#INFINITE BANKING POLICIES FREE#

#INFINITE BANKING POLICIES FREE#

* Some IUL policies do offer a no loss guarantee and tax free accumulation of cash values so this can be considered on a case by case comparison.

Although IUL policies may offer higher returns in booming market years, they also can experience losses, even with a floor of zero *. One advantage that whole life insurance for infinite banking is that these policies consistently offer tax free accumulation through the payment of dividends. Variable universal life allows for individual stock fund investments and may only be sold by someone with a securities license. Usually, policy owners are offered a maximum rate of return (the cap) in a booming market as well as a floor against losses if markets head south. Universal life insurance which is offered in a few different forms depending upon how the assets are invested and returns are offered to policy holders.įor example, indexed universal life offers policy holders a return of cash based upon a number of market indexes (such as the S&P 500 index) that may be selected by the policy owner. In a mutual life insurance company, whole life dividends paid are often tax advantaged because they are categorized as a return of premiums overpaid by the policy holders rather than as income. Whole life insurance policies offer a guaranteed return or accrual of cash value as well as a non-guaranteed projected rate of return in the form of dividends. Whole life insurance is also commonly referred to as cash value life insurance and is arguably the most conservative and reliable type of life insurance, but perhaps less flexible than its counterpart. Policies that would be categorized as permanent would include the spectrum of whole life insurance AND universal life insurance policies. Although term life has its uses, it has often been referred to as renting a death benefit.

Non-direct recognition (or direct recognition with solid history)Ī permanent life insurance policy vs a term life insurance policy would be a policy that offers a permanent death benefit when all premiums are paid vs a term life policy that only provides a temporary death benefit for period of years.

Policy designed to accrue cash value (rather than maximize death benefit).

A few examples are: life insurance for children, second to die life insurance, limited pay life insurance and indexed universal life insurance.įor purposes of this discussion, when we talk about cash value life insurance for infinite banking, let’s make the following assumptions about the ideal pool of companies and policy options that support the steps to creating your own personal bank using life insurance: There are many types of life insurance that may be suitable for a variety of purposes. Of course, I’m NOT talking about just ANY permanent insurance because all permanent life insurance policies are notcreated equal. Best Permanent Life Insurance Policy for Infinite Banking Typically, when our clients do a side by side comparison with other options for building a reserve of ready cash, the option of purchasing a permanent life Insurance for infinite banking will prevail.

The top choice for setting up your own infinite banking system for wealth building would have a few characteristics as follows:īy referring to the above characteristics, you ideally need a place to put your money for guaranteed growth that offers all of the above. You see, when is comes to a permanent life insurance policy for infinite banking, some options are more ideal for setting up a personal banking system than others.

This unique approach to designing a permanent life insurance policy for infinite banking is the focus of this article. However, for the average person who wants to set up personal banking system, there is a way to design permanent life insurance for infinite banking. You may also remember us noting that the infinite banking concept has nothing to do with any particular insurance or financial vehicle.

You may remember from our discussion about the velocity of money, when we wrote that infinite banking is already happening all over the world under the radar.

Infinite banking policies