Q: What is the Infinite Banking Concept?
The idea behind the Infinite Banking Concept, commonly referred to as IBC, has been around for many years. It was with the publishing of the book Becoming Your Own Banker, by R. Nelson Nash, that the actual term Infinite Banking Concept was popularized.
Q: Why didn't someone else come up with this sooner?
In the answer rests the uniqueness of this concept. The underlying contract of a whole life dividend paying life insurance policy has not fundamentally changed in over 100 years. This contract is central to the entire system. So, the concept of how to convert that contract into a tax-advantaged vehicle with similar transactional mechanics of the banking process is what has been developed. The author has created this concept around two divisive platforms that, to date, sets his process apart from anything else in the marketplace. One is that this is completely an educational process, and two; this concept is based on fundamental economic theory. The author is both a practitioner and student of economics as opposed to an agent who depends on commissioned sales for a living.
Q: Is there an "Achilles' Heel" in this system?
Since a perfect system does not exist, there are some obstacles in the details of any system. The particulars in this program would be namely; the commitment of a long term discipline to save (vs. a get rich quick program)…the working knowledge of how to apply this system to the owner’s greatest advantage by following the designated guidelines…the application of the correct insurance contract along with the prescribed options, riders and ratios…and, the belief and understanding that this program works because of fundamental economic principles, U.S. tax laws and insurance contractual guarantees.