Each single year, people are spending huge amounts of money on financed debt for larger purchases such as homes, cars and other investments. Over time, the interest paid to the financial institutions, which lent out the money adds up to hundreds of thousands of dollars. This is what is keeping people from saving. As a matter of fact, it has been revealed that for every single dollar you make 40 cents is yours while the rest (60 percent) goes to the government (taxation) or is spent settling money borrowed from banks or any other financial institution.

Come to think of it, is it possible to recapture the principle and interest being paid to banks and other financial institutions and instead save it? Yes it is! According to the infinite banking concept, you can bank on yourself; break the cycle of paying out money to someone else and instead pay it to yourself.

The infinite banking concept and how it works

In embracing the infinite banking concept, you will be able to get out of debt faster without spending more money, redirect the flow of interest back to you instead of a bank while at the same time leaving a legacy of wealth to your heirs and next of kin. But first of all you’ll have to invest in a whole life policy for a period of five to seven years. In short, the infinite banking concept allows you to leverage dividend-paying whole life insurance policies to create a personal banking-fund.

The principle behind infinite banking is very simple; you use your whole life insurance policy to finance all your investments (mortgage, car etc) rather than the traditional method which involves approaching a bank or any other financial institution and getting a loan which you will have to re-pay later with some interest.

Based on the actual banking system, infinite banking (banking on yourself) is beneficial such as its efficiency and tax friendliness – You would want your money to earn interest so that the value keeps up with the level of inflation, won’t you? Well with whole life insurance, tax is deferred implying that the money builds up faster.

The sure way to bank on yourself is by buying a whole life insurance policy. This does not mean that the infinite banking concept advocates superiority of whole life insurance over term-life policies. On the contrary, the philosophy emphasizes on the importance of the policy holder having access to the money he/she has paid into the policy while they are alive rather than having the insurance provider paying a lump sum to the next-of-kin when the policy holder dies.
Robert Trasolini, 778 991 9073
Website http://safepacific.com/blog/