Friday, September 20, 2013

Borrowing Money On Your Terms Will Never Be Easier Than This...

Borrowing money from a Bank On Yourself/IBC (Infinite Banking Concept) policy is the easiest way to borrow money in existence…  
Loan Approval in Less Than Five Minutes 

Applying for a loan is a major hassle.

Here are some of the things you'll need to get a loan in America today: 
a long application form
a close analysis of your credit report and score
a steady job
a certain income level
a certain amount of assets
proof of job, income, and assets with documentation such as pay stubs and tax returns
few other debts
money to pay loan origination and mortgage broker fees
mountains of signed paperwork.

After all this hassle, there's no guarantee your bank will approve you for a loan.

What if there were a better, easier, smoother way to borrow money? 

IBC/Bank On Yourself policy policies come with guaranteed loan provisions. In simple language, this means that the insurance company has a legal obligation to lend you money whenever you want. It won't ask you any questions. And you won't go through any loan application process.

The insurance company is willing to do this because it holds your money, so it's not taking any risk by lending to you.

The catch is that you can borrow only as much as you've saved up in your IBC/Bank On Yourself policy. For example, if you've got $30,000 in cash value, you can get a loan from the insurance company for up to 92% of your cash value.  In this example, you can have a guaranteed loan up to $27,600 with the life insurance company keeping a small reserve as a buffer.

Once you've funded your IBC/Bank On Yourself policy, you'll never use a traditional bank again. Nelson Nash, the originator of the Becoming Your Own Banker concept, at one point had over 40 policies and he's repeatedly said he hasn't needed to step foot in a bank for decades.

What are the advantages of borrowing money from a mutual insurance company over a traditional bank? There are many but I want to tell you about four of them.

Advantage #1 – Guaranteed Loans 

If you have $30,000 saved in your IBC/Bank On Yourself policy borrow as much as 92% from the mutual insurance company, no questions asked. The insurance company can't refuse you for a loan. As part owner of the mutual insurance company, you're given this perk with your policy.
Imagine how powerful this is. When do you need money most? It could be you just lost a job and are in transition to find another one. Or your business could need a small infusion of cash to get through some temporary setbacks.

When you apply for a loan from a traditional bank, there are no guarantees the bank will approve you. If you've just lost your job and have no income… forget it. Your loan officer will never approve your loan.

If your business is struggling, your loan officer may decline you access to new money or a line of credit because of your hard times.

Advantage #2 – No Applications or Credit Checks 

When I first opened my IBC/Bank On Yourself policies, I was in the market to replace a vehicle . I planned to get a loan from a bank to pay for it. But I knew my policy had enough cash for this project, and I wanted to test the loan process to see for myself.

I picked up the phone, and I told the customer service rep I wanted to take out a policy loan. She asked me for my policy number and then asked how much I wanted.

She punched away on her keyboard for a couple minutes and then ended by saying, "You'll get a check in three business days." Sure enough, it showed up in my mailbox at the end of the week.

I couldn't believe it.

Now, if I took out this loan from a traditional bank, I'd likely have to set aside a couple of hours one afternoon to fill out all of the paperwork and gather all of the documentation for the loan officer. Then I'd wait another week for all of the papers to shuffle around to each person involved.

Advantage #3 – Setting Your Own Terms 

With a loan from a mutual insurance company against your policy, you're in full control. You set the terms of repayment.

The insurance company will charge you a minimum amount of interest for the loan. Right now, rates are between 4.5% and 5%. Some mutual companies are lower; some are higher.

And the company charges this interest because if it lends you and other policyholders money, it can't invest it long term to meet its eventual commitments to you.

But do you want to set up a seven-year, rather than a five-year, payback schedule on your loan so your payments are lower? Go for it.

Do you want to pay off your loan over 10 years? No problem.

Or what if you want to change your payback schedule from a five-year payback to a 10-year payback midterm?

Again, no problem.

Once you've funded your policy long enough, you could also have the option to never pay back the loan if you don't want to. And the beautiful thing is that the insurance company couldn't care less if you did.

How can that be?

If you don't pay back your loan, the insurance company will just keep track of the interest you owe it.  
It knows you're going to die someday. And when you do, it'll just pay off the loan and accrued interest with the proceeds of your family's death benefit check.

Advantage #4 – Flexibility 

What happens if you have a car loan from a bank and you start missing payments? First, your credit score will take a hit. Once you miss enough payments, your bank will send the local towing company for a midnight visit to seize your car.

What happens if you start missing your mortgage payments? The same thing. Your credit score takes a hit. You'll start getting letters from the bank. Eventually, the bank will foreclose on your house and kick you to the curb.

With a loan from your mutual insurance company, you've got plenty of flexibility for unknown events life might throw at you.

Need a couple of months to take off making loan payments because you lost your job or just had a big unexpected expense? No problem. You won't have to worry about damaging your credit score, or the bank repossessing your car.

Of course, it's not a good habit to get into missing payments. But it sure is a nice option to have if you need to use it.
Build Wealth Paying Back Policy Loans 

In short, IBC/Bank On Yourself policies offer a powerful, unique, and unmatched alternative to the traditional financing process with banks.

With enough commitment to funding a set of policies, you can work toward eliminating traditional banks from your life for good.

Just be sure to remember the

 4 Golden Rules of Becoming Your Own Banker:

1.  Think Long-Term. (This is not a get rich quick scheme.)
2.  Don’t Be Afraid To Capitalize Your Policies.  (The more you save, the more opportunities you will have.)
3.  Don’t Steal From Yourself.  (Pay yourself with interest when you borrow from your policy)
4.  Stop Working With Banks.  (They are the source of nearly all financial problems we encounter.)

John Montoya is an authorized advisor with Bank On Yourself and an IBC Practitioner with the Infinite Banking Institute.  He can be contacted at (925)386-6639 or

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