Are you planning to have multiple IBC policies, and don't know where to start?

If you’re already a few years into using the Infinite Banking Concept, you’ve seen and experienced the power of storing cash in a whole life policy. You’re earning interest and dividends, have exceptional compounding power, and guaranteed access to use your money. You’re also watching the death benefit increase.

https://www.youtube.com/watch?v=nugZZ1HcrY8

Now you want to store more cash. It’s time to think about how to use all your policies well and maximize their capacity.

Today, we’re continuing the conversation in our series about how to take your Infinite Banking to the next level. In the last episodes, we dug into how to maximize your current Infinite Banking Policy. Then, we talked about insuring other family members, like children and grandkids. Now, we’ll talk about managing multiple policies.

So if you want to hear about what to do after your whole life insurance policy is already working… tune in now!

The Problem of Information

“The internet has allowed us to be drowning in information while starving for wisdom.” 

That’s the unfortunate truth of the internet—everything seems like it is generated for clicks. That's why we are striving to help impart wisdom so that you can make the best decisions for your family today. The purpose of today's content is to help you take ACTION. Because too much information can cause inaction. 

Storing Capital

Everybody has a need to store capital. And there are many financial institutions that allow you to store capital: banks, insurance companies, Wall Street, pension plans, and your own home. The real work is in evaluating where your capital should go, in order to do what you want it to do.

Remember: what is the purpose of your money? 

Once you’ve identified what your money should do—evaluating the WHERE becomes simpler. And while there’s no perfect solution, there are products with flexibility and control. Primarily, cash value insurance offers you liquidity, safety, growth, and certainty. More importantly, it can offer you flexibility and control.

It’s important that when your future is uncertain, you have something that IS certain. You may not know how much money you’ll have in the future, or what your job will be, or how your family will grow. But by having cash value life insurance policies, you WILL know that you have money you can use strategically. You won’t lose it if the stock market crashes, it will continue to grow, and you don’t need permission to access it. 

How do you have the best-case scenario no matter what happens? 

The Purpose of Your Policy

If you do not believe in the death benefit, and you’re only worried about the cash value, then you should just keep your money in the bank. Rodney Mogen, who has joined us on The Money Advantage before, has expressed this sentiment. And we fully agree. While it’s easy to talk about the benefits of the cash value in terms of infinite banking, it’s harder to talk about the death benefit. 

You can likely imagine why, as talking about death is often uncomfortable. We don’t like to think about our own deaths, let alone the deaths of our loved ones. But it’s an essential component of life insurance that helps protect the people you love from loss of income. 

So if you’re only interested in life insurance because of the cash value, and you’re not invested in the protection component, how likely are you to maintain your policy?

It becomes easier to manage a system of policies when you are also thinking of the generational impact. In other words, the income protection from loss of life, and the transfer of wealth that occurs therein.

Why Take a Policy Loan?

It’s simple: control. It’s popular now to use your cash value as collateral, in order to take a lower interest rate. Why pay the life insurance company 5% when you can pay the bank 3.5%? The answer is, it depends!