Decentralization and the infinite banking concept, the R. Nash method.

Sometimes to truly learn we have to suspend our belief in what we have been previously told and objectively listen to new ideas.

I have recently realized by studying the infinite banking concept that it taught people how to understand the banking system and through that understanding it taught them how to free themselves from the banking system. Once again knowledge provides the power to achieve freedom.

It it is ironic that the 50-year-old Infinite Banking Concept, created by R. Nelson Nash, which predates the development of both the Internet and the Blockchain, provides clear, simple, step-by-step instructions to free you from dependence on the modern banking system. This is true financial decentralization, both literally and figuratively .

It is equally ironic, that the main tool of freedom; whole life insurance, has existed for over 150 years in this country. It’s existence and it’s rediscovery bring to mind a quote attributed to the famous scientist Albert Einstein;

... there are a few new ideas under the sun, but many ones that we have forgotten.

Whole Life Insurance, as a financial tool was well know and used by multiple generations of farmers in America for over 150 years in America. Quite simply Whole life insurance was a life insurance policy that a farmer took out when he was very young and he used it for his entire life, as indicated by the name “whole life”. A “Whole Life” life insurance policy contains as an integral or core component, a savings account called the “Cash Value” of the policy, upon which the insurance company pays the Policy owner a guaranteed rate of compound interest. The guaranteed interest paid is “compound interest” and it accumulates within the savings account portion of the “Whole Life” insurance policy called the “Cash Value” policy tax free .

The owner is allowed to apply and receive “loans” against the cash value, for which he pays a pre-agreed upon rate of simple interest for the life of the policy, which is essentially in effect his whole life, because the policy is created to last his whole life.

The value of this “cash value” portion is determined by the premiums paid to the insurance company. R. Nelson Nash, the founder of the Infinite Banking Concept, learned that those premiums can be subdivided into portions which pay the death benefit and portions contributing to the cash value. And the portion of the monthly premium which goes to each can be negotiated at the start, to effectively grow the cash value faster, so as to create a rapidly growing pool of money, which could be used to finance purchases, essentialLy creating a small personal bank to use for the life of the policy, which was designed to last his entire life.

Because the loan was secured by the cash value the farmer didn’t need to submit to a credit check or provide tax returns or paystubs. He simply requested a loan in writing and he could receive the money in 1-2 days. Sooner if he went to insurance office in person, that way same day service was possible.

The farmer used the cash value portion of his whole life policy as a financial instrument to finance his needs for purchases not unlike the way the modern individual uses financing from a bank to finance his purchases of things he needs every day. The farmer used this financing tool called cash value to finance the purchase of seeds and other essential equipment on a yearly basis while running his business, which was his farm. And this financial toll was an essential part of his financial ecosystem. The whole life insurance policy allowed him to function to various degrees as an individual financier, independently of the banking system because he provided his own financing for his daily needs

Then when the farmer died he left to his wife and children the knowledge of this financial system which allowed him to function as an individual independently of the banking system because he provided his own financing for his needs and he left to them a death benefit which allow them to purchase the farm and pay off his debts when he died.

Thus he fulfilled his responsibilities to his family by creating an independent financial system which basically financed his life and business and at the end of his life he made sure that his children were better off then he was financially by eliminating their main debt the mortgage on the farm, which was paid off by the death benefit of his whole life insurance policy.

These ideas and concepts were well known in America, but appear to have been lost in our transition from a largely agrarian or farm based country to an industrial or employed labor force country.

Ironically, the only part of this knowledge, which remained widely distributed in our culture was the association of dying with the phrase “bought the farm”. But it is totally stripped of its financial ramification and financial achievement. The current understanding of the phrase is simply that someone died.

Knowledge, power and freedom.
Free yourself.

✍️ By Shortsegments

Posted via Steemleo