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. 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. In addition to cutting out banks and brokers out of the deal, infinite banking has other incredible benefits. The following are some of the excellent benefits of using infinite banking.
Cash flow; in case of an abrupt occurrence that requires your immediate attention, you will access the cash you need to solve the problem immediately through infinite banking, whether it is an investment opportunity or emergency. 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.
Perhaps the biggest benefit of practicing infinite banking is liquidity; the cash value of your life insurance policy is liquid and you can access it at any time for any purpose without having to qualify or meeting a particular criterion. Banks are a good source of money when you need, however, you will feel beholden and unable to make your own decisions which is why infinite banking offers you a way out. 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.
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. Most life insurance policies usually continue earning an interest rate of about four percent annually; infinite banking ensures continued growth of your banking even after you have borrowed money against its cash value.
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. Finally, you will enjoy tax benefits with infinite banking that you don’t enjoy with other loans. If you haven’t thought of infinite banking, these are some of the benefits you are missing out on.