https://www.youtube.com/watch?v=RnzDMisQ5go

Infinite Banking has the edge over other funding methods because of the strategic use of whole life policy loans.If you’re new to the concept, let’s rewind to make sure we’re on the same page. Infinite Banking is a strategy of building up cash value inside of a specially designed whole life insurance policy.  The cash value is a place to store cash that provides safety (your cash value won’t drop in value), growth (with guaranteed interest, plus non-guaranteed dividends), and liquidity (contractual access to use your money.) 

When you want to access your cash value, rather than depleting your cash value by using it directly, you convert it to cash by borrowing against it.  That means you don’t use your cash value; you collateralize it and use OPM (other people’s money) instead.

So, all of your cash value continues growing and compounding, even with an outstanding loan.  This is why you can earn a return on the same money in two places at the same time.

Find out more about life insurance policy loans and why we use them here.

Today, we’ll dig into the process of how to take a life insurance loan and pay it back.  We’ll de-mystify policy loans by talking you through the steps you’d take to move capital into usable cash in your bank account.  And you’ll gain the confidence to use your policy to the fullest capacity to maximize all of your money.

Table of contentsWhere Do Whole Life Policy Loans Fit into the Cash Flow System?Whole Life Insurance’s Three Rates of ReturnThe Reason to Use a Whole Life Policy Loan: ControlThe Process of Taking and Repaying Whole Life Policy LoansHow Do You Request a Loan?What Happens to Cash Value with an Outstanding Loan?How Does Interest Accrue During a Whole Life Policy Loan?How Do You Repay a Policy Loan?What If You Don’t Pay Off a Policy Loan?Why Earning Interest Is Better Than Paying Yourself InterestStart Using Whole Life Policy Loans for Infinite Banking Today

Where Do Whole Life Policy Loans Fit into the Cash Flow System?

Loans are one small part of Privatized Banking, which is, itself, another step in a bigger journey to time and money freedom. 

That’s why we’ve developed the 3-step Business Owner's Cash Flow System as your roadmap to go from just surviving, to a life of significance, purpose, and financial freedom. 

The first stage is the foundation.  You first keep more of the money you make by fixing money leaks, becoming more efficient and profitable. 

Then, you protect your money with insurance and legal protection and Privatized Banking. 

Finally, you put your money to work, increasing your income with cash-flowing assets.

Whole Life Insurance’s Three Rates of Return

The power of whole life insurance comes from the three distinct returns it gives you: an internal return, an external return, and an eternal return.

The internal return is the growth of your money through interest and dividends inside the policy.

The external return is the growth on the outside investments when you put your cash value to work in other assets with policy loans, a process known as Infinite Banking.

And the eternal return is the death benefit that provides an ongoing legacy to your loved ones.

The Reason to Use a Whole Life Policy Loan: Control

You capitalize on the external returns by using policy loans as a funding source.

Using a whole life insurance loan boils down to one thing: control. 

You have control because you have the guaranteed privilege of accessing cash up to the amount of your available cash value.  That means you don’t need to meet any terms or qualifications.  You don’t need to prove you can repay.  There’s no credit check or scrutiny on what you’re using the money for.

So, it’s not a wait-and-see if you’ll get the money.  If you request the loan, it’s yours.

Another layer of your control comes from the contractual right to control the terms of how and when you pay bac...