10 Most Common Infinite Banking Questions In 10 Minutes

 Alright guys, I'm going to answer 10 infinite banking questions in less than 10 minutes the clock starts now and The first question that is asked is what is infinite banking infinite banking is essentially using an overfunded whole life insurance policy to save money in your money Will grow the rest of your life instead of going to a bank or paying cash for things you're borrowing against your policy to buy things Hopefully assets and not liabilities, but whatever assets or liabilities your money will continue to grow in your infinite banking policy And you'll get other benefits because your month you're you have permanent life insurance that has more than just the ability to grow your money So that's infinite banking is infinite banking a scam No, but it is sold is overhyped if the policy is not designed properly It can be a horrible thing and I would say majority of people that are pitching Life insurance beware and if anyone's pitching you life insurance as it like the best things in sliced bread or that it's an investment run because life insurance will never be Outperform good investments and it's just not how it's intended to be and so that's that's what I would say It's not a scam But a lot of people sell it in a scammy salesy way and if it's not designed properly, it's not gonna serve you well Question number three is infinite banking only for the rich people I There's people that disagree with what I'm about to say I think unless you can put an initial $10,000 into an overfunded life insurance policy or infinite banking you should not do it There are people that say hey, you can put a hundred dollars a month and all that stuff and that it's true There's certain fixed expenses that are the same for the hundred dollar a month versus the a lot more And so I've just found in the people that I've interacted with it's like a lot of times if you don't have an Initial 10,000 at least to put in it just it just doesn't end up Performing the way that you know a lot of people have expectations because they're like oh, I can use all my own bank and stuff And it just takes a while and the best thing that you can do is instead of focusing on infinite banking is make more money and Get more money that you can save once you can save in at least $10,000 initially Preferably ongoing then infinite banking is a great place to store your capital and use it It's again not an investment and there's pros and cons to what I just said but for for the vast majority of people that believe that they're their great Assess that it's an amazing strategy and so no so it's not just for rich people some people might say an initial $10,000 is means you're rich and then again Then I guess it means for rich people but like that's that's what that would be the cutoff So 80% or more of people that can't fund this properly. Yes, I would not say that infinite banking is for you I would I would recommend you By term insurance and save up money in a savings account and once that gets saved up into a you know You know six months of emergency then we could talk about potentially you know substituting infinite banking policy instead of your savings And especially if you have more than that I think infinite banking should be something that you should look at as a part of your portfolio Okay, I got seven minutes left Question number four what type of life insurance do I use for infinite banking? Whole life insurance is what I would 100% recommend if you're going to use your policy in borrow against it and as a foundational asset Whole life is the way to go. There are people that are saying you know I you well and there's pros and cons to I you all versus whole life and But what I will say is if you're looking at life insurance as a place as like a more of an investment a raw alternative I you also have some pros to it and if designed properly I think they could potentially outperform whole life notice my words potentially because I don't know There's a lot more levers and the I you all is definitely sold as the more sexy vehicle But as a result there's a lot more things that could blow up on it and in most cases you have a lot less cash value early on And so I would prefer to have more cash value more control less levers and variables that could go right and or or go wrong Especially since life insurance is not investment. So why would I want to you know Put a lot of things on the table or risk a lot of things for something that's not an investment That's just my two cents But technically if we're gonna use words infinite banking I think majority people would agree that if you're gonna use infinite banking you should use whole life There are people that say I you well is better. I think It is it is mistake But I'm not anti-I you well for everything and we can have another video breaking that down how many infinite banking policies can I own? I know someone that owns 39 infinite banking policies. I do not own 39 The really what what limits your ability to own policies on yourself is how much depth benefit you have You're you're worth so much economically and so the insurance company doesn't want you to have an incentive that makes you Worth more dead than alive But if you keep under the your human life value you can get a ton of small little policies And it's based off again the death benefit is the thing that is really determining how many how many policies you can have But you can have other Policies that aren't even on your life And so there are people that own tons of life insurance policies on kids business partners and whatnot And they just control the cash you just need some type of insurable interest But no technical rules to how many policies you can earn that's why when someone says I have multiple policies They usually start a policy reverse engineer for what they can save today and then as they're making more They they open up new policies and as long as they're not worth more dead than alive they can do that Number six how to take a loan from a life insurance policy you essentially bottle against the insurance policy And there's multiple different ways you could call in there's some companies that are more advanced You can take a loan online, but essentially is you put money into a policy you have the cash surrender value and you can borrow up to the cash Surrender value and so in the first couple of years It's less than what you've put in and then there's break even and then you can borrow against more than what you put in And you're not borrowing from your borrowing against and I wonder if that yeah, so one's gonna ask me about rates I'll wait to answer that question number seven. I use a policy to pay off my mortgage the answer is yes You can use policy for whatever you want I would highly discourage that and I don't think that would be a good use of your money Even if you could get a cheaper rate I would not want to give up control and liquidity of my money to put it into something where I could get a mortgage for 3 4 5 6% loan. I am not a huge proponent of Using a life insurance policy earring and banking to pay off your mortgage I when I have more time I can break down why that is Number eight do do I have to pay taxes when I borrow against my life insurance the answer is no You don't have to pay tax or income tax on what's considered alone That's one of the powerful things is when you take a loan. It's alone It's exempt from fraying income tax and so that's why you can have your cake and eat it too in a sense as your money King your money is in the policy giving you but benefits you also have access to it and you don't have to pay taxes Number nine. What are the interest rates? The interest rates that you're earning in the policy or anywhere from two and a half three percent Upwards to we have policies that earn 5% from a standpoint of intermerator return and so that's what you can earn and then when it comes to borrowing against We're looking at you know anywhere from you know mid-three's to high fives or sixes and anything in between I'm a fan of using a third party lender So what does that mean is I could usually get a cheaper access to money Because I'm using a bank to take a life insurance policy that's Pretty much like bulletproof has released a collateral got two minutes left number 10 How do I design this type of policy? What kind of insurance companies offer this? So if you're gonna use whole life insurance, which I would recommend for this You want to work with a mutual divin and paying life insurance company There are about 10 out there that you could use we we have access to all 10, but we use about five And you've got to work with someone that knows how to do that. So obviously I'm biased you could work with us There's also many other people out there that Can set this up and coach you throughout the way the most important thing is you want the policy to be set up properly This is super super important and then you want to work with a team that can coach you and make sure that there's ongoing support because this is kind of an Outside of the box way of thinking about money and you might have questions about like you know the following year I can put this much money into it should I and There's so many nuances of this and so want to work with the company that is mutual that That can allow you to set this up and then the real technical way that you need to design this because I have a whole minute left to explain this to you is You want to make the the the the base insurance premium as low as possible and you want to maximize what's called the paid up additions And different companies have different wordage for this but but whether you call it Pues or you just want to maximize the cash through other riders And sometimes you have to add what's called a term rider and into this mix to allow you to get as much cash a value But as little base premium as possible and any type of way of designing that is going to be good whether it's a really heavy front load Which we're we're a big fan like putting a lot of money up front and then maybe tapering that down Throughout the years or just doing a consistent cash flow throughout the time. I got 20 seconds left We think about money differently here a better wealth. This is my 10 rapid fire questions as really it's the infinite banking We love to hear your thoughts love to hear if you think I answered the questions too fast If you want me to have a follow up video on any one of these questions, please let me know and Please subscribe and share this content and appreciate you. Take care