5 Reasons Why Infinite Banking Excels

Will Rogers was quoted as saying “I’m not so much concerned with the return on capital as I am with the return of my capital.”

In the United States we are inundated with investing our money to achieve a return. From the illusion of retirement savings, that are largely invested in “the market”, to any number of investment ideas; the focus is always on making a return on our investment. I refer back to Mr. Roger’s statement on his capital, have we not learned from the dot com bubble, the housing bubble and now the pandemic bubble? Are we not collectively taking on a great deal of risk by chasing high returns?

Albert Einstein was quoted as saying “Compound interest is the eight wonder of the world. He who understands it, earns it. He who doesn’t, pays it.”

I want to ask you the reader a question to ponder.

Are you seeking high returns to increase the amount of money you can make to one day use?

Now let us paint a picture about capital (money) and the use of it throughout our lifetime.

Imagine there exists a way for you to store your capital in a system that is safe, always increases in value and you control it. This system also allows you to use your capital without depleting it while using it. The system takes Albert Einstein’s quote and places the word “Uninterrupted” at the beginning of his quote. The flexibility built within the system favors you in good times and bad.

Would you be interested to learn about such a system?

The system is Infinite Banking and it is uplifting individuals and families who desire to move in the direction of financial independence on their terms.

We will now explore 5 reasons why Infinite Banking excels.

Reason 1: Safety

The financial tool that is used to perform the Infinite Banking process is a participating whole life insurance contract issued by a mutual insurance company. The contract is private and guaranteed. Mutual life insurance companies have survived and thrived for the benefit of their policy owners through the great depression, numerous recessions, financial crisis's and they will weather the ongoing pandemic. They are the definition of safety when it comes to a place to store your capital.

Reason 2: Guaranteed Growth

A whole life insurance contract is private and contractually guaranteed to go up in value, it will never go down in value. As long as a policy owner performs their end of the obligation (premium payments), the policy owner enjoys an ever increasing pool of capital, that they control the use of. Guarantees can be anywhere from 3–4%. The key factor is that the growth is guaranteed per the contract, to grow uninterrupted until the day the policy owner dies. How is this possible? The cash value of the insurance contract is the net present value of the death benefit. In layman's terms every day that passes you are one day closer to your death and a part of the cost of the death benefit comes back to the policy owner in the form of cash value.

Reason 3: Liquidity

As a policy owner you are first in line when it comes to access to the cash value that is in your policy. This may seem like not a big deal when times are good financially, but when they turn bad, the value of liquidity shines bright. The tightening of access to credit (liquidity), of companies lending money is showing up throughout the economy today. Credit limits on credit cards are being lowered, down payments on mortgages are being increased and access to money for the many people that are now unemployed is being limited. As per the contract of the policy owner, access to capital is guaranteed and will not be revised based on the economic conditions in the United States.

Reason 4: Leverage

The leverage benefit of the cash value in the policy of an owner is a powerful tool that exists in no other financial product out there. A policy loan (leverage) taken out “against” the cash value of the owner’s policy, does not interrupt the guaranteed growth in the policy. Yes there is a cost of capital (interest rate on the loan), however when factored in with the contractual guaranteed growth of the policy, it is negligible. Another tailwind to this scenario is that by taking out a policy loan from a company that you as a policy owner are a part of, you participate in the profitability of the company. Excess profits flow to policy owners in the form of yearly dividends.

Reason 5: Flexibility

The flexibility a policy owner enjoys is useful when times are good and provides peace of mind for a policy owner when times are bad. When borrowing from a 3rd party lender monthly payments are almost always due each and every month. As a policy owner if you need access to capital and are not sure when you can pay it back, the policy provides the flexibility to pay the loan back on the policy owner’s terms. If a policy owner has to skip a few months of paying towards a policy loan, they can do so without calling the insurance company. This phenomenon is possible due to the fact that the loan is collateralized by the death benefit. In layman’s terms the insurance company will be paid back on any outstanding loans when the policy owner dies. This is a simple mathematical calculation of death benefit amount minus any outstanding policy loans.

Each of the 5 reasons has an overarching theme of control on the part of the policy owner. Complete control of your capital, in a favorable financial tool, is a tailwind that can carry you towards financial freedom. Yes it does take time, but the time will pass anyway, so why not look into Infinite Banking and how it can improve your financial life.