Both IUL and Whole Life have a cash-value component usable for Infinite Banking, but:

• Whole Life offers guaranteed growth, fixed dividends (if participating), and predictable loan options. Ideal for clients seeking certainty.

• IUL offers market-index–linked growth potential and flexibility, but the growth isn’t guaranteed; caps, participation rates, and fees can limit upside.
TFG often uses IUL for those seeking higher potential growth, while maintaining downside protection through policy design.

With IBC, you can borrow against your life insurance cash value at competitive rates.

• The policy remains active; your death benefit stays intact (minus loan interest if unpaid).

• Loan interest may compound, so careful management is required.

• Unlike traditional bank loans, there is no credit check or external lender approval.

• Repayment is flexible — you can repay on your own schedule, but unpaid loans reduce death benefits.

Not necessarily. These strategies are complementary, not replacements:

•IUL/IBC provides tax-free income, asset protection, and liquidity flexibility.

•401(k)s, IRAs, and other retirement accounts provide tax-deferred or employer-matched contributions, often with lower fees.

•A well-rounded plan often blends traditional retirement accounts with IUL/IBC for diversification and tax planning.

These are insurance terms that affect your cash value growth:

• Cap: The maximum return your policy can earn in a given period (e.g., 12%).

• Floor: The minimum guaranteed return (often 0%), protecting you from market losses.

• Participation Rate: The percentage of the index gain credited to your policy (e.g., 80% of S&P 500 gain).

• TFG designs policies to balance growth potential with safety, often aiming for long-term compounding without risking principal.

Yes, if structured properly:

• Cash value grows tax-deferred.

• Policy loans and withdrawals can be tax-free, provided the policy is managed correctly (avoiding lapses or excess withdrawals).

• Death benefits are generally income-tax-free to beneficiaries.
Proper planning is crucial — mismanagement can trigger taxes or penalties.

IUL policies include:

• Cost of Insurance (COI): Covers your death benefit; increases with age.

• Administrative Fees / Policy Charges: For managing the policy.

• Riders: Optional add-ons (e.g., chronic illness, disability) may have separate costs.
TFG aims to structure policies efficiently to minimize costs while maximizing growth and flexibility.

Typically 3–5 years, depending on premium amounts and policy performance. Early loans may be smaller; TFG emphasizes long-term planning for sustainable Infinite Banking use.

The unpaid loan and interest reduce the death benefit. If the loan plus interest ever exceeds the cash value, the policy could lapse, which may have tax consequences. TFG provides guidance to avoid policy lapses and optimize growth.

Assess your current financial picture.

• Identify short- and long-term goals.

• Model multiple scenarios with IUL/IBC, showing potential growth, cash flow, and tax impacts.

• Adjust structure to balance growth, liquidity, and protection.

This ensures clients understand both risks and benefits, and aren’t locked into unsuitable strategies.

Yes — for example:

• Use policy cash value as a business line of credit for operations or expansions.

• Fund key-person insurance or buy-sell agreements.

• Optimize executive compensation via tax-efficient strategies.

TFG designs solutions that integrate personal and business wealth strategies seamlessly.

• Misconception: “I can withdraw unlimited money without consequences.” → True only if managed carefully; unpaid loans reduce death benefit and may trigger taxes.

• Misconception: “It’s faster than banks for financing major expenses.” → Loans are flexible but require planning; it’s a long-term strategy, not a short-term cash solution.

• Misconception: “I don’t need other retirement or investment accounts.” → Infinite Banking complements, but does not replace, traditional accounts.