FREQUENTLY ASKED QUESTIONS

 

 

“Will Bank On Yourself Still Work Regardless of the Economic Climate? Is My Money Safe in a Bank On Yourself Plan?”

If you are wondering how safe your money is in a Bank On Yourself plan, given the failures of major banks and Wall Street firms during the past decade, you’re not alone — we get this question a lot! Therefore we have a long answer for you, with a number of facts that should set your mind at ease.

Mutual life insurance companies, such as the ones used for Bank On Yourself, are not publicly traded (stock) companies and are owned by their policyholders.  Thus the pressure of meeting the expectations of Wall Street is not present.

Back in the Great Depression, when over 25% of all banks failed, many of the mutual life companies, including the ones we use, still paid a dividend every single year.  Even in this decade of enormous stock market losses, with banks and other financial institutions failing, the mutual life insurance companies are still paying dividends, and have been little impacted by the whip-sawing of the markets.

The main insurance company we use for Bank On Yourself does not own any subprime mortgages or bad real estate.  Currently, about 75.5% of their assets are held in both corporate and government bonds; and of that 95% of those are the top two safest-rated investment-grade bonds.  NONE of their assets are held in junk bonds. Only 12.1% of their assets are in real estate and mortgages, and most of that is in direct investment in office buildings, shopping malls, etc.  They do own a small amount is in CDO’s, but they are fixed and triple-A-rated.  None of their investments are in default or pending default.  The rest of their funds are held in cash and other instruments.  They are still paying dividends and the policies are performing as well or better than we had projected for our clients.

On an annual basis, the state insurance commissioners monitor the investments and financial strength of each life insurance company licensed in their state.  If a company fails to maintain sufficient reserves and surplus capital, the insurance commissioner will take over management of the company.  In addition, the ratings agencies review all of the life insurance company’s ratings annually to make sure there’s been no deterioration in their financial position.

This close and constant scrutiny of life insurance companies keeps them investing assets very conservatively.

The critical question really is, “Do you have ENOUGH cash value life insurance in your financial plan?” This is the ideal time for saving.  Instead of getting caught up in the mass hysteria, hopefully you’re thinking carefully about how you can save money and leverage the money that you have saved.

The key for our clients and our economy to be able to weather this financial storm is to save our money in a safe place where both the principle and growth are protected. We simply cannot think of a safer, more advantageous place than cash value life insurance with a highly rated mutual life company. If you would like to talk more about your situation and how you can strengthen your financial position, in spite of this turbulent financial climate, feel free to contact us to set up an appointment with an advisor.

 

“Why Haven’t I Heard About Bank On Yourself Before?”

This is a question we get a lot (although not as much now, as Bank On Yourself is rapidly growing in popularity!). The main reason is that most agents and financial advisors have never been trained in this concept. In fact, most insurance companies are not even aware of how this concept could work for their clients (if they even have policies that can work for the B.O.Y concept, which only a handful of companies do).

A second reason is, when a policy is structured this way, the commission the advisor receives is typically only around HALF what they would receive from selling a traditional insurance policy. So, even if your agent or financial planner is aware of the concept, they might not want to share it with you….

One thing our clients would tell you though, is once they starting practicing the Bank On Yourself concept, they sure wished they had heard about it sooner! (To hear some other things our clients are saying about Bank On Yourself, just visit our True Stories page.)

 

“Is this Bank On Yourself program the same thing as LEAP, or other investment or financial programs I have heard about?”

No. Bank on Yourself is a unique concept, and is not the same as nor derived from any other financial program (although it has some similarities to The Infinite Banking Concept® financial system**). Some of the unique benefits provided by the use of this concept to manage and grow your wealth include:

  • Consistent growth
  • Protection of your wealth from stock market and real estate market fluctuations
  • The ability to finance large purchases through your policy, and recapture the interest you would otherwise have paid to a bank
  • Permanent elimination of credit card debt
  • May protect your wealth from lawsuits, government entities, and other potential  threats*
  • Liquid access to your money whenever you need it
  • Tax benefits
  • And much much more!

For a complete, detailed explanation of some of these benefits, please download the Bank on Yourself Special report at: www.findoutmorenow.com  (Enter the Pass Code JS29.)

OR you can also visit the Bank On Yourself Challenge page to see a full list of the benefits the concept can provide. (If you know of some other method that can provide all these benefits, you could even win $100,000!) Just go to www.bankonyourself.com/challenge.

 

“I’ve been burned before, and this Bank On Yourself thing sounds too good to be true. How do I know this concept will work for me?”

Bank On Yourself is NOT a “get-rich-quick” process (if you meet an advisor who tells you it is, run the other way!). It will take most people 4-7 years to capitalize their policy to the point where they can use them for large purchases. However, the way these policies work, the more you use them, the more efficient they get, so you can certainly start using them for smaller purchases within the first 2-3 years.

You will most likely NOT become a millionaire in 10 years with Bank on Yourself. However, you could quite well be a millionaire (or even a multi-millionaire) in 25-30 years, depending on how much you capitalize and use your policy(s). (How much money you will have is really up to you!)

Bank On Yourself is simply a safe, steady, secure way to save and grow your money for the future, and still be able to use it at the same time. And when you pass on, your Bank On Yourself legacy will pass on to your heirs, income-tax-free and without penalty.*

If you would like more information on Bank On Yourself, there are a number of good resources available. For true-life stories of people who are using the concept, as well as a detailed explanation of how the “typical” Bank On Yourself Analysis process works, check out Pamela Yellen’s book, Bank On Yourself.

For a more in-depth, detailed look at how and why these policies work the way they do, you may find an explanation of the foundations and origin of the The Infinite Banking Concept system helpful. Nelson Nash’s book, Becoming Your Own Banker provides this. You may ask us for a copy of this book on your first appointment, or you may request one by calling our office at 614-536-0088. For non-clients, cost is $20. (Free for clients.) (We recommend you read the Bank On Yourself Special Report or Pamela Yellen’s book, Bank On Yourself, first to understand the general concepts, as Nash’s book is rather technical.)

You may also wish to read The Pirates of Manhattan, by Barry J. Dyke, which is an excellent and well-researched expose` of the financial markets and different vehicles that exist for building wealth (including Bank On Yourself), and their differences and benefits.

 

“Okay, it sounds great, and I’ve downloaded and read the Special Report, so now what?”

The next step in learning to Bank On Yourself is to request a free consultation with an Authorized Bank On Yourself Advisor. Your advisor will be able to answer your questions, explain parts of the concept that are still a little “fuzzy” to you, and ultimately put together a personalized plan to show you exactly how you will be able to use and benefit from Bank On Yourself.

Each person’s situation is different, and there are no two plans that will look exactly alike, which is why it is essential that you meet with an advisor who can tailor something especially for you – a plan designed to accomplish your specific financial goals and desires. Your advisor will work one-on-one with you, to design something suited to your needs. With Bank On Yourself, there is no such thing as a one-size-fits-all plan or “quote”. Each plan is very individualized to your specific situation.

There are several ways in which you can request your Bank On Yourself Analysis:

Follow the link at the end of the Special Report, and fill out and submit the online form. Our office will then contact you by phone to set up your appointment.

Call Rose in our office at (614) 536-0088, and tell her you found out about Bank on Yourself through our website, and you would like to set up an appointment with an advisor.

Email Rose at rsarko@eaglefinancialsolutions.com and let her know you found out about Bank On Yourself through our website, and that you would like to set up an appointment with an advisor. Please provide a good time to reach you, and a telephone number where you can be reached during normal business hours.

 

“Are there any costs or fees involved?”

There is no cost to receive a Bank On Yourself Analysis.* If you receive your Analysis and like what you see (which most do) and want to implement a Bank On Yourself Plan to help you achieve your financial goals, there is also no fee to design it.

All expenses and fees, including the cost of insurance and commissions, will have already been taken into account in the Analysis your advisor provides you, so there are no additional fees to you. Your Analysis will reveal the bottom-line numbers and results you could achieve through your own Bank On Yourself plan – and usually these are based on the conservative side.

*(Note: We may charge a fee for investment planning, college planning, or other services that we provide separate from Bank On Yourself.)

 

“What will happen during my Free Bank On Yourself Analysis? Will I be sold anything?”

Authorized Bank On Yourself Advisors generally see ourselves as educators, not as “salespeople.” We believe that the Bank On Yourself strategy speaks for itself, and that almost everyone can benefit from using this concept! Therefore, we do not feel there is any need any high-pressure sales techniques. If you like what you’ve heard so far, we will be happy to meet with you and provide you with a personalized plan. It is up to you whether you decide you would like to implement the plan.

However, once seeing what this strategy can do for them, most people simply can find no valid reason why they should lose out on all of these benefits by not going ahead with their own Bank On Yourself plan!

During your Analysis appointment:

  • We will ask that you bring some financial documents with you. We will not keep these documents, and in many cases, we will not even need copies of them. For the most part, we require that you bring these simply so that your advisor will have a basis to discuss your financial situation with you based on real numbers, without you having to just “guess” at the various aspects of your finances.
  • Your advisor will discuss your financial situation with you, including:**

A. Your current financial worries, fears, or concerns
B. Your current and future financial goals and what you would like to use Bank On Yourself to accomplish
C. Your cash flow, expenses, and financial needs

  •  Your advisor will answer any questions you may have about the Bank on Yourself concept and the planning process.
  • Your advisor will make notes on financial information, your goals, and any special concerns, and may make copies of some documents in some cases (with your permission).**
  • If you would like to learn more, and have a personalized plan designed for you, your advisor will set up a follow-up appointment for you, usually for the following week, so have your day-planner handy.
  • Your advisor will often email you a detailed budget worksheet, to help you see exactly where your money is currently being spent. You can fill this out at home, and email it or fax it back, or bring it with you to your next appointment.

 ** PLEASE NOTE: All of your information will be kept confidential! We require this information simply in order to develop a comprehensive financial picture of your situation, so that we can determine how to best help you achieve your financial goals. Please see our Privacy Policy if you would like more information about how your personal information is used.

 

“I already have a financial advisor, and I don’t want to work with anyone else. Can my current advisor help me implement the Bank on Yourself strategy?”

For the sake of your financial health, we strongly recommend that you NOT do this! Most people, including most financial professionals, have never heard of the Bank on Yourself strategy. Not being familiar with the concept, they will not be aware of of its full benefits, or its proper use.

Your current advisor will likely either:

A.) Discourage you from pursuing or even learning more about this strategy, in which case you will stay in your current financial situation, and will lose out on all of the many life-changing benefits you could have had with Bank On Yourself, or

B.) Attempt to sell you some other type of life-insurance product which will not be designed for this strategy, and you will thus lose all the benefits of a correctly structured Bank on Yourself policy, and potentially even put your money at risk!

Currently, there are only about 200 advisors in the United States who are trained in the use of this method. We STRONGLY recommend that you make sure that your advisor is a Bank On Yourself Authorized Advisor before doing any business with them. Bank On Yourself Authorized Advisors receive rigorous and ongoing training in the use of the Bank On Yourself method (for more on this process visit: http://www.bankonyourself.com/certified-advisors). If you would like the certification department to check on an advisor for you, please email the office of Pamela Yellen at info@bankonyourself.com.

We currently work with many clients who have other financial advisors who help them with investments or retirement planning, and this is perfectly fine. We can help you with these needs as well, if you wish, but our focus is on making sure that you get the most out of your Bank on Yourself plan, to ensure a financially healthy future for the rest of your life and for generations to come!

If you still wish to try to have your current advisor help you with this concept, first ask yourself this:

You probably have a family doctor, but would you go to your family doctor for heart surgery?

 

“Other than being Bank On Yourself Authorized, are you registered with any good business practices organizations?”

Yes. Eagle Financial Solutions is an accredited member of the Better Business Bureau of Central Ohio. All of our advisors are insurance licensed in a number of states, including Ohio. Our College Planning division is also a member of the National Association of College Funding Advisors, and the College Planning Network.

 

“Do I have to have a lot of money to start? How much do I need to put into a plan for Bank On Yourself to benefit me?”

No, you don’t have to be rich to Bank On Yourself! However, what you do have to have is a burning desire to achieve your financial goals. If you are not committed to making a positive change in your financial situation, you may not be disciplined enough to follow the plan, and will tend to go back to doing things the way you always have, and end up right back where you started out.

But, if you use it correctly, even a small Bank On Yourself plan can have a very positive impact on your situation! Some people have used Bank On Yourself to become completely consumer-debt free in only a year or two, and others have been able to start financing cars or other purchases themselves within just a couple of years. Others wish to use their plan for larger purchases, and put off borrowing from their plans for a number of years. While each situation is different, what really matters is your ability to commit to the concept, and to change the way you handle your finances for the long term, in order to provide a more secure future for yourself and your family.

As for how much you should start with, we can’t tell you that here, because every situation is totally different! If you already have an amount in mind, that is great. But if you’re like most people, and you’re really not sure, your Bank On Yourself advisor will go through your budget with you in detail, to find an amount that is comfortable and realistic for your particular situation and lifestyle.

 

“I’m no Spring Chicken! Can Bank On Yourself still work for me?”

Yes! We have a number of clients age 60 or older. Depending on your cash flow situation, you may not be able to build up as much capital in the policy as someone younger. However, you likely have different priorities, as well.

Bank On Yourself is very flexible, and can be used by people of any age. For an older client, Bank On Yourself is an excellent way to pass on a legacy of financial security and wisdom to your children and/or grandchildren. Not only will the death benefit in your policy pass on to your heirs income-tax-free,* but if you share the Bank On Yourself concept with them, they can continue the strategy themselves to ensure a financially secure future that can be passed on to future generations.

If for health or other reasons, you are not able to be insured, in most cases, you can easily start your Bank On Yourself policy on someone else like a spouse, child, grandchild, or business partner, and the cash values in the policy will remain yours to use for your lifetime, after which it will pass to the insured. (If you have questions about how this works, please contact us to set up an appointment with an advisor.)

This link also provides some helpful information on how Bank On Yourself can work for seniors: http://www.bankonyourself.com/bank-on-yourself-for-seniors

 

“When I pay interest on my policy loan, where does it go?”

Many people wonder about this, since they may have read about “recapturing” the interest they pay back to their policies. While this is true in a way, it is a bit more complicated than that.

When you make an interest payment (or a loan repayment for that matter), it doesn’t actually go into your own individual policy—it goes into the insurance company’s general fund. In fact, that’s where your policy loan came from too!

Technically, all funds are really held in the company’s general fund—then paid out to the policy owners who request them, based on the policy/ies that you own. This is why you may hear that a mutual company is partly owned by its policy holders.

So while the interest charged on a policy loan may not be adding immediately to your cash value, it is adding to the growth and profitability of the company, and ultimately that is a good thing for everyone!

The interest you pay is adding to the bottom line, and bringing in earnings to the company in which you are part-owner—instead of going to benefit an outside bank or credit card company—while you have ready access to funds to create your own source of financing, and continue to earn dividends in the meantime. We call that a win/win scenario!

 

If you have any questions not answered here, please don’t hesitate to contact us immediately by phone (614-536-0088) or email (rsarko@eaglefinancialsolutions.com). We’re looking forward to working with you!

*In most states. Consult a qualified tax advisor or attorney for your state to be sure.

**(The Infinite Banking Concept® is a registered trademark of Infinite Banking Concepts, LLC.)