The Best Advice About I’ve Ever Written
If you have life insurance, then you probably know you can get its cash value as tax-free, lower interest loan, which is what is referred to as infinite banking. 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. If you have never thought of infinite banking, apart from just getting tax-free, lower interest loans, there is an array of excellent benefits you are missing out on. If you have life insurance or have never thought about infinite banking, below are important reasons to consider it.
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. One incredible benefit of infinite banking is that it entails a lot more than just accessing the money you want because you can also lend other people the money and charge an interest.
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. Once you switch to infinite banking and become your own bank, there is no need to depend on banks for money whenever you need it. This freedom is also exhibited in your ability to use the loan you get against the cash flow of your policy for anything.
Most of the time you are borrowing money against the cash value of life insurance policy, you are only touching the compound interest it has accumulated and not the principle because of its equity. 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.
Even if creditors are coming after your assets, they will be unable to touch your funds in life insurance policy thanks to infinite banking and statutes that protect that money. 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. Exploring infinite banking does not only enable you to be your own banker but also the advantages highlighted above.