If you’ve done your homework, then you might already know about infinite banking, a concept that was first popularized by Nelson Nash. For those who might not know what we are talking about, it is merely the process by which an individual becomes his or her own banker. In his book “Becoming Your Own Banker,” Nash explains the use of whole life insurance policies in distributing dividends.
Actually, infinite banking brings along a host of benefits that most people do not probably know about. And that’s precisely what this quick guide will help you uncover today. Keep reading to find out more!
Improvement in Cash Flow
This is undeniably one of the greatest benefits you are destined to enjoy after making up your mind to take advantage of the infinite banking concept. Keep in mind the value of whole life insurance policy that acts as collateral is far more liquid when compared to equity in real estate. Of course, this is because you can take the loan far more quickly while the individual can access cash in hand faster and at a lower interest rate.
Safeguard Your Future
You might not know this but an individual’s cash flow can be vital especially when dealing with financial hardships or unforeseen expenses. An insurance policy loan can also prove beneficial for individuals who no longer have to work due to health complications, loss of a job or even death in the family. Since whole life insurance policies are not tied down to the impulses of the stock market, they are always going to retain their worth.
Perfect for People with No Financial Conviction
Infinite banking concept is not for individuals who lackfinancial conviction or the ability to think clearly. To reap maximum benefits from this concept, you need to be financially sound and more than willing to make long-term financial decisions. The secret lies in thinking about the factors that determine whether you can make it after opting to become your own banker.
There you have it, some of the most notable benefits that accompany the use of the infinite banking concept. So, why not give it a try today and see how things will transpire.
