The Infinite Banking Concept
Sarry learned about the Infinite Banking Concept centered around whole-life insurance. In the real estate industry, it’s largely known as the “Bank on Yourself” concept. However, there is no difference between them. As he came to exhaustively understand these concepts, he saw an opportunity to save retirement accounts, real estate properties, and businesses from market failures and other risks. Many years ago through his brother, James Prendamano himself found the “Bank on Yourself” concept and has never looked back. Prendamano says that it stands the test of time, like in 2008 when companies like Lehman Brothers collapsed upon itself.
Term Life Insurance
Term life insurance, as Ibrahim explains, has a set time period that is usually 10, 20, or 30 years. It provides a death benefit only and has no cash value or equity in it. It is solely for protection against premature death.
Whole Life Insurance
On the other hand, whole life insurance not only provides a death benefit, it has cash value and is not defined by a set period of time. Additionally, a portion is also invested by insurance carriers and builds cash value. According to Sarry Ibrahim, that payout is approximately five times the amount of a term policy. Also attractive is the ability to borrow from yourself, up to 90% of your cash value in the whole policy. You literally have to sign a one-page document, says Ibrahim, in order to do so. “It’s not just about acquiring a nest egg; it’s about protecting it, too,” emphasizes James Prendamano.
A Great Analogy for Whole Life v. Term Life Insurance
Whole life insurance is like buying a home, and term life insurance is like renting a home. It’s as simple as that, according to Sarry Ibrahim. James Prendamano loves the analogy, of course, it’s quite easy for everyone to understand.
Life Insurance Companies based on the Infinite Banking Concept:
- Lafayette
- Forestershttps://www.foresters.com/en#gref
- Security Mutual
- Mass Mutualhttps://www.massmutual.com/
You should tune in and listen to this entire podcast on the benefits of the Bank on Yourself concept.
https://podcasts.apple.com/us/podcast/id1521479650?i=1000518168146
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