How to be a bank on your own? In this Expert Insight Interview, Sarry Ibrahim discusses making sure that your money is somewhere safe and accessible with infinite banking. Sarry Ibrahim runs the Financial Asset Protection company and hosts Thinking Like a Bank podcast.
The interview discusses:
- What is infinite banking?
- Do people know about it?
- How to set it up?
- Any limitations?
Infinite banking means utilizing your Whole life insurance and using it as your source of financing. The Whole life insurance has cash value because it has a saving account to grow, receive dividends, compound interest, etc. It satisfies your leverage needs because you can borrow money while using it. It also eliminates the liquidity issues that many small and medium business owners deal with, allowing them to get business funding without stressful bank applications.
This concept is still half known to the public. Some people did hear or read something about it, while others are not aware of its existence. The reason might be because media, banks, and other large institutions heavily promote the stock market and bank accounts. And since this is an option to grow your wealth “outside of the Wall Street,” it is a less-known option.
If you are interested in this option, you should first get familiar with the concept online. The second thing is to schedule a call with the company for consultations. Next comes financial analysis, in which the company gets to know your current financial situation and future goals and objectives. You will also learn about how the policy works regarding funding, borrowing, paying off, etc. Then, it gets submitted to the underwriting, and if it gets approved, you can start funding it. The whole process takes approximately six months.
Through the whole process, the company makes sure that you have the support and necessary information. Also, every six months, your policy gets reviewed to ensure that everything is on the right track.
A good thing about infinite banking is that it does not have any limitations. The process has to go through medical underwriting being a little riskier for older people, but it is still achievable. That is where the financial analysis step comes in to address all the factors. In that case, an elderly can be an owner of the policy, but a grandkid, kid, business partner, somebody else will be insured.
Moreover, how much money you put into your account depends solely on you. The more money you put, the more you will have in the future on a tax-favored basis. Returns on infinite banking are conservative, four to six percent annually. However, this is an excellent savings and risk mitigation strategy that allows tax benefits and the use of other investments.
John is the Amazon bestselling author of Winning the Battle for Sales: Lessons on Closing Every Deal from the World’s Greatest Military Victories and Social Upheaval: How to Win at Social Selling. A globally acknowledged Sales & Marketing thought leader, speaker, and strategist. He is CSMO at Pipeliner CRM. In his spare time, John is an avid Martial Artist