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Thread: whole life insurance policy - infinite banking

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    Default whole life insurance policy - infinite banking

    Hi all,

    just wondering if anyone has is using a whole life insurance policy, infinite banking, or any other?

    was introduced to this couple of months ago, and is very intriguing.

    i can provide some information for those who are unaware of these terms
    Last edited by ctochico; 05-10-2022 at 04:07 PM.

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    In terms of insurance, I dislike them. In terms of investment, I find them overly complicated. The companies that sell them seem really profitable though, so the sales people are pretty motivated.
    Quote Originally Posted by rage2 View Post
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    I almost shat myself after eating way too much at lunch with @killramos so ya, we can start the diaper thread now.

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    Buy term and for amount of risk you want to cover. Re-evaluate the risk every few years and adjust coverage accordingly.

    The minute sales guy mention "investment", run the other way.

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    Quote Originally Posted by ctochico View Post
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    i can provide some information for those who are unaware of these terms
    Fishing new recruits for your WFG pyramid?
    Quote Originally Posted by killramos View Post
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    The AHS system is quite good.

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    Are you as good as Confederated Products???


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    Some guys just don’t want to be rich I guess
    Originally posted by Thales of Miletus

    If you think I have been trying to present myself as intellectually superior, then you truly are a dimwit.
    Originally posted by Toma
    fact.
    Quote Originally Posted by Yolobimmer View Post
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    guessing who I might be, psychologizing me with your non existent degree.

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    Quote Originally Posted by Tik-Tok View Post
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    Fishing new recruits for your WFG pyramid?
    haha didn't know who WFG was, just googled them. interesting

    i was more intrigued with the infinite banking, and the idea of accessing the cash value while your alive, along with the death benefit value as well. im currently on term, didn't know there was a policy such as whole life. was looking more for a policy for my kids so that they can be set up when they are older.

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    Is infinite banking just a heloc against your term life plan or something?
    Originally posted by Thales of Miletus

    If you think I have been trying to present myself as intellectually superior, then you truly are a dimwit.
    Originally posted by Toma
    fact.
    Quote Originally Posted by Yolobimmer View Post
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    guessing who I might be, psychologizing me with your non existent degree.

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    Quote Originally Posted by killramos View Post
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    Is infinite banking just a heloc against your term life plan or something?
    yes, essentially. term insurance doesn't offer this. whole life policy does. basically you build up the cash value policy, and when the time comes, you take a loan against the cash value from the insurance company and do whatever you want to with it, meanwhile you don't disrupt the cash value aspect, and it just continues to compound in interest. that compound interest essentially evens out with the interest payments of the loan. and everything is tax free.

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    I guess where I am going with this is why not just use a HELOC at that point, seems like less headache to me and I would imagine the lending costs are lower considering it’s a more competitive market.

    Unless you have already maxed out your HELOC and need more liquidity. In which case I think there is a different problem that needs solving.
    Originally posted by Thales of Miletus

    If you think I have been trying to present myself as intellectually superior, then you truly are a dimwit.
    Originally posted by Toma
    fact.
    Quote Originally Posted by Yolobimmer View Post
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    guessing who I might be, psychologizing me with your non existent degree.

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    yup for sure. i would personally keep my term for myself. i was thinking more for my kids who are in their toddler age, where premiums would be the lowest for this type of policy. do a 20 yr term for them and by the time they are in their 20's, they have a good amount of savings in both cash value and death benefit which they won't have to worry about ever. and with that, us as parents, have control over the policy as if it was ours (infinite banking wise) until we pass it over to them. basically building generational wealth.

    just so you know, im not an agent or do i work for those WFG or whatever haha, im just going by what ive researched and who i've been talking to.

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    I just wish it wasn't called insurance. I don't object to the concept in terms of an investment option. I prefer other investments for myself however.
    Quote Originally Posted by rage2 View Post
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    I almost shat myself after eating way too much at lunch with @killramos so ya, we can start the diaper thread now.

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    Quote Originally Posted by killramos View Post
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    I guess where I am going with this is why not just use a HELOC at that point, seems like less headache to me and I would imagine the lending costs are lower considering it’s a more competitive market.

    Unless you have already maxed out your HELOC and need more liquidity. In which case I think there is a different problem that needs solving.
    I think a better way to look at it is like a tool. Its one tool of many. HELOC is another. But to qualify for a HELOC, there is the proving income, credit process etc.
    With a insurance company you don't get that. So it beneficial to entrepenures or business owners who don't have regular income.
    If a bank freezers your accounts, you can still get cash through your life policy.

    For example person A needs access to cash. They can go to a bank and get cash from a HELOC. Person B financial affairs may not be a standard middleclass model. They may be able to go to a bank but its complicated. So instead they go to thier life policy. If they die, the insurance stlll pays out minue the amount owing.

    If you are very wealthy or very financially acumen you don't put yourself in a position where its only the bank you run to. Thats what I noticed with previous clients anyway.

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    for sure another another tool of investing, not to be replace rrsp or tfsa etc, just another vehicle of investment that includes the benefit of a death benefit, which is probably why its under the insurance category.

    agreed, you get the loan against the cash value, hence no questions asked, no credit checks etc. i believe you can only get a % of the cash value for the loan, i think 80% of it, so depending on how much you put it, it does take a while to build up, hence good for kids, or financially stable.

    also, when (kids) are retired, the withdrawal of the cash value is tax free. the growth of interest and dividends are guaranteed and tax free as well, anything to avoid paying more to uncle sam, is great

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    This sounds like a great idea. How do I get one for my kid?

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    This link has some info worth considering. https://bfy.tw/T4EF
    Quote Originally Posted by rage2 View Post
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    I almost shat myself after eating way too much at lunch with @killramos so ya, we can start the diaper thread now.

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    It’s a great tool for estate planning if you have a corporation with very low cost basis. It’s effective way to ensure beneficiaries have enough cash to pay for taxes. Lenders can also lend back the annual premium on an immediate financing basis with the payout as collateral. If the funds are then invested, the interest is tax deductible too.

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    Quote Originally Posted by Xtrema View Post
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    Buy term and for amount of risk you want to cover. Re-evaluate the risk every few years and adjust coverage accordingly.

    The minute sales guy mention "investment", run the other way.
    This makes sense.

    I had a $500k whole life policy through State Farm that I paid into for 17 years from 22 to 39 at $330/month.
    I ended up cashing it out for about $50k so my insurance cost was about $17k for those 17years and time value.

    Is it a waste? Idk man lol I try not to think too much. It’s just money. It is what it is.

    Idk what current products are like but just go buy the spy and dca and you’ll end up way further ahead unless we hit a 25 year bear Great Depression style lol

    Good luck
    Conversations like this can be intense.

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