Internet and the Blockchain, provides clear, simple, step-by-step instructions to free you from dependence on the modern banking system. It is equally ironic, that the main tool of freedom; whole life insurance, has existed for over 150 years in this country.

Important words, definitions and an important concept.

A “Whole Life” life insurance policy contains as an integral or core component, a savings account called the “Cash Value” of the policy, upon which the insurance company pays the Policy owner a guaranteed rate of compound interest. The guaranteed interest paid is “compound interest” and it accumulates within the savings account portion of the “Whole Life” insurance policy and it is called the “Cash Value” portion of the policy. The policy owner is allowed to apply and receive “loans” against the cash value, for which he pays a “pre-agreed upon” and “fixed rate” of “simple interest” for the life of the policy.

Important Concept:The value of this “cash value” portion is determined by the premiums paid to the insurance company. R. Nelson Nash, the founder of the Infinite Banking Concept, learned that those premiums can be subdivided into portions which pay the death benefit and portions contributing to the cash value. And the portion of the monthly premium which goes to each can be negotiated at the start, to effectively grow the cash value faster, so as to create a rapidly growing pool of money, which could be used to finance purchases, essentially creating a small personal bank to use for the life of the policy, which was designed to last his entire life.

We will discus this financial tool more in part two of this series.

Written by Shortsegments. ✍