Do you want to use whole life insurance to store cash, build an emergency/opportunity fund, and create a legacy, but you wish you’d learned about this concept when you were younger? Do you feel like you’re too old for the Infinite Banking Concept (IBC)?

https://www.youtube.com/watch?v=ZX91AY2tYlo

Fortunately, it might not be too late for you to get started. In this episode, we’re going talk about how life insurance works when you start a policy later in life, and how you can make the most of it. So if you want to see if Privatized Banking can still work to build cash value and accelerate time and money freedom, even if you’re starting a policy as a senior, tune in below!

Table of contentsWhere The Infinite Banking Concept Fits In The Bigger PictureHow Old is Too Old for Infinite Banking?The Impact of Privatized Banking Later in LifeHow Can You Use Privatized Banking Now?Transfer of IRAFamily BankingPrivatized Banking As IncomeSocial Security and Pension MaximizationVolatility BufferPermission to SpendAccelerated Death Benefit RiderNot Too Old for Infinite BankingBook A Strategy Call

Where The Infinite Banking Concept Fits In The Bigger Picture

The Infinite Banking Concept is just one step in the greater Cash Flow System.

While it’s nestled into Stage 2, Protection, it also improves everything else around it.  Infinite Banking helps you keep more of the money you make in Stage 1, amplify your cash-flowing asset strategy in Stage 3, and accelerate your Time and Money Freedom.

How Old is Too Old for Infinite Banking?

Many people assume that because Privatized Banking takes time, that after a certain age it’s no longer a viable strategy for them. In reality, there’s more time than you’d think. Your results, after a certain age, will depend more on what you’re hoping to accomplish than anything.

Most people look at life insurance and think of term insurance, the simplest insurance, and have preconceived notions. It’s insurance that is pure cost. And based on experiences with term insurance, people are hesitant to pursue insurance strategies later in life. However, whole life insurance can work for you even if you start in your senior years.

Whether you’re hoping to bridge income, leave a legacy, or round out your estate plan—it’s likely not too late. You can be in your 70s and start your first policy. In reality, most insurance companies will take policies until age 80. So clearly, they believe that it’s valuable enough for someone in their 70s.

Ultimately, this is possible because of the careful actuarial planning of life insurance companies, which allows them to insure people up to that point.

The Impact of Privatized Banking Later in Life

One of the biggest concerns we hear is that the cash value won’t be as large. While it’s true that your break-even point may be later, the trajectory will be more or less the same. The opportunity cost lost in your cash value may only be a few hundred dollars. The amount of cash value is proportionate to the way the policy is designed, and the premiums paid because of that design. The most significant loss is the face value of your death benefit. What would be a $2 million death benefit for a 30-year old is going to be about $1 million for a 50-year-old. For a 70-year-old, it may be closer to $500,000. However, that half a million will have a better impact on your legacy planning than nothing.

The reason the death benefit will decrease the older you are when you start a policy is that the cost of insuring you goes up. Insurance companies know that they’ll have to pay a claim on everyone they provide whole life insurance to; however, they use very careful mortality calculations to do so. The likelihood they’ll pay a claim on a 30-year-old is minuscule. So the costs of insurance are more likely to be covered. Someone in their 70s is likelier to have a claim paid sooner, which means the company has a smaller window to cover the costs of insura...