The Infinite Banking Concept® can be used for any of the following scenarios.
Leveraging your cash value from your policy you can do any or all of the following*
*Note: loans against cash value and any accrued interest will reduce the death benefit dollar for dollar. Being what Nelson Nash would call "an honest banker" is a recommendation, though not a requirement, that all policy loans be paid back as soon as feasible.
Entrepreneurs can tap into their policy's cash value to start a new business or invest in growing their existing business. This is particularly useful for covering startup costs where flexible repayment terms are needed until business cash flows increase or there becomes a desire for expanding operations without seeking external funding.
Investors can leverage the cash value in their life insurance policies as a down payment on property or to finance property investments providing an alternative to traditional mortgage methods and potentially improving return on investment. In many instances it can also be used as a source of reserves.
Parents can use the cash value from their whole life insurance policies to help pay for their children’s education expenses. This allows them to avoid or reduce reliance on student loans with potentially high interest rates and better yet allows for flexible repayment terms.
The cash value in a whole life insurance policy can be accessed during retirement as a potential tax-free source of income supplementing pensions, social security, and other retirement accounts while also helping manage retirement expenses. This is achievable via policy loans and dividend distributions up to the cost basis of the policy.
Individuals can use their policy's cash value to pay off high-interest debts, such as credit card debt or other consumer debts, consolidating their liabilities into a lower interest rate option with flexible terms, acceleration of debt reduction and improving overall financial stability.
In nearly every state, in whole or in part, cash value in whole life insurance and death benefits are protected from creditors and attorney's making judgements or claims against a person's assets making it a safe haven for your assets in times of financial adversity.
Whole life insurance is a cornerstone of estate planning allowing for the efficient transfer of wealth to the next generation and helping to manage estate taxes and other transition-related expenses.
Whole life insurance can serve as a financial safety net. The cash value can be accessed in times of unexpected expenses like medical bills or urgent home repairs providing liquidity without the drawbacks of traditional loans.
Whole life insurance can provide income protection for both short and long term disabilities as well as chronic illness. Critical illness insurance covers a specific, predefined set of medical conditions. Disability income insurance provides benefits to insureds who are disabled as a result of injury or illness and cannot perform normal work duties.