The Infinite Banking Concept is a thought process that teaches one how to take control of the banking function in their life. Anyone who is an IBC authorized practitioner will show you how to implement this with dividend paying whole life insurance. You can perform the banking function with other financial vehicles though, so why don’t we use something else?
In an earlier blog, How Do I Access the Money in My Policy, we explained 3 ways of accessing the money in your policy. They included a sad way, a dumb way, and a smart way. The smart way involves taking policy loans, and we will explain in depth how these work here.
Each of these products have a place for clients. We will be comparing these two products just on a dollar cost basis over someone’s life.
What does buy term and invest the difference mean? When you hear this phrase, it refers to the difference between the cost of insurance for a whole life policy and a term life policy, for the same amount of death benefit protection. The idea is then to “invest the difference” in cost, to receive a higher Rate of Return than you can get with a whole life policy.
Once you start investigating the Infinite Banking Concept, it’s common to start telling coworkers, friends and family about what you’re planning to implement in your life. If they lack understanding of whole life insurance, it’s very likely the concept could pass right over their head without them seeing it. This blog is meant to help you understand what they’re missing if you’re doubting your research and the Infinite Banking Concept.
Finance can be a complicated subject for individuals. When you add a business into the picture things become more complex. It’s easy to find yourself second guessing your strategy and can’t help but wonder if you’re on the right path. “Is there something that can make what I’m already doing even better?” Here are 5 questions you should answer.