Life insurance banking is one of the safest investments you can make in 2019. Become the banker is designed to help you make the leap into financial safety. Even though it may appeal to more affluent investors, life insurance banking is for everyone who has long term liquidity needs, over and above a desire for a permanent death benefit.
Here’s the pitch, in a nutshell:
Over the course of their lives, most people pay oodles of interest to creditors on all manner of loans, from mortgages to cars to credit cards to college loans. This lost interest — and the interest on that interest — represents a tremendous drain on individual wealth.
If, instead, you aggressively saved money within a certain type of life insurance policy, you could fund these purchases from that policy — and pay the policy back, rather than the bank. While there are some technical issues with the phrasing, this is the functional equivalent of paying yourself for the loan, with interest. Thus, you are retaining the interest within the cash value of your own life insurance policy, rather than paying off the bank. The claim is that rather than enriching the bank, your payments go back to enriching yourself or your heirs, when the policy pays off at your death.
Meanwhile, you also get all the other benefits of whole life insurance:
- A guaranteed tax-free death benefit for your beneficiaries (important!)
- Cash value that grows at a guaranteed minimum crediting rate, with no risk of market loss.
- Tax-free growth
- Tax-free withdrawals
- Tax-free loans
- Annual dividend payments, provided your carrier is a mutual insurance company, owned by policyholders.