Life Insurance As A Bank

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Family Banking Strategy

It seems like the name of this principle changes once a month. You may have heard it described as a perpetual wealth technique, family banking, or circle of wealth. Regardless of what name it's called, unlimited banking is pitched as a secret way to develop wealth that just abundant people learn about.

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You, the insurance policy holder, placed cash into an entire life insurance coverage plan with paying premiums and acquiring paid-up additions.

Permanent Life Insurance Infinite Banking

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The entire principle of "financial on yourself" just works because you can "bank" on yourself by taking car loans from the plan (the arrowhead in the chart above going from whole life insurance coverage back to the insurance policy holder). There are 2 different kinds of lendings the insurance coverage business might use, either straight recognition or non-direct acknowledgment.