This blog will focus on why we DO NOT use Universal Life (UL) or any of the variants of UL for the IBC. We will go through the different types of UL polices and also discuss why it was invented. There is a lot of content out there on UL, and I know you can feel overwhelmed trying to understand every different product and company. Our goal is to give you an overview of what UL is.
What is liquid capital? Liquid capital is money and assets that are easily accessible and free of penalty or restrictions for use. Having liquid reserves is crucial to be able to capitalize on the unforeseen opportunities that appear in front of us throughout life. Nelson Nash said that opportunities will seek out capital. The polar opposite thought that prevails in the world today is that you have to seek out opportunity, but this is not the truth.
As we have stated in previous blogs, whole life insurance has been around for 200+ years. Over that period of time, many high-profile entrepreneurs have used their whole life policies to start businesses or as emergency cash funds during hard times. Even though the idea of the Infinite Banking Concept was not around, these Entrepreneurs understood the value of the liquidity and guarantees that these contracts offered and used them to their advantage.
“Expenses rise to equal income.” –C. Northcote Parkinson. I heard Nelson put it this way, “expenses rise to exceed income.” Finding money for an IBC policy is a problem I help people work through when they’re ready to start an IBC policy. Let me take you through my process.
The simple answer is this happens when a life insurance policy becomes “paid up” within seven years. We’ll dive deeper into this throughout the blog.
What is the best option for you to have success with your Infinite Banking policy? Will one option ruin your plan from the beginning? This is a common topic for someone new to the Infinite Banking Concept to spend hours researching. The first thing you should know is the only thing this refers to is whether or not a life insurance company recognizes the fact you have a loan outstanding.