Like any other financial strategies, everyone would also consider some advantages to the infinite banking concept. Before getting into the use of infinite banking concept, its important that you have a clear understanding of what it is.
Get to know some of its benefits and ways you can get the best out of it. With that, you will be in a position to know what you’re dealing with. If this concept is new to you, we have compiled some infinite banking advantages that will guide you through. Read on below!
Guaranteed Loan Provision
Well, you can borrow against your brokerage account or real estate but none of these are guaranteed to be available to you when you may need them the most. If the sky is falling and buying opportunities abound, stocks often lose value eroding your borrowing power. In addition, none of these assets are guaranteed to keep growing while you are borrowing for infinite banking concept.
This is exactly why the amount you can borrow from these sources is far less than the 95% loan to value ratio allowed with an infinite banking life insurance. You can dive deeper to understand how infinite banking policy loans differ from the other types of loans.
Guaranteed Growth In Addition To Dividends
Whole life insurance provides a positive growth rate as well as an interest-sensitive annual dividend. However, the oldest and most solvent true mutual companies can boast they have paid a dividend for the past years.
A couple of the oldest banks paid whole life dividends. This really affected most people who stored their cash because they lost a huge amount of money. Therefore, for positive growth its important you consider infinite banking concept.
Final Thoughts
There are numerous benefits that come along with infinite banking concept. For many reasons, people strongly believe in choosing the biggest and most solventmutual companies for your infinite banking strategy. With all of the above advantages, you have the reason to choose infinite banking as your perfect savings platform. Keep reading more about infinite banking and more of its benefits.