Guaranteed

INFINITE BANKING GUARANTEES

A properly structured Infinite banking policy provides a few incredible guarantees.

— Guaranteed cash value growth

— Guaranteed death benefit

— Guaranteed compounding interest rate growth

Along with the above guarantees, you can also earn dividends. Although dividends are not guaranteed, the companies we recommend have paid dividends for the last 100 years, and in many cases much longer – that includes paying dividends through the years of the Great Depression and the Great Recession!

Your Account is not tied to the market. You get guaranteed compounding growth that is also liquid.

We cannot stress enough the importance of having your money stored in a safe environment, free from the ups and downs of the stock market or real estate market.

In a world obsessed with the stock market, it is important to have assets that are non correlated, i.e. not tied directly to the stock market, that do not move in lock step with the fluctuations of the market.

One great thing about your Infinite Banking policy is it is not tied to the stock market.

Safe Bucket

Rather, you are guaranteed cash value growth year over year, providing you with an excellent “safe bucket” of assets that can help insulate you from the ebbs and flows of the stock market.

Infinite Banking is a great way to create some stability in an otherwise unstable world by providing a safe bucket, a rock solid financial foundation, against the next inevitable market downturn.

IMPROVES CASH FLOW & LIQUIDITY

When you engage in the strategic use of  the infinite banking concept you improve your cash flow and liquidity.

To access your cash value, all you need to do is call your insurance company and ask for a check to be issued. You can usually receive a check within just a few days – no qualification – no evaluation – no hassle.

So, a huge benefit of infinite banking is that you can store your wealth in a liquid asset. And that asset provides true compound interest growth, in a tax favored environment. (More on this below)

PERSONAL FAMILY FINANCING

Another pro of Infinite banking is that you are in control (i.e. the owner and operator) of your own personal or family financing company. You are using the rules of the way a specially designed life insurance contract can be designed to use cash value accumulation that is available while you are still living! You become your own banker , or even the banker of others!

Becoming your own banker means you can:

— loan money out to yourself, others, entities, etc Infinite Possibilities

— charge interest on that loan,

— then you get paid interest back to you for the use of your money

— you recoup the interest, which

— you use to pay back your policy loan, and

— you then repeat the process ad infinitum.

Each time you loan your money out to either yourself, your family, your business, or whoever, you are charging interest.

As you recoup the money with interest, you are adding more money into your bank (policy) than you started with.

The result is that over your lifetime you have amassed wealth beyond what you ever believed was possible.

INFINITE BANKING WAREHOUSE

When you employ an infinite banking strategy you are placing your equity into a tax-advantaged Warehouse for later use. The cash in your Warehouse (your policy) is growing due to true compounding interest

It is true compound interest because you are never touching your actual principle, but instead are borrowing from the carrier’s general fund. That way your money in your Warehouse (your policy) is continually compounding. Thus "using" the same dollars twice! 

LEVERAGE & LEGACY BUILDING

With infinite banking the added bonus is the Life Insurance component. The life insurance death benefit is not the main focus when implementing the concept of infinite banking but it does provide a great benefit of life insurance - a tax free death benefit to your beneficiaries.

Having a lump sum, tax free death benefit provides peace of mind knowing that your loved ones are taken care of. Especially if you die young.

401K or IRA

For those that choose to fund a 401k plan or IRA, there is no death benefit. A beneficiary family gets the proceeds from the 401k or IRA as is, minus any income tax owed, which is taxed as ordinary income (the highest taxed type of income).

In contrast, with life insurance, the death benefit is tax free.

As an example, an individual may elect to pay $1,000 a month toward an Infinite banking policy. At the end of year one, they would have nearly $10,000 in cash value liquid and available. In addition, that money is growing tax free and if they die there is a significant tax free death benefit as part of the policy. And depending on the insured's age the death benefit is often way more than 10x the cash value

So the death benefit is there from day one, which is huge financial leverage dollar for dollar, when you consider you only put a fraction of money into the policy. Your IRA or 401k death benefit would be zero, because IRAs and 401ks have no death benefits.

Please note: You can also add a term life insurance rider to your Infinite banking policy in the early years to get additional death benefit protection for your family. Adding a term insurance rider is a great strategy to build cash value quickly, while also having a larger initial death benefit. When employing the infinite banking strategy our goal is to build high cash value ASAP.

TAX-ADVANTAGED POLICY GROWTH

Your infinite banking cash value accumulates tax free. And you can completely avoid ever paying taxes on your cash value growth when implementing the process of infinite banking correctly.

Taxes are the number one killer of wealth and your number one expense throughout your life.

A properly structured infinite banking policy can help you avoid taxes altogether versus having your money grow tax deferred in an IRA or 401K, only to be at the mercy of the government and whatever the tax rate currently is when it comes time to take your money out.

So, you may be wondering, how does a whole life insurance policy grow?

Dividends

One way your policy grows is through life insurance dividends. 

Participating life insurance provides an annual dividend payment, considered a return of premium for tax purposes, to its eligible policyholders.

Although not guaranteed, most top mutual insurance companies have paid a dividend every year for over 100 years.

So what happens is, you design the policy that the dividend goes back into your policy and buys even more death benefit, thus increasing your cash value as well.

TAX FREE LOANS

You are using money that has grown at around a guaranteed rate of 3.5-4% a year, plus dividends that add another potential 2-3% a year. That is a potential 5-6% yield that compounds year after year that you can use tax free via loans.

(Note: potential returns vary but when interest rates rise, your infinite banking policy dividends will most likely increase as well. At one time, dividends from whole life companies were double digits.)

And if you are not being taxed on your gains, it is similar to earning another 2-3% interest, depending on the tax bracket you fall into.

On a side note. Consider that normal stock market returns are taxed around 20% or more. That means if you earn $10,000, you will pay around $2,000 in taxes that year (maybe higher). If you earn $10,000 in your policy you will pay ZERO taxes, even though you have access to that money via collaterally assigned policy loans.

Think about what the long term implications of not being taxed on your entire cash value accumulation will be.

CREDITOR PROTECTION FOR CASH VALUE LIFE INSURANCE

There are many states that provide creditor protection for life insurance.

So, if you are faced with some financial strife, your cash value may be sheltered from creditors.

Additionally, if you are sued, your money in your policy may be protected from a judgment.

Consult your Tax Attorney or CPA for advice on your own unique situation.