You are finally ready to leverage the infinite banking concept to safeguard your financial future for the better. There is nothing wrong with taking this approach as it is among the best ways to accrue wealth without the hassle. This concept lets you become your own bank by leveraging the value of a dividend-paying permanent life insurance policy.
Being your own banker can be a useful tool on your path to financial freedom. If this concept appeals to you, there are some steps to consider to get started. And that’s what this quick guide will help you uncover today.
Well, you should consider starting young while premiums are lower. Since your premium is locked in for the life of the whole life policy, the earlier you get in the better. It doesn’t stop at that since you need to choose a reputable insurer. Keep in mind infinite banking is a lifelong process and you’re better off counting on an insurance company you are confident will be around for the long haul.
Whole life insurance policies pay you dividends on your investment. But if you decide to borrow against their value, the insurer might only pay on what’s in the account. Things tend to be different with a non-direct recognition policy as it pays you dividends on the full cash value, even if you’ve borrowed against it.
We can never conclude without mentioning the fact that you should choose a policy with a cash value rider that benefits your loved ones. This is because the life insurance company in most policies will absorb the cash value upon your death, and your beneficiary will be paid the policy’s death benefit. To avoid losing the cash value you’ve built over a lifetime, be sure to add a rider on your policy that gives the beneficiary both the cash value and face value.
These are some of the things you need to know before leveraging the infinite banking concept. Take it upon yourself to do a bit of research to get a better understanding of what is destined to come your way.
Stella Tennant has helped several global brands, which get heard across the digital space, through result driven content & social media marketing efforts. Studying blockchains and cryptocurrencies makes her hopeful of a free and decentralized future.