What is Infinite Banking?
Infinite Banking is not a policy but a concept that was created by R. Nelson Nash back in the 1980's. Yet, cash value whole life has been used by the wealthy and banks for over 100 years! There is no better asset to build generational wealth.
IBC or the Infinite Banking Concept is the process of becoming your own bank. We teach people how to set up a High Cash Value, dividend paying Whole Life Policy with a Mutually Owned company. You are now a partner with the insurance company receiving a guaranteed return and dividend for your money to always grow and compound. On top of that, you have living benefits like; chronic & critical illness and a ton of other options available. You also have a death benefit that increases as your cash value increases.
Cash value whole life insurance is the best product out there for guaranteed compound interest to grow your money, protect yourself and family all at the same time.
How does Infinite Banking work?
Everyday people go to work, pay bills, spend money and put money into their savings. To become your own bank, you don't have to spend anymore money. You just have to make one change in your process and most importantly your thinking. When you put your hard earned dollars in a traditional bank, its only crediting you less than a 1/2% on average.
Instead of putting your money in the bank or savings account, put it in your OWN BANK inside of a cash value whole life policy. Guaranteed on average 5% uninterrupted compounding growth, access and liquidity of your money. Safe from creditors, garnishments and debts unlike your traditional bank.
When you take your money out of a traditional bank, that money is gone forever. Not earning any interest, no more buying power. It's completely different inside of your own Infinite Bank. Once you start putting money in your bank and your cash value grows, you can take money out via a policy loan but your money is still compounding at the original amount! It never left! You're just borrowing from your death benefit in the policy, allowing you control of your money and make your money work twice as hard.
What can Infinite Banking be used for?
Infinite Banking literally has "infinite" possibilities. Use IBC to pay off debts years faster, boost your credit, buying power and mindset. This goes for credit cards, personal loans, car or boat loans.
Learn how to actually make money on every car you'll ever buy. Instead of taking a loan from the bank, where you have to qualify for the loan on their terms, take it from your own personal bank. No more worrying about current or past credit issues any more. Pay yourself back like you would the bank, but at the end you'll have your car and all of your money back!
The long term and popular choice is investing in Real Estate. Cash value whole life is NOT an investment product on its own but is perfect to grow your real estate portfolio. Whether it's a fix & flip or rental property, the money in the cash value ( Your Bank ) can be used to fund these properties while still earning guaranteed compounding interest. Many wealthier people will actually use their policy to lend out money to other investors. So they are earning the guaranteed interest in their policy and earning 10-15% on the loan just like the bank!
These are just a few examples of what is possible when you have the control and security of your own bank.
Can an IUL be used for Infinite Banking?
Contrary to what Social Media says, NO YOU CANNOT. IUL's buy call options in the stock market, which goes up and down as everyone knows. It also has annual renewable term, meaning the cost of insurance goes up every year. There are no guarantees or control within an IUL. There are fees, participation rates, caps and surrender charges as well.
So imagine when the cash value in an IUL grows, you take out policy loans for the IBC concept and the market drops. You have all of the costs of the policy still coming out and on top of that the cost of the interest of the loan! You can lose a big chunk of money very quickly.
The most dangerous part is when people try to use this for retirement purposes. Taking out large sums of money every year for retirement income when the cost of the insurance is at its highest point and you're not contributing to premiums anymore. Add on to that, the down years in the market and BOOM, your policy will lapse, and any money earned from the interest will now be taxable.