Is the Infinite Banking Concept a Scam?

Life Benefits designs, sells, and services high cash value participating whole life insurance policies, convertible term insurance, and fixed annuities in all 50 states.

The idea behind the Infinite Banking Concept (IBC) isn’t new. People have been using participating whole life insurance (See: What is Participating Whole Life Insurance?) to self-finance purchases for well over 100 years.

See this link about how the founder of Finck’s Cigar Company (right) self-financed himself into business with a loan from his life insurance policy. (This particular example was brought to our attention by one of our clients who is a descendent of Finck.)

Then read this financial statement released by the White House in May of 2012 and understand that former Vice President Joe Biden (left) is using his MassMutual Participating Whole Life Insurance Policies similar to what the IBC (AKA Becoming Your Own Banker) outlines.

So is IBC a scam, a Ponzi scheme or a fraud? No. Yet is IBC the best way, or the only way as some claim it to be, of taking advantage of this age old phenomena which allows you to collateralize the cash value build up in participating whole life insurance and use it to self-finance other investments, projects and purchases? The answer to that is a very definite NO! IBC has only been around since the year 2000 while people have been self-financing by collateralizing the cash values in their participating whole life insurance policies for well over 100 years! R. Nelson Nash the author of Becoming Your Own Banker: Unlock the Infinite Banking Concept boldly states that he didn’t invent this concept but only discovered how to use it for himself.

So is IBC the official or required method for leveraging the cash value build up which occurs in participating whole life insurance? Absolutely not! Is IBC for everybody? Absolutely not! Many people desire more than just a mechanical methodology to follow and it is these people who we consult and who benefit from our consulting services.

We are here to help you create value, wealth and abundance in your life and the lives of those who you interact with on a daily basis. Winning Your Financial GAME with The Perpetual Wealth Code™ is our emphasis. We are not here just to sell you a life insurance policy because self-financing your investments, projects and purchases doesn’t require you to own a participating whole life insurance policy. At the same time owning participating whole life insurance will enhance YFG and therefore we do design and sell the policies which will help you accomplish that.

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