Benefits of Infinite Banking
Infinite banking can be referred to as the process through which a person becomes owns banker. This is a method that most people are adopting. The banking is done in terms of an insurance policy. The insurance policy will be used to cover a person’s life and will not be used to help the family out in case of death. The policy will therefore generate some sort of dividends that you will be paid. This means that it will be generating income. Every time that you buy a life insurance policy that is a business that you are starting. You can use the money that you save to create your net worth. You can also be in a position to pass on the wealth that you have to your children. Once you have decided to do the infinite banking, there are several benefits that you are going to acquire.
One of the advantages that you will get from infinite banking is the tax benefits. This kind of banking allows a death benefit that is not taxed. I will also give tax deferred growth, free policy loans as well as withdrawals that are tax free. This is a benefit that you not find when dealing with other loans.
Another advantage that you will get is liquidity. The cash value of the policy that you have is liquid. You are therefore allowed to access it every time you need it. it does not restrict you from taking your money despite the course. To be in position to use the money you will not need to qualify, rather, you can take it any time and se it for any course. Another benefit is that you will get dividends. This is income that you don’t have to work on in order to get it.
Another advantage you get from infinite banking is the fact that you will get asset protection. There are many states that has laws that tends to protect the money that is in the life insurance policies. This means that in case you have a loan that you have not paid, the creditors will not be in a position to reach the money that you have saved in the life insurance policy.
You will also achieve growth when you decide to use the infinite banking. There are cases when you borrow money against the cash value of the policy. However, the policy continues to accrue interest at a rate of 4% p.a. you will also have cash flow. This means that you will have money in your hands always. Therefore, if you need to use the money for specific reasons, you will do exactly that. This will give you financial freedom without having to rely on other means of income.
If you want to be part of infinite banking, do a research first. This will help you get an idea of what you are engaging in. when you know the benefit, you can be able to explain to other people what it means to be part of infinite banking.