For those who have do not have life insurance or have never thought of it as a business opportunity are unfamiliar with the concept of infinite banking, which is the process of getting a loan which is the cash value of the policy. 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.
It is always important to have access to cash flow since you don’t know when an opportunity or emergency is going to arise and since most people do not have the cash lying around, it is where infinite banking comes; you will always have access to cash at any time. 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. Practicing infinite banking is important because it gives you control on when you can get the loan and what you can use it for; it is unlike other loans that require you to state the specific purpose of the money.
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. Infinite banking does not only give you access to the money you need when you need, but ensures the policy continues to grow at a steady rate annually.
Asset protection; when you buy life insurance, it is one of your biggest assets and you will be glad to know there are statutes put in place to protect it from the reach of creditors. In addition to growth, your life insurance policy will be paying you dividends too, which is a benefit of infinite banking. The guaranteed rates of return found within life insurance as well as the dividends will be paid to you on a tax-deferred basis. If you haven’t thought of infinite banking, these are some of the benefits you are missing out on.