09/21/2022
WHAT IS INFINITE BANKING?
The Infinite Banking Concept (or IBC) is the process by which one becomes their own banker.
Becoming Your Own Banker, using Fixed Indexed Universal Life Policies (FIUL) as an example,uniquely function as Indexed paying assets through potential accrued equity.
There are many creative ways one can utilize this potential liquid cash value, such as:
•Creating one’s own tax free lending system to finance large purchases (i.e. a car or a home), independently of commercial banks and lenders
•Generating personal wealth (as with stocks or cryptocurrencies, but without volatility and with the added utility of protection for one’s beneficiaries)
•Using these practices for business financing
How the Infinite Banking Concept Works
1. The equity, or account value(s) specific to Indexed Life Insurance Policies serve as collateral for all policy loans.
2. So long as premiums are current, the policyholder simply calls the insurance company and requests a loan against their equity.
3. The insurer on the phone won’t ask what the loan will be used for, what the income of the borrower (i.e. policyholder) is, what other assets the person might have to serve as collateral, or in what timeframe the person intends to pay back the loan.
4. The checks for these loans are often sent out as soon as the next business day.
5. Since your assets will remain in your policy as collateral for the loan, it has the potential to earn indexed interest.
In some cases the potential interest could be more than the loan interest charged by the insurance company!
In contrast to term life insurance products, which cover only the beneficiaries of the policyholder in the event of their death, Indexed Life Insurance covers an individual’s entire life, if sufficient premiums are paid.
When structured properly, Indexed Universal Life Insurance Policies can potentially generate a unique income stream that increases the equity in the policy over time.
So, we pose the simple question, “Do you feel liberated or justified by operating within the constraints of commercial lines of credit?”
