What is Infinite Banking? Let’s Review Infinite Banking – Become Your Own Private Bank
Infinite banking is a method in which an individual becomes his or her own banker. The infinite banking concept was created by Nelson Nash, Doug Andrews, and Don Blanton. In Nash’s book, “Becoming Your Own Banker,” Nash shows how to use of whole life insurance and/or Index universal life policies that distribute dividends. In owning such policies everyday people dictate the cash flow in their lives by borrowing from their selves instead of taking loans from banks or lenders for loans.
Infinite Banking
Digging Deeper into the Infinite Banking Concept
In Nash’s infinite concept (IBC), the cash surrender value(s) of whole life insurance policies act as collateral for a loan. The individual simply calls the insurance company to take out a policy loan.
The policy is eligible to pay out dividends, it therefore generates a form of income that increases the cash value of the policy over an extended period of time.
As soon as the policy is approved & active, it has value and can be borrowed against. As such that individual can take money out of the policy as a loan ( the policy serves as collateral) to use for handling irregular or significant expenses that occur.
It is not for everyone, but can provide excellent liquidity in times of need.
For other information on how to create cashflow. Please read Jeff Lerner’s E-Book The Millionaire Shortcut
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