Infinite banking is the process of using the cash value of your life insurance policy for tax-free lower interest loans which you can invest in other thing. It is said every time you buy life insurance policy you are staring a business scratch which is due to the cash value of the policy which you have within your reach and is available to you at any time. 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. This freedom is also exhibited in your ability to use the loan you get against the cash flow of your policy for anything.
Infinite banking is important because of equity; the money you are investing in your policy is growing because of compound interest. 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.
Asset protection; when you buy life insurance, it is one of your biggest assets and you will be glad to know there are statutes put in place to protect it from the reach of creditors. In addition to growth, your life insurance policy will be paying you dividends too, which is a benefit of infinite banking. The guaranteed rates of return found within life insurance as well as the dividends will be paid to you on a tax-deferred basis. Exploring infinite banking does not only enable you to be your own banker but also the advantages highlighted above.