What Is Infinite Banking?
Imagine if you could be your own banker, where you have control over your money, can access it whenever you need, and also grow it over time. The Infinite Banking Concept is all about becoming your own banker through a specially designed life insurance policy, often a whole life policy.
How Does it Work?
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Setting Up a Policy: You start by getting a whole life insurance policy from a mutual insurance company.
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Cash Value: Over time, your policy builds cash value. This is like your own personal bank account within the policy.
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Borrowing: You can borrow money from your cash value for any reason, whether it's for a major purchase, an emergency, or even investments.
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Interest: When you borrow from your policy, you pay yourself back with interest. This means you recapture the interest that would otherwise go to a traditional bank or lender.
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Growth: Your policy's cash value continues to grow over time, earning you compound interest.
Why is it Valuable?
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Control: With Infinite Banking, you have control over your money. You decide when and how to access it, which can be a powerful financial tool.
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Tax Advantages: The growth within your policy is tax-advantaged, meaning you don't pay taxes on the gains.
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Legacy Building: You can use this strategy to create a financial legacy for your family. The wealth you build can be passed down to future generations.
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Financial Security: It offers a source of funds during emergencies or retirement, providing financial security.
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Interest Recapture: When you pay interest back to your policy, it stays in your family's pocket instead of going to a traditional bank.
Infinite Banking is valuable because it empowers you to take control of your finances, grow your wealth, and secure your financial future. It's about turning the traditional banking relationship on its head and putting the power of banking back into your hands.