Life Insurance Blog

March 30th, 2011
in Life Insurance,premium financing
Using a Life insurance policy to your extreme advantage will help you truly understand what infinite banking really is.  We all know there are two major strategies that can help us build wealth.
  • Individuals can increase the dollar amount of money you make by getting a better paying job
  • Or you can increase the amount of money you keep in your pocket.

The Infinite Banking Concept or Strategy is a system that helps both individuals and businesses change out money that would have been normally lost as a debt and put higher amounts of interest and taxes back into your circle of wealth building.

You must take a really close look at  the money you spend for an entire lifetime to finance their lifestyle.  The Infinite Banking Strategy can be used to purchase cars, boats, appliances, education, healthcare, and many other items that are necessary in our world.   Consider that you now have the ability to recapture the money lost to these purchases. Put that next to a funding vehicle that utilizes tax advantages through the IRS tax codes and get a guaranteed growth; That in a nutshell is the Infinite Banking Concept.  Please call today to get a more detailed proposal for this strategy.

in premium financing

Many individuals with a net worth of 5 million or more are most likely eligible for a Premium Financing Life Insurance Program.  Easily explained:  While most pay cash to fund their life insurance policy, when you premium finance life insurance, you will get a loan from a bank to pay the premiums.  The lender or bank is on the life insurance policy certificate and is repaid later on from the death benefit. This helps the purchaser to acquire an insurance policy without having use his immediate cash flow. The lender of the loan can either be collateralized by other assets of the purchaser or not.  If you do not decide to collateralize the loan, expenses will become greater. This strategy has become very popular these days…

In some instances these arrangements are sometimes referred to as “free insurance”, because of the arbitrage you make on the loan. The individual who took the loan to buy the life insurance  is hedging that the performance of the life insurance policy exceeds the lending rate of the bank. When  low interest rates come around like in the marketplace today, this is usually an easy hedge. If high interest rates are evident you have to look at the other value adds a premium financed policy gives you. 

Be sure to get with your life insurance advisor to see if you qualify for this amazing program…..  Read More here on Premium Financing.

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