Reduce dependence on commercial banking, and eliminate usurious lending rates to become your own banker, financing your life and business. Leave an inheritance for your children and grandchildren if you wish.
A custom-designed plan that meets your financial needs and objectives, and best of all, that you control.
Successful results in this process require:
A commitment of self-discipline and study
A knowledgable consultant to help you design and implement your plan
A skilled broker to connect you to the best company and product for your needs and objectives
Book your initial 1-Hr consultation to get started or to learn more. The $125 goes towards package purchase.
“The truth is you finance everything you buy. You either pay interest to someone else or you give up interest you could have earned.
Everyone should be in two businesses—the one in which you make your living, and the other should be the banking business that finances whatever you do for a living of the two businesses, banking is the most important. Businesses come and go—but banking is eternal.”
~R. Nelson Nash
Becoming your own banker is a process that uses a dividend-paying whole life insurance policy to access your policy’s cash value by borrowing from yourself — and paying yourself back — at any time. The process was created by R. Nelson Nash in the 1980's and he coined it the "Infinite Banking Concept".
When properly designed, whole life insurance policies uniquely function as dividend paying assets through accrued equity. The infinite part of the concept comes from the many creative ways one can utilize this liquid cash value, such as:
Creating one’s own tax-free lending system to finance large purchases (i.e. a car or a home), independently of commercial banks and lenders
Generating personal wealth (as with stocks or cryptocurrencies, but without volatility and with the added utility of protection for one’s beneficiaries)
Using these practices for business financing
The equity, or cash value(s) specific to whole life insurance policies serve as collateral for all policy loans. So long as premiums are current, the policyholder simply calls the insurance company and requests a loan against their equity. The insurer on the phone won’t ask what the loan will be used for, what the income of the borrower (i.e. policyholder) is, what other assets the person might have to serve as collateral, or in what timeframe the person intends to pay back the loan. The checks for these loans are often sent out as soon as the next business day.
In contrast to term life insurance products, which cover only the beneficiaries of the policyholder in the event of their death, whole life insurance covers an individual’s entire life. When structured properly, whole life policies generate a unique income stream that increases the equity in the policy over time. Infinite banking is a methodology of redeploying your cash flow and liquidity through a whole life insurance policy to create continuous compounding from these funds even if they’re borrowed. Major expenses, family emergencies, and strategic investments are funded by borrowing against an infinite banking policy designed with specific riders to enhance cash value.
When you repay the policy loan, you make the same regular payment you would have made to a lender if you had financed the purchase conventionally, but instead of making it to the lender, you make it into your own policy - you pay yourself back and charge yourself an interest rate comparable to current rates. By doing so you continue to earn interest and dividends on the cash value of your policy. The cash value of your policy continues to grow. You finance yourself, and you make money off yourself through the finance. Think of it this way: you can either go to a lender and finance the car, or you can finance it yourself. If you finance it yourself the conventional way, you do it by a one-lump sum payment with cash. But that cash is now tied up in the car. What if you could still have access to that one-lump sum, but keep it earning for you and simply make the payments to yourself like you would have to the lender?
The following article is written by Cynthia Bowman and was taken from https://www.nasdaq.com/articles/infinite-banking%3A-what-is-it-and-how-does-it-work Infinite banking is a way to become your own bank, by taking out loans against a permanent life insurance policy. Imagine never having to worry about a credit check, high-interest payments or applying for a car or student loan ever again — this could be a reality via infinite banking. Being your own banker can be a useful tool on your path to financial freedom. Take a closer look at how the infinite banking concept works. The Infinite banking concept revolves around a whole life insurance policy. Whole life insurance, versus term life insurance, is a permanent life insurance policy. This means the policy is guaranteed for a lifetime as long as the premiums are paid on time. In comparison, a term life insurance policy only lasts for a certain time period, such as 20 years, or up to a certain age, such as 65. Premiums for a whole life insurance policy are higher than for a term life policy. Your monthly premium payments go toward three components:
Fees and operational costs
The portion that covers the death benefit
The cash value portion held in a savings-type account
Part of each premium payment is funneled into the cash value savings portion. This is a unique feature of a whole life insurance policy because you can borrow against this growing, tax-deferred cash value portion to fund major life expenses such as buying a home or paying for college. The cash value of your life insurance policy will enable you to become your own banker when you follow the principles of infinite banking.
How Much Money Is Needed for Infinite Banking? The amount you need to start infinite banking will depend on your life insurance policy provider. Age may affect the cost of monthly premiums, so it’s often best to start as early as possible. Since you can only borrow against the cash value savings portion, a large amount of money has to be contributed to the insurance policy over time before borrowing against it makes sense. Because of this, infinite banking may not always be a good solution for the average American. According to the Federal Reserve, 9.58% of Americans’ monthly disposable income currently goes toward debt repayment. Infinite banking focuses on redirecting that money back to yourself through privatized banking. Here are the advantages of IBC:
You may borrow for anything you’d like, with no explanations.
There are no credit checks required to borrow.
Dividends, loans and withdrawals are tax-free.
The policy’s cash value continues to increase over the policy’s lifetime, even while you’re borrowing.
You can contribute additional money toward your policy value.
You can lend money from the cash value to family or loved ones.
Interest rates are generally lower than for a traditional loan.
You can pay yourself back at your own pace.
You’re creating a financial source by funding your future loans while building an inheritance for your beneficiaries in the form of a policy death benefit.
Disadvantages of Infinite Banking
Infinite banking requires a long-term strategy and plenty of discipline. The insurer won’t set regularly scheduled payments on your behalf but will expect the loan to be repaid. It’s up to you to be financially responsible when you’re your banker. This carries some disadvantages:
Monthly premiums can be high.
Unless you make advance arrangements, the life insurance company will absorb the cash value upon your death, and the beneficiary will receive the death benefit.
If you don’t pay the loan back, the amount will be deducted from the death benefit.
Qualifying for a new whole life insurance policy may be difficult for older individuals or those with poor health.
The amount paid toward a permanent life insurance policy and the cash value balance could grow more over time in other investments such as an index fund.
How Do I Start Infinite Banking? If the concept of funding yourself appeals to you, here are some steps to consider getting started. Here’s how to set up an infinite banking system using a whole-life policy:
Start Young, While Premiums Are Lower Like all life insurance products, premiums are lower when you’re younger. Because your premium is locked in for the life of the whole life policy, the earlier you get in, the better.
Choose a Reputable Insurer Infinite banking is a lifelong process, so make sure you choose from reputable life insurance companies you’re confident will be around for the long haul.
Choose a Non-direct Recognition Policy Whole life insurance policies pay you dividends on your investment. But if you’re borrowing against their value, the insurer might only pay dividends on what’s in the account. A non-direct recognition policy pays you dividends on the full cash value, even if you’ve borrowed against it.
Choose a Policy with a Cash Value Rider That Benefits Your Loved Ones In most policies, the life insurance company will absorb the cash value upon your death, and your beneficiary will be paid the death benefit. To avoid losing the cash value you’ve built over a lifetime, add a rider on your policy that gives the beneficiary both the cash value and face value.
Add a Paid-Up Addition Rider Paying your monthly premiums could take a decade or more to build a significant cash value you can borrow against. Adding the paid-up-addition insurance rider to your policy will let you pay more into your cash value to grow it faster.
Go Ahead and Borrow When you’re ready to borrow, your loan will come from your policy’s cash value, which is used as collateral. Just call up your insurer and request funding. Unlike a traditional loan, there’s no need to explain why you need the money, and the loan won’t affect your credit. The loan isn’t recognized by the IRS as income, so it’s tax-free.
Pay Yourself Back You will be charged interest, though it’s likely lower than interest on a bank loan. Although there are no required monthly payments, you are expected to repay the loan. Take as long as you’d like to pay it back — but be aware that borrowing reduces the death benefit until it’s repaid in full.
IBC could be a powerful personal finance tool for higher-net-worth individuals who could benefit from tax savings and want the freedom to borrow money quickly. Individuals can borrow from their whole life insurance policy without a credit check or lengthy underwriting process. Although it’s a great resource for funding major expenses like a college education or real estate, covering these types of loans requires a large investment into the policy’s cash value over time.
Advice A quality permanent life insurance policy and a long-term financial plan are needed for infinite banking to work. Start early — even if you don’t think you need to borrow until years later. The younger you buy whole life insurance, the cheaper it is. Getting coverage early also gives you more time to build cash value before you hit major milestones such as buying a house or paying for a dependent’s college education.
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