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. Infinite banking means you are using your own money to build and live a prosperous life without losing your life insurance policy. 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. 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.
When you have life insurance policy, its cash value is liquid with infinite banking which means you get access to money which is the value of your policy at any time. The liquidity of your life insurance policy gives you freedom; you are no longer tied down by banks and other financial institutions. To qualify for a loan from a bank, you must state the specific purpose for the loan which makes the system a bit rigid but with infinite banking you can use for business or personal need nobody cares.
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.
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. Tax-free withdrawals and tax-free policy loans are benefits only available to you with infinite banking. Discussed above are just a few of the benefits you can take advantage of with infinite banking.