![]() ![]() What’s interesting is how dividend rates spiked initially and then plummeted far below what was originally illustrated. The study shows the policy’s initial dividend projections side by side with the actual dividends paid over the last 42-years. In fact, we did an entire study using an actual overfunded Whole Life policy from 1980. Infinite banking whole life insurance can benefit greatly from the interest rate volatility we’re experiencing today. Don’t forget that this happens in a tax-exempt environment so that may feel more like 6%-9% depending on your tax bracket. Projections for infinite banking Whole Life insurance today currently projects a long-term internal growth rate of between 4%-5%. This would entitle you to a bigger cut of future dividend pools, which increases the future guaranteed cash value, and increases your cut of future Whole Life dividends, and so on. When you elect to roll these higher dividends back into the policy, they become part of a new guaranteed cash value calculation. But underwriting profits from all their other insurance lines contribute to your dividend, which is why Whole Life even outperforms in low-interest eras. These dividends from an infinite banking policy often rise with prevailing interest rates you share in the yield of their entire investment portfolio. These Whole Life policies offer guaranteed growth between 2-3% in addition to annual dividend payments, which aren’t guaranteed but have been paid every year for over 150 years by the strongest mutual companies. ![]() So not only do you become a customer when you buy an infinite banking whole life insurance policy, but you also become part owner of the underlying insurance company. You are the product!Ĭonversely, mutual insurance companies are actually owned by their whole life policyholders, hence the word mutual. Whatever taxable savings rate big banks pay to their depositors pales in comparison to what they’ll charge you to take a loan for the exact same amount.Īt a traditional bank they may call you a customer, but have no illusions. This website is not intended for use by residents of the European Union (EU).Similar to how big banks have both savings and lending capabilities, so too does a participating Whole Life insurance policy. Capital Markets products are not FDIC insured not deposits or obligations of, or guaranteed by, CIBC Bank USA and are subject to investment risk, including loss of principal. and CIBC Bank USA, provide different products and services. Trust services and investment products are not FDIC insured, not deposits or obligations of, or guaranteed by, CIBC Bank USA or CIBC National Trust Company, and are subject to investment risk, including loss of principal.Ĭommercial real estate products and services offered by CIBC Bank USA and CIBC Inc.ĬIBC Capital Markets is a trademark brand name under which CIBC and some of its subsidiaries, including CIBC World Markets Inc., CIBC World Markets Corp. (a registered investment adviser) all of which are wholly owned subsidiaries of CIBC Private Wealth Group, LLC - and the private banking division of CIBC Bank USA. CIBC Private Wealth Management includes CIBC National Trust Company, CIBC Delaware Trust Company and CIBC Private Wealth Advisors, Inc. ![]() Trust services and investment products are offered by CIBC Private Wealth Management. All loans are subject to credit approval. ![]() Consumer and commercial banking products and services are offered through CIBC Bank USA. ![]()
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