Want to see the real-time historical performance of the Infinite Banking Concept? 

Usually, when you hear about policy performance, it's from looking at illustrations. But illustrations aren't "performance," they are projections of future growth, based on current dividends and interest. That's why we love getting the opportunity to share the actual historical performance of Infinite Banking policies, and our philosophy and vision for building our family banking system with multiple policies. 

https://www.youtube.com/watch?v=C39wi4O3838

Today, we're discussing the actual capitalization, growth, dividends, cash values, and death benefit of our Family Bank. Our conversation shifts to the personal legacy we're crafting through our family banking system, a journey that began 11 years ago with our first whole life insurance policy. We recount the pivotal decisions that shaped our financial foundation, such as transitioning our assets from precious metals to a more liquid form. 

We delve into the significance of long-term planning and how our present actions are intended to bless generations to come. Engage with us and consider how you might shape your own infinite banking story.

Lastly, we explore the strategic intricacies of life insurance policies, emphasizing the importance of designing a policy to allow for as large of premiums for as long as possible.

Prior Episodes In This SeriesStructure of the Family Banking SystemDividends on the Annual StatementNew IllustrationsThe Difference in a YearBook A Strategy Call

Prior Episodes In This Series

Part 1 Mar 2022: Why We Started a New Life Insurance Policy

Part 2 Oct 2022: Adding a Second Whole Life Policy

Part 3 Feb 2023: Capitalization Phase - End Of Year Update

Structure of the Family Banking System

In this episode, we take a look at the annual statements for our family banking policies, and the components to be aware of. It’s important to us that we share what we’re doing with our family so that you can see proof of the Infinite Banking Concept in action. In the first policy (listen or watch the full episode to get the details on our 2nd policy as well) we examine, our total premium is $20,000. However, you can break down that premium and see that there are several components at “work” in our premium. 

The base premium is the minimum amount of premium that must be paid every year to keep the policy current. This is actually only a little more than $7,000. The rest of the 20k premium is composed of Paid Up Additions (PUA) and other riders. One such rider is called “waiver of premium.” This rider can only be applied to the base premium, and it protects the policy owner from paying premiums in the event of a disability that prevents working. There is also a term insurance rider on the policy, with its own waiver of premium rider. 

The term insurance rider lasts for 30 years, and the corresponding death benefit will drop off after that term unless it’s converted to additional life insurance. This conversion option allows us to keep that death benefit if we wish, and build additional cash value after it’s converted to whole life insurance. This is a great way to maximize your death benefit when you’re starting out. 

Dividends on the Annual Statement

On our annual summary, you can also see the total accumulated dividend we earned for the year and how it was applied. The line items can get a bit confusing, as it moves between dividends and additional death benefit, but for the year our total dividend was $4,233.15. A large portion of this came from the base policy, while a more significant portion of this came from various PUAs. Our “lifetime” total for dividends earned since 2021 is $7,800.48. So in one year, we earned more dividends than the previous year. This is a testament to the power of compounding interest. 

In this section, you can see that the PUAs are also adding about $2 of death benefit for every dollar of premium...