Bank on Yourself-(Dividend paying whole life insurance)

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#1 Thu, Dec 1, 2011 - 5:18pm
grym1
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Bank on Yourself-(Dividend paying whole life insurance)

Just need some advice on a situation I'm in. Please comment if you're familiar with this product. 

About 3 years ago I bought into this "Bank on Yourself"' plan. It's a whole life insurance policy that allows you to build cash value very rapidly. My plan costs $3,600 a year. Ive got $10,800.00 invested. The net cash surrender value is $8,142.00. Thats a $2,658.00 hit if I liquidate (to buy Phys metals). The longer I contribute the more I loose if I cash out. So I have to act now. 

I really like the concept of this product and was using it as a retirement vehicle. However, that was before I was really in tune to where our dollar was headed and before I got in to metals. So...what would you do? Thanks.

Edited by: grym1 on Nov 8, 2014 - 5:27am
Thu, Dec 1, 2011 - 10:15pm
Hayman
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Cash it out

Without question, cash it out now. You are not banking on yourself, you are letting the insurance company gamble with your money. And I mean risky risky gambling in things like municipal bonds, Bank stock, MBSs and other debts purchased with your earnings. You are now enlightened. Be glad you only have a couple years in it. I had many more in mine before I ran for cover.

Fri, Dec 2, 2011 - 9:44am (Reply to #2)
grym1
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Thanks Hayman.  

Thanks Hayman.

Sat, Dec 3, 2011 - 11:00pm
Ibcuser
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Bank on Yourself Policy

You got involved in a process that you do not understand. You do not start a permanent life insurance policy to surrender in two years; for that you should have bought term life.

You would also lose money if you buy gold or silver now and sell it by the end of the week.

If you have a positive cash flow, you could start using your cash value to buy metals and if you are lucky and the metals appreciate, you can sell them and put the profits back into your policy.

As time goes by you will see your cash value growing strong by practicing that operation of buying metals, hopefully they appreciate, you sell the metals at a higher price and put your profits into the policy.

In that way you will have the best of both worlds.

The only fear is if the dollar disappears as currency; there are many arguments in this respect.

All we really need is the value of the dollar to be pegged to gold or silver, then the dollar will not devaluate as it is happening now. 

Mon, Dec 5, 2011 - 10:31am (Reply to #4)
grym1
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No, I happen to

No, I happen to understand this concept inside and out. But thanks for telling me otherwise. The question is about taking a hit to move from fiat to tangible assets. It's about holding my own wealth in my hand rather than trusting some company to "oversee" it.

Mon, Dec 5, 2011 - 4:07pm
Ibcuser
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Bank on yourself policy

I think I have heard nobody promoting the IBC or Bank on Yourself saying that the cash surrender in a whole life policy could be bigger than the premiums paid in two years. That takes from 8 to 15 years depending in how you manage your policy.

Even though this seems to be a long time, you would have in the meanwhile liquidity, life insurance protection and in most cases protection against creditors.

If you had $11,500.00 as a cash surrender right now you would not be concerned even though it is fiat money.

Precious metals are still exposed to market volatility and manipulation.

I am in no moment saying that you should not buy precious metals. I just do not want a great tool to be badmouth by those who do not understand it.

Wish you luck and hope you take the right decision.

Wed, Dec 7, 2011 - 10:51am (Reply to #6)
grym1
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Again, I understand

Again, I understand the product and am in no way bashing it. It's the devaluing of the dollar that concerns me. Thanks for your input. 

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