Infinite banking is the practice of overfunding a permanent life insurance policy so you can borrow against its cash value. It’s an alternative to taking out a traditional loan as a funding source.
Infinite banking comes with several advantages, including easy access to funds for emergencies, flexible loan terms and potential tax savings. However, it’s a long-term strategy that requires careful planning to reap the benefits. We recommend consulting a trusted financial advisor before making any decision to start infinite banking.
Infinite banking works by taking out a life insurance policy with a cash value
component, which can then be accessed through loans or withdrawals. When you choose to take a policy loan from your life insurance policy, you will pay simple interest on the money you loaned from your policy.
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