a. Getting to know the client:

• • We collect comprehensive financial data, including income, expenses, assets, liabilities, and financial goals, while also focusing on the individual’s interest in utilizing the Infinite Banking Concept (IBC).         

    b. Identify Financial Goals:

• • Understand how the individual plans to use the Infinite Banking Concept, such as funding major purchases, real estate investments, retirement income, or legacy planning.

    c. Assess Current Coverage:

• • Evaluate existing life insurance policies in the context of IBC to determine if they align with the strategy’s principles and how they can be integrated.

    d. Calculate High Cash Value:

• • For IBC, the emphasis is on policies with high cash value growth. Calculate the necessary death benefit while prioritizing policies that maximize cash value growth over time.

    e. Evaluate Premiums and Contributions:

• • Determine the premium amounts and contributions required to build up the desired cash value over time, ensuring they fit within the individual’s financial capacity.

    f. Evaluate Education and Childcare Costs:

• • Project the costs of education and childcare for dependents to determine how the Infinite Banking Concept can contribute to covering these expenses.

    g. Consider Final Expenses and Medical Costs:

• • Account for funeral expenses, potential medical costs and taxes that may arise after the insured’s passing.

    h. Analyze Future Financial Needs:

• • Forecast potential future financial needs of the family, such as retirement funding, healthcare expenses, and long-term care costs.

    i. Assess Available Assets:

• • Evaluate existing savings, investments, and other assets to determine IBC suitability.   

    j. Choose the Best Insurer to execute the Infinite Banking Concept:

• • Determine the most suitable Insurance carrier based on the analysis, to get the best and maximum cash value.   

    k. Calculate Required Coverage Amount:

• • Calculate the total life insurance coverage amount needed by adding up income replacement, debt coverage, education costs, final expenses, any other financial obligations or how much is needed for an Immediate Finance Arrangement or Insured Retirement Program.

    l. Review Beneficiary Designations:

• • Ensure that beneficiary designations on existing policies and the new policy align with the insured’s intentions and current family situation.

    m. Factor in Future Changes:

• • Anticipate changes in financial circumstances over time, such as career advancements, company growth, new dependents, or paying off debts, and how these might affect life insurance needs.

    n. Cash Flow Management:

• • Analyze the individual’s cash flow to ensure that policy premiums, loan repayments, and other financial commitments related to IBC can be comfortably managed.

    o. Tax Implications and Estate Planning:

• • Consider the tax advantages of IBC and how it fits into the individual’s overall estate planning and legacy goals.

Remember that the Infinite Banking Concept is a specialized strategy that requires a deep understanding of both whole life insurance and financial management. It’s advisable to work with professionals who are experienced in implementing IBC and can tailor the strategy to the individual’s unique circumstances and goals.

    a. Identify Infinite Banking Concept Goals:

1. • Understand the individual’s financial goals and how they align with the principles of the Infinite Banking Concept. This includes needs such as funding purchases, investments, retirement income, and legacy planning.

    b. Select a Reputable Insurance Company:

1. • Choose a reputable insurance company in Canada that offers whole life insurance products suitable for IBC. Consider the company’s financial stability, policy features, and track record.

    c. Determine Initial Death Benefit:

1. • Calculate the initial death benefit based on the individual’s life insurance needs and financial circumstances. The focus should be on creating a policy with competitive death benefit costs while maximizing cash value growth.

    d. Maximize Cash Value Growth:

1. • Optimize the policy structure, premium payments, and dividend options to enhance the growth of the cash value component.

    e. Tax Implications:

1. • Understand the tax implications of using policy loans within IBC. Whole life insurance policy loans are generally tax-free, but it’s important to ensure compliance with tax regulations.

    a. Policy Design:

1. • The way the policy is designed is the utmost importance in maxmizing cash value growth.

    b. Additional Deposit Option:

1. • Once the policy is properly designed, use the maximum ADO to overfund the policy.

    a. Cash Value Summary:

1. • Once a cash value summary has been issued after the policy has been overfunded, the client can proceed to applying for the loan.

    b. Borrow AGAINST the Policy:

1. • For the Infinite Banking Concept to work, the client must choose a Collateral Loan. This will ensure that the client receives the money TAX-FREE, the policy stays in-force and that the cash value remains the same value for continual growth in the policy.

    c. Loan Repayment:

• • The loan does not have to be repaid during the life of the policyholder. Instead, it can be deducted from the death benefit uopn claim. However, it is recommended to pay the monthly interest, so that the loan does not compound.

    a. Choose the right investment vehicle:

1. • Invest in a NON-Registered investment like a non-registered segregated fund, investment property and some business investments so that the interest on the loan is tax-deductible.

    b. Interest Payments:

1. • Use the growth of your investment to pay for the interest and thereby avoiding compounding growth of the loan.

    a. Reinvest:

1. • Use the option to overfund the policy again.

    b. Get another Loan:

1. • Get another collateral loan.

    c. Reinvest:

1. • Reinvest in a non-registered investment.