For those who have do not have life insurance or have never thought of it as a business opportunity are unfamiliar with the concept of infinite banking, which is the process of getting a loan which is the cash value of the policy. By getting a tax-free, lower interest loan which is the cash value of your life insurance policy, you have money to build your empire from scratch and even pass your wealth onto your children. Getting the loan you need and avoiding to deal with banks and brokers in the process are just some of the incredible benefits of infinite banking that you will, enjoy. Keep reading to familiarize yourself with some of the amazing advantages associated with infinite banking.
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. The liquidity of your life insurance policy gives you freedom; you are no longer tied down by banks and other financial institutions. To qualify for a loan from a bank, you must state the specific purpose for the loan which makes the system a bit rigid but with infinite banking you can use for business or personal need nobody cares.
Apart from just buying life insurance policy and getting access to its cash value whenever you need, it will also be earning an interest throughout the time, which leads to growth. Even after borrowing money against the cash value of your life insurance policy, it will still be accruing an interest at a steady rate throughout the entire time and you earn even more if the policy is paying dividends too.
Practicing infinite banking is important since it guarantees protection of your assets, and one of them is your life insurance policy. If you have life insurance policy, there is a good chance it is being managed by a mutual company, which will be paying you dividends. The guaranteed rates of return found within life insurance as well as the dividends will be paid to you on a tax-deferred basis. If you haven’t thought of infinite banking, these are some of the benefits you are missing out on.