If you have life insurance, then you probably know you can get its cash value as tax-free, lower interest loan, which is what is referred to as infinite banking. Infinite banking means you are using your own money to build and live a prosperous life without losing your life insurance policy. In addition to cutting out banks and brokers out of the deal, infinite banking has other incredible benefits. If you have life insurance or have never thought about infinite banking, below are important reasons to consider it.
Given that emergencies can arise at any time, it is always good to be prepared with some cash which allows you to react quickly and decisively, which you have access to if you are using infinite banking. If you have friends or business partners who are in need of money, you can be their name if you are practicing infinite banking; infinite banking allows you to borrow money from your life insurance policy and lend it to others at an interest rate, making it a good wealth building strategy.
Compared to borrowing from a bank or other financial institutions, infinite banking gives you instant access to the cash value of your life insurance policy without any qualifications needed; you can access the money at any time for any purpose while the cash-value continue to earn the guaranteed rate of return on the full cash-value. Once you switch to infinite banking and become your own bank, there is no need to depend on banks for money whenever you need it. Practicing infinite banking is important because it gives you control on when you can get the loan and what you can use it for; it is unlike other loans that require you to state the specific purpose of the money.
Infinite banking is important because of equity; the money you are investing in your policy is growing because of compound interest. Infinite banking does not only give you access to the money you need when you need, but ensures the policy continues to grow at a steady rate annually.
Practicing infinite banking is important since it guarantees protection of your assets, and one of them is your life insurance policy. If you are not a part of infinite banking, you are not only missing out on the annual interest rate and growth of your policy but dividends paid by the company managing your policy. Finally, you will enjoy tax benefits with infinite banking that you don’t enjoy with other loans. Exploring infinite banking does not only enable you to be your own banker but also the advantages highlighted above.