The Infinite Banking Concept Defined

Everyone wants to feel like they are in control of their own money. Using banks to manage your money means that you might never really feel in control. Your money is out of sight, and banks can use it for their own gains when it’s not in your hand. The Infinite Banking Concept is a way to create and generate your own wealth so that you don’t have to rely on banks to protect your finances. But what is the infinite banking concept and how can it work for you?

What Is the Infinite Banking Concept (IBC)?

What is an infinite banking concept?The infinite banking concept is a process that is designed to allow you to become your own banker. This is done using whole life insurance policies, which can be used as dividend-paying assets, and creative ways to utilize liquid cash value. The methods included in the infinite banking concept can include creating your own tax-free lending system to finance large purchases, generating personal wealth, and using IBC practices for business financing.

How Does It Work? How Is IBC Different from Normal Banking?

The infinite banking concept was first taught by Nelson Nash, who wrote best-selling books such as ‘Become Your Own Banker’. The idea is to grow liquid cash value using a whole life insurance policy, while also borrowing against this insurance policy. This enables you to benefit from some of the same functions as patronizing a bank, except that you get to cut out the middleman and do your own “banking”. The basic concept is fairly simple. Just pay your insurance premiums to keep your policy up-to-date, and get in touch with your insurance provider when you want to take out a loan against the equity you have grown.

Rather than being a single banking product, or a series of products, IBC is more of a process. It’s a process that you can use to achieve your financial goals without having to rely on the whims of bankers. Whole life insurance policies cover the policyholder’s entire life, rather than only paying out to beneficiaries after their death, as with a term life insurance policy. This means that they can provide a valuable income stream that increases in equity.

What Are the Benefits of an IBC?

The infinite banking concept has multiple benefits and can help to solve a number of problems. Anyone who values the ideals of freedom and justice may find themselves drawn to infinite banking thanks to the advantages that it can provide. Using banks to manage your finances can feel restrictive and like you’re never really in control. From keeping your money in a conventional savings account to relying on banks to approve loan applications, it can prevent you from growing your wealth in the way that you want to.

Infinite banking can change this, putting you in charge. Using your whole life insurance policy to take out a loan is often less risky and more affordable compared to using a bank. The insurance provider is much less likely to want to know what the loan is for, whereas a bank will almost always ask you why you want a loan. Insurance providers will simply accept that you are borrowing against your own money.

When you borrow money from your insurance policy, it will keep growing. As long as you keep paying your premiums, you can ensure your wealth is growing, unlike other products that you could borrow against. Keeping your money in banks can limit the growth of your money. Insurance policies give you much better value for your money.

What Is Used to Create an IBC?

Starting the IBC process begins with a whole life insurance policy. The benefit of this type of insurance policy is that you can borrow from it during your life. Additionally, you may wish to look at the option of using a PMA (private membership association) to help you manage your wealth and finances. This is an excellent option for anyone with a business or who is interested in starting a business. Both a PMA and infinite banking can help you to gain more privacy where your finances are concerned.

How the Freedom People Can Help

The Freedom People can help you with setting up an Express Trust and infinite banking. Our experts will help you to get started with these concepts and discuss how they can help you. Get in touch with us via our online form or contact us through our online chat to ask any questions that you might have. Check out our services on PMAs as well!