Policyholders borrow against their life insurance policies rather than taking out loans from traditional lenders. Contributing 10% of your income toward the cash value is common. The term “infinite banking” has been making waves on social media, but it’s not a new concept.
How does Nash's infinite banking concept work?
In Nash’s infinite banking concept (IBC), the cash surrender value (s) of whole life insurance policies act as collateral for a loan. The individual simply needs to call the insurance company and ask to take out a policy loan.
How much money do I need to start infinite banking?
The amount you need to start infinite banking will depend on your life insurance policy provider. Age may affect the cost of monthly premiums, so it’s often best to start as early as possible.
What are the pros and cons of infinite banking?
One of the biggest benefits or pros of infinite banking is the ability to earn continuous compounding on borrowed funds. Having a liquid dollar wear multiple hats with your wealth-building efforts while continuing to compound safely within your infinite banking Whole Life policy is by far the most powerful component of IBC.
