What is Infinite Banking?
Infinite Banking is a financial strategy that allows individuals and businesses to create their own personal banking system. It's based on the concept of utilizing dividend-paying whole life insurance policies as a savings vehicle. The idea is that by building up cash value in the policy, you can borrow against it to finance your purchases or investments, instead of relying on traditional lenders.
How does it work?
With Infinite Banking, you purchase a dividend-paying whole life insurance policy from a reputable insurance company. As you make premium payments, a portion of that money goes towards the policy's cash value. Over time, the cash value grows tax-free and can be used to borrow against.
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When you need to make a large purchase, you can borrow against the cash value of the policy. The policy acts as collateral for the loan, so you don't need to go through a traditional lender or worry about a credit check. The interest on the loan goes back into the policy, which helps it grow even more.
The benefits of Infinite Banking
Infinite Banking offers numerous benefits, including:
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Control
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You're in control of your own banking system, instead of relying on traditional banks or lenders.
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Flexibility
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You can use the cash value of your policy to finance anything you want, from a down payment on a house to a business investment.
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Tax advantages
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The cash value grows tax-free, and the loans you take out are typically tax-free as well.
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Legacy building
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If you pass away, your policy's death benefit can be passed on to your heirs tax-free, providing a valuable legacy for your loved ones.
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How to get Started with Infinite Banking
To get started with Infinite Banking, you'll need to find a reputable insurance company, that's were Think Insured comes in ;-) and then we help you construct a dividend-paying whole life insurance policy. We recommend working with an experienced our licensed advisors who can help guide you through the process and ensure that you're getting the best policy for your needs.
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Once you have your policy in place, you can start building up the cash value and using it to finance your purchases and investments. Your financial advisor can help you determine the best borrowing strategy and make sure you're using the policy to its full potential.
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