The Infinite Banking Concept (IBC) is undoubtedly worth your attention. After all, it helps businesses and householdsbecome financially independent in almost no time. IBC was first discovered by R. Nelson Nash in the early 1980s, at a time when he was coping with high interest rates. This is after taking loans from commercial banks.
While thinking about the best route to follow, he thought about funding Whole Life Insurance policies with the aim of creating his own set of “banks.” By switching his financial needs from outside traditional financial lending institutions to his own resources, Nash could now take full control of his financial world.
You might wonder why this was even essential in the first place. Well, this was the ideal way fort Nash to attain peace of mind needed to recapture interest payments. To better appreciate the value of Infinite Banking, you should go out of your way and understand the different types of insurance available.
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Furthermore, you need to know the different terms that exist with life insurance. One such term is policy loans. With a Whole Life policy, the owner can build up equity over time effectively. This is as the cash surrender value increases. If at all you need the cash back but you’re not ready to surrender the option, then you can simply borrow money directly from the life insurance company.
In this case, the cash surrender value serves as your collateral on the loan. In short, you can obtain the financial assistance you need from an insurance company as long as you have built up one or more well-funded Whole Life policies. Keep in mind the Infinite Banking entails using policy loans to take control of the money flow in your life.
If at all you need financial assistance to buy a new car or invest in real estate, then you will not have to borrow from conventional lenders but instead take out a policy loan from a life insurance company. No wonder the infinite banking concept continues gaining traction in different parts of the world.
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.