E131: New IRS Rules Impacting IBC and How to Best Navigate Them

11/08/21 • 25 min

This episode discusses the new changes to the IRS rules on designing life insurance policies and how those changes impact the infinite banking concept.

~ Access our Masterclass FREE to podcast listeners here:

https://livingwealth.com/secretbanking/

~ Get resources and transcripts from this episode by visiting:

https://livingwealth.com/e131

Topics Discussed:

Basics of IRS code as it relates to whole life insurance
The goal of IBC
Using is life insurance policies with mutual paying companies
A brief history of life insurance
The impact of Section 7702 of the Internal Revenue Code
Understanding the modified endowment contract (i.e., MEC)
What happened with a base guaranteed interest rate of 4%
Cash values vs. death benefits
The "big change is coming," marketing tactic tickling some ears
Increasing the flexibility and consumer-friendly nature

Episode Resources:

Gain access to our Beginner's Course now FREE to listeners of the podcast here now https://livingwealth.com/beatinflation/

What is Infinite Banking? We make it simple in this article https://livingwealth.com/infinite-banking/

Who was Nelson Nash? Find out in this article https://livingwealth.com/who-is-nelson-nash/

This episode discusses the new changes to the IRS rules on designing life insurance policies and how those changes impact the infinite banking concept.

~ Access our Masterclass FREE to podcast listeners here:

https://livingwealth.com/secretbanking/

~ Get resources and transcripts from this episode by visiting:

https://livingwealth.com/e131

Topics Discussed:

Basics of IRS code as it relates to whole life insurance
The goal of IBC
Using is life insurance policies with mutual paying companies
A brief history of life insurance
The impact of Section 7702 of the Internal Revenue Code
Understanding the modified endowment contract (i.e., MEC)
What happened with a base guaranteed interest rate of 4%
Cash values vs. death benefits
The "big change is coming," marketing tactic tickling some ears
Increasing the flexibility and consumer-friendly nature

Episode Resources:

Gain access to our Beginner's Course now FREE to listeners of the podcast here now https://livingwealth.com/beatinflation/

What is Infinite Banking? We make it simple in this article https://livingwealth.com/infinite-banking/

Who was Nelson Nash? Find out in this article https://livingwealth.com/who-is-nelson-nash/

Previous Episode

E130: How to Decide What's Best: Pay with Cash OR Use IBC Policy

In this episode, we discuss one of the most commonly asked infinite banking questions. When should I use my policy to pay for something, and when should I use cash?

~ Access our Masterclass FREE to podcast listeners here:

https://livingwealth.com/secretbanking/

~ Get resources and transcripts from this episode by visiting:

https://livingwealth.com/e130

Topics Discussed:

Should I borrow from my whole life insurance policy or use cash?
Can I borrow from my whole life insurance policy?
What it means to become your own banking and why it matters
Understanding the two basic ways you pay for something
The fundamental problem Infinite Banking attempts to solve
The real costs of paying cash
Is cash really king?
How money in motion makes more money
Why compound interest is like magic
Example expenses you never thought you could use policy to pay for, but can

Episode Resources:

Gain access to our Beginner's Course now FREE to listeners of the podcast here now https://livingwealth.com/beatinflation/

What is Infinite Banking? We make it simple in this article https://livingwealth.com/infinite-banking/

Who was Nelson Nash? Find out in this article https://livingwealth.com/who-is-nelson-nash/

Next Episode

E132: How Dividend-Paying Whole Life Grow and Allow for Being Your Own Banker

In this episode, we discuss how dividend-paying whole life insurance policies grow and why they are the only tool in the financial world that allows you to become your own banker.

~ Access our Masterclass FREE to podcast listeners here:

https://livingwealth.com/secretbanking/

~ Get resources and transcripts from this episode by visiting:

https://livingwealth.com/e132

Topics Discussed:

Changes the IRS is making to dividend-paying mutual whole life insurance that may will impact you
Why no other financial product affords you the ability to be your own banker
Modified Endowment Contracts
Context from the history of whole life insurance policy regulation
The folklore of a guaranteed 4% and what it really means
How to think about the death benefit vs. the living benefit of policies
Understanding guaranteed cash values
Comparisons of IBC against other financial products

Episode Resources:

Gain access to our Beginner's Course now FREE to listeners of the podcast here now https://livingwealth.com/beatinflation/

What is Infinite Banking? We make it simple in this article https://livingwealth.com/infinite-banking/

Who was Nelson Nash? Find out in this article https://livingwealth.com/who-is-nelson-nash/

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