In my first article, I shared the story of how I found Nelson Nash’s Infinite Banking Concept.  I wanted to pass some lessons learned but in the interest of keeping the post from being too long, I saved it for a second post.

To someone else exploring the Infinite Banking Concept, coming to it from advertisements and videos on YouTube and TikTok, what would I want to share to help you?

1. Read Nelson Nash’s book first Becoming Your Own Banker. Reading the book is non-negotiable. With out it you will get caught up in the noise of click funnels and marketing.
2. Memorize the principles.  Especially – Think Long Range, Don’t Be Afraid to Capitalize, and Rethink your Thinking.
3. Once it “clicks”, focus on finding an agent you can trust and relate to.  Stick to those on the Nelson Nash Institute practitioner finder.  In order to be listed on this page and affiliated with the NNI, agents must complete a course and mentoring program and adhere to a contract and certain standards.
4. All the companies are basically the same actuarily.  They all use the same Commissioner Standard Ordinary (CSO) tables for calculating premium based on mortality rate. The actuarial science and regulations don’t change. The difference in cost per dollar of death benefit comes from their overhead costs of the business and cost of the riders included in the contract.
5. The Paid Up Additions (PUA) rider is really what distinguishes companies and products with regard to IBC.  Not every PUA rider is the same. You want flexibility to pay and keep the rider in force as long as possible with minimum limits and restrictions. With some companies:
   Every PUA rider has a charge for each PUA premium paid – some PUA fees are as high as 14%.
   • Every PUA rider requires you to pay a minimum amount, if you do not pay the minimum PUA you lose the rider. That minimum can be small or large.
   • Some PUA riders require you to max out the PUA or you can lose the PUA rider.
   • Some PUA riders require you to use 100% of dividends to buy PUA or you can lose the rider. For example: if you use the dividend to pay a loan or pay base premium you can lose the PUA rider.
   • Some PUA riders have maximum durations – for example 15 years, after which the rider drops off.
   • Some PUA riders a maximum Death Benefit added from PUA, at which point the PUA rider closes.
6. If you work with an NNI (Nelson Nash Institute) Practioner, they can explain to you why one company, product, and rider is preferred for your situation. Agents don’t work with just one company or use just one product. They have already done the homework to help find the company, product, and design that is best for your situation.
7. A final caution because I mentioned I did talk with an IUL agent. Indexed Universal Life will, just about 100% of the time, look better than Whole Life on an illustration.  I guarantee it.  It is not the scope of this post to discuss it – but if you find yourself infatuated by the bigger numbers, please slow down. Don’t rush into what is a lifetime product. Talk to an authorized IBC practitioner before buying it. Make an effort to understand IUL. I think if you understand it you won’t want to buy it. At the very least, make your decision from a place of knowledge. If you want an IUL, you’ll have to talk to an agent who is not an NNI Practitioner.

I’ll have more on each of these lessons in the future.  Till then…

Semper Reformanda

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