When deciding whether or not Infinite Banking is for you, it is important to understand exactly what Infinite Banking is and how it can be applied to your specific situation. “Infinite Banking” is the popularized system that utilizes whole life insurance structured in a way that it maximizes its living benefits in conjunction with the death benefit.
Keeping it Simple
Fundamentally, Infinite banking is a very basic concept based on banking principles so as to reduce costs associated with financing and borrowing (don’t forget the added benefits Infinite Banking can have – Liquidity, Safety, Growth and Tax Benefits). With Infinite Banking the policy owner can take the position of lender and borrower (or just lender) and in essence remove the added expense of 3rd party lenders or potentially be the 3rd party lender. The result is potentially more money in your pocket. Although the concept is basic on the surface, there is much to understand when learning about and considering Infinite Banking. Structuring an Infinite Banking policy takes expertise and understanding of how to appropriately set up the policy to meet your individual needs, wants and goals.
Things to consider:
- Why Infinite Banking?
- Utilization
- Immediate needs
- How can it fit into other activities (IE Real Estate, etc)?
- Long-term contributions and growth
- Death Benefit
- Future tax implications
In structuring a policy there is no cookie cutter way to accomplish and meet the goals of every client. There are many tools and techniques that are put into practice when building a policy for the specific needs of a client. When considering a professional for Infinite Banking seek out one that will explain how and why the properly structured policy will meet your goals. You should also consider this relationship to be long-term. When considering Infinite Banking you will want to seek out someone you can rely on and who has the experience and expertise to offer Infinite Banking advice and an open ear.
Lastly, do your research. A great starting point is to read the book Nelson Nash wrote that coined the term “Infinite Banking” and popularized the concept – Becoming Your Own Banker. At Paradigm Life we will be the first to admit that Infinite Banking isn’t for everyone, but it is something that everyone should learn about and consider.
For more Information about Infinite Banking download our free article. You can also contact us at 1-800-870-8670 or by e-mail at info@paradigmlstg.wpengine.com.
