Thursday, July 30, 2020

IBC: Planning For Your First (or Next) IBC Policy

Sometimes it's not possible to get started with an Infinite Banking designed Whole Life policy right away.

One of the main reasons could be due to cash flow but it’s possible a convertible term policy would be an option to consider if the minimum monthly contribution of $500 is not in the cards just yet to get started with IBC.  

Instead you could budget $20-50 a month for a 10 year term policy now.  Your age, health rating, and amount of death benefit will ultimately determine your monthly premium.  This would guarantee you have the ability to start an IBC designed Whole Life policy by locking in your insurability today so that you can get started anytime in the next 10 years. 

There is also a credit for the previous 12 months of premium when the term policy is converted to an IBC designed Whole Life policy.  If you are married and/or have kids, the death benefit from the term policy gives your family added protection.  If you are single, then the convertible term policy is merely to guarantee your health so that you qualify for the IBC Whole Life policy when ready.

I started in the life insurance industry in 1998.  I’ve seen a number of people wait to get started for various reasons only to lose their health (prostate cancer, stroke, diabetes, complications from a car accident, etc.). I’ve seen a lot of bad luck happen to good people.  For that reason, I believe you should at a minimum consider a convertible 10 year term policy.

This type of pre-IBC planning is what I refer to as "Future Planning".  It also works great if you already have one or more IBC Whole Life policies.

I keep a $2m term policy on myself despite owning multiple IBC designed Whole Life policies.  I keep it available so I know with 100% certainty I can open my next IBC policy even if my health changes for the worse.

And when I eventually convert my existing term policy to Whole Life, I'll also look to obtain another 10 year term policy so I can repeat the same process for the next 10 year window of my life.  

You may ask yourself why a 10 Year Convertible Term? The reason is that in my experience, people who undertake to practice IBC convert all of the death benefit in their term policy on average by the 5th year. Unless you feel a need for a substantially longer term period, a 10 Year Convertible Term works extremely well for it's ultimate planned use which is conversion to an IBC designed Whole Life policy.

If you would like to learn more about getting yourself set up for your first or next IBC plan, let me know.  You can find me here:

Thank you,

John Montoya

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