Here are some good reasons/circumstances where “Becoming Your Own Banker” may help you achieve your financial goals: That being said, never ever underestimate the power of owning and leveraging high cash value life insurance to become your own banker The Power of High Cash Value Life Insurance
If you have questions about the validity of that statement, study Jeff Bezos, the founder of Amazon, and find out why he believes so strongly in free cash flow. Free cash flow is far more critical to creating wealth than purchasing all the life insurance in the world. Making sure you can earn more money than what you have borrowed is called creating free cash flow this is important if you want to become your own banker. “Borrowing from a life insurance policy only makes sense if the rate the insurance company is going to charge you will be lower than what you would have had to pay somebody else to borrow the same amount of money.”Īnd by the way, whenever you borrow money always make sure that you can make more money than what you have to pay back for the loan, and if you can’t…don’t borrow the money. So contemplate the following statement very carefully, “How can raising the interest rate on the money you have to pay back to somebody else, even the life insurance company, ever be a good thing?” Here’s where things get interesting… This is why we have so many people wondering if it’s a scam to be your own banker with this strategy. It baffles my mind how many people buy into some of the “become the banker” promotions. Many life insurance agents who have heard about “Becoming Your Own Banker” (aka the Infinite Banking Concept) are using poor logic as they turn and use these concepts to sell high cash value life insurance just to earn a higher commission. However, over time, the concept of becoming your own banker has been misused by certain insurance agents looking to profit off of some customers’ lack of financial understanding. “Becoming Your Own Banker” is about leveraging the infinite banking concept to increase cash value. The theory of “Becoming Your Own Banker” was never based on individuals freely borrowing from their life insurance policy without proper knowledge of interest and loans. Here’s an easy guide with 3 things you can do to become wealthier and become the banker in your life. Even people who were “set for life” are running out of money in retirement. Many people are losing money with typical financial planning. Here’s an easy guide with 3 things you can do to become wealthier.