Infinite Banking

How Does Infinite Banking Work?

To start, you will need to purchase a permanent cash value life insurance policy from a reputable insurance company. The policy should have a cash value component, which means that a portion of the premium payments will be invested and accumulate over time. As the policy matures, the cash value grows, creating a source of funds that you
can borrow against.
‍
When you need to borrow money, you can request a loan from the insurance company, using your policy's cash value as collateral. The loan will accrue interest, which you will pay back to the insurance company over time. However, instead of paying interest to a bank or other financial institution, you're paying yourself back, which means that the interest payments are going back into your policy's cash value.

Be Your Own Banker

Benefits of Infinite Banking

There are several benefits to implementing Infinite Banking with Life Insurance:

Is Infinite Banking For Me?

It's important to note that Infinite Banking is not a one-size-fits-all solution, and it may not be the best option for everyone. The strategy requires a long-term commitment, and it's essential to work with a knowledgeable financial professional to ensure that you're making the most of your policy's cash value and borrowing wisely.
‍
If you're interested in learning more about Infinite Banking life insurance, contact us and ask to be connected with our network of Infinite Banking specialists.

#1 - Control

The Infinite Banking concept provides a source of financing that is entirely under your control, which means you don't have to rely on banks or other financial institutions for loans. You have the ability to borrow when you need to and pay yourself back with interest, which means that you are in complete control of the terms and conditions of the loan.

#2 - Tax Advantages

Cash value in a permanent insurance policy grow tax-free, which means that you don't have to pay taxes on the cash value growth. When you borrow against the policy, the loan is not considered taxable income, which means that you don't have to pay taxes on the borrowed funds.

#3 - Wealth Creation

Leveraging a strategy like the Infinite Banking system can help you create generational wealth. By using your policy's cash value to fund other wise investments, you can create a source of passive income that can be passed down to future generations. When you borrow against your policy, you're not reducing the death benefit, which means that your beneficiaries will receive the full amount of the policy when you pass away, minus any outstanding loans from the policy.