cash flow banking method

Cash Flow Banking With Whole Life Insurance

What is Cash Flow Banking?

Cash flow banking is a concept that allows you to capture the opportunity cost of your dollars. It lets you be your own bank and earn interest on yourself. This is most commonly achieved using dividend-paying whole life insurance. Whole life insurance is used because it’s safe and financially strategic.

Here’s why.

Cash Flow Banking with Whole Life Insurance

Most people want to take care of their family after they die, so they buy term life insurance. One of the downsides to term life insurance is that you miss out on on the living benefits of a whole life insurance policy.

Whole life insurance gets a bad reputation because its premiums are higher than term life insurance. The truth is, any type of insurance that isn’t properly structured can be expensive and a waste of money. With a Wealth Maximization Account, your premiums strictly represent how much you would like to cash flow bank with.

A Wealth Maximization Account is like a savings account that provides liquidity, a steady rate of return, security, and tax-benefits. It’s an asset based off of whole life insurance and is key to cash flow banking.

The wealthy have used whole life insurance policies and cash flow banking for centuries. Famous businessmen like Walt Disney and Ray Kroc both supplemented their entrepreneurial visions with their whole life policy.

Becoming Your Own Bank

Mutually owned life insurance companies use a policy owner’s death benefit as collateral for policy loans. This allows you to receive a cash flow, or infinitely bankinstead of relying on a central bank for loans.

Central banks lend your wealth to other individuals and charge an interest rate. This is how banks make money. They earn interest on your bank account.

Cash flow banking gives YOU the profit from the interest rate when you borrow against your policy. You can use policy loans to finance anything of your choosing—home buying, business start-ups, cars, college. Anything that you would typically turn to a bank for, you turn to the cash value in your policy for.

Cash flow banking provides you with flexibility and the opportunity to build lasting wealth. For help becoming your own bank, schedule a free consultation with a Wealth Strategist. We can structure a whole life insurance policy to meet your financial goals, with premiums that fit your budget.

Read: Powerful Cash Management Strategies

Watch: Preparing for Your Complete Retirement Journey

Listen: Exploring Mutual Insurance Dividends