Banking with Whole Life Insurance gives the average American the opportunity to be in control of their personal economy.
Our current free market economy has been seen as “under attack” from many individuals in the U.S. – news reporters, politicians, lobbyists and business owners. Regardless of how the talking points on the topic persuade an audience, it is reasonable to say that there has been enough economic change in the last 40 years to at least cause any individual to raise an eyebrow about where the free market is headed.
The economy began seriously changing in the 70s with the Nixon Administration deciding to completely move the dollar into a fiat status. Once the dollar became fiat and completely unbacked by a secure commodity, like gold, money’s value (or devalue) was gauged solely by inflation.
Evidence of the economic shift after the 70’s continued. The following decades fiercely took the U.S. from the late 80s business boom to the housing market collapse and Great Recession in the late 2000’s. The inbetween span of 20 years was dedicated to popularizing the 401(k)s; which most people depleted as a response to the real estate crises and market decline in 2008.
The economy can be volatile, and even promises from financial advisors or the government might help to bring solace; there is still a chance for things to go wrong. So, how do you protect yourself financially from economic decisions that you can’t control?
Your Money inside a Whole Life Policy minimizes Economic Risk
Money-conscious individuals are always looking for strategies that help their money fight against the variables of the economy. Banking with Whole Life Insurance is a strategy which safeguards anyone’s dollar from economic risk.
For instance, instead of investing your money into an account with a fluctuating yield rate, the money inside your policy always earns a steady rate of return. In addition to a steady return rate, with a whole life policy, you can borrow against yourself by using your policy’s death benefit as collateral. This means that an individual can at any time, and for any reason, borrow from the insurance company with a policy-loan. When you borrow from yourself, the money inside your policy still earns interest.
This type of circular banking is what makes your financing dollars become privatized, as well as maximizes the use of your money. A Whole Life Policy keeps your principal completely safe as you leverage your cash value with a policy loan. Many people use their cash value to reinvest in other performing assets knowing that their original principal will still be earning interest.
‘Banking’ with Life Insurance
The idea of using a whole life insurance policy to bank is known as the Infinite Banking Concept: coined by Austrian Economist, Nelson Nash.
Many people are afraid to purchase large ticket items like college tuition, family events, start-up businesses, or home buying; and with the unexpected fluctuations of our economy, the trepidation is of no surprise. The benefit of being your own bank is what provides economic security. Your money inside of a life insurance policy is even safer than it would be inside of a bank – since your life insurance policy will not be subject to the risk of bank failure.
Banking with a Whole Life policy has helped many individuals gain control of their wealth and money, by not being subject to market volatility or economic downturn. In a way, your privatized bank is a version of your own free market economy.
Read: Banking on Long Term Success
Watch: Infinite Banking Basics