Most Common Questions
How safe is my money in a bad economy or market crash?
The insurance contracts used for Bank On Yourself have NO exposure to the stock market whatsoever, so it’s very safe! Your plan increases in value every single year, guaranteed, regardless of what the markets are doing. In fact, life insurance companies have a track record of resilience and strength during economic crises going back nearly two centuries. During the great recession, hundreds of banks large and small failed and were either bought out or bailed out, but not a single life insurance company failed. Check out this well researched, fact filled article to learn more about just how safe this strategy really is…
Is my money protected from creditors & lawsuits?
State laws may vary, but generally cash values in a life insurance policy are protected from lawsuits by creditors.
Don't I need to be wealthy already to really benefit?
No. The beauty of Bank On Yourself is that anyone can begin from wherever they are today and progress at their own pace. If you already have a sizable nest egg, Bank On Yourself can help you grow and protect it better than any other way. If you are just getting started building your next egg, there is no better financial vehicle to use than a properly structured Bank On Yourself plan!
What does it cost? Is there a minimum or maximum to get started?
The amount you contribute to your plan is totally up to you. Of course, there is a cost of insurance. The majority of that cost is covered in the first seven to ten years. We tend to think of insurance premiums as an expense, but in the context of a Bank On Yourself plan, premiums are our friend and the bigger the premium, the better…
Why have I never heard of this before? Why isn't everyone doing it?
It’s classic herd mentality and one of the great financial fallacies! The financial services industry has run a massive (and effective) marketing campaign for over fifty years now to convince the populace that the only way to achieve financial security is by investing your savings in the stock market. Wall Street, government politicians and corporate employers have all jumped on the band wagon encouraging everyone to participate. Saving has become synonymous with stock market speculation, despite the fact that speculating is the last thing most people should be doing with their money. When you find yourself going in a different direction than a herd of lemmings, that’s a good indication that you are probably on the right track!
Is it legal?
Absolutely. Life insurance is simply a private, legal, contract between an insurance company and a policy owner. It is regulated by the state (not federal) insurance commissioners and tax treatment is regulated under IRS code 7702.
Is this some sort of MLM?
No, not in any way…
What's the downside?
That depends upon your perspective. It takes time and vision. Infinite Banking/Bank On Yourself is suited to financially conservative people who understand the value of discipline, simplicity and saving as the path to wealth and as a way of life. If you are undisciplined, addicted to credit and keeping up with the Joneses, then you may find Bank On Yourself challenging.
What are the risks?
Very few. Aside from total, global economic collapse or an alien invasion, the only real risk is the solvency of the insurance companies who issue your policy. The companies we work with have the highest industry ratings and a track record of success going back over a century.
Is this just about trading a good rate of return for low rates and more security?
A very common financial fallacy says that insurance as a savings vehicle will give you low risk but also low rates of return. On the surface this can appear to be true, however, with a Bank On Yourself plan, there are many elements that contribute to the overall economic benefit of the system. Those benefits taken as a whole can be equivalent to a rate of return figure that will rival or beat any other financial vehicle or strategy out there.