While many people have now decided to become their own banker, there is more to it than meets the eye. That’s not to say you should steer clear from leveraging this concept since it offers numerous benefits. From improving cash flow and liquidity and creditor protection to personal family financing, you will never regret your decision after taking this route.
Either way, you should also be aware of the disadvantages set to come your way once you decide to become your own banker. Fortunately, that’s what this article is going to help you figure out today. Keep on reading to find out more.
For most people who are running on a tight budget, the infinite banking concept can at times prove to be cost prohibitive. Of course, even though there is no set minimum monthly payment to follow this concept; you ought to put around 10% of your income into your policy. The good news is that you can always look for additional money that is slipping through the cracks and enjoy the numerous benefits destined to come your way after deciding to become your own banker.
You Must Qualify
Just as is the case with any other life insurance policy, you need to be qualified for an infinite banking policy. Luckily enough, the whole life insurance is actually easier to qualify for when compared to term life. Actually, this is one of the main reasons why whole life insurance is favored for infinite banking as opposed to term life insurance.
Either way, there are some keys to life insurance underwriting that you must be fully of before you make up your mind to become your own banker. For instance, it pays to have options and choose an insurance company you are more likely to be approved with when applying for life insurance with health issues.
The Bottom Line
Even though there are some drawbacks to the infinite banking concept, this is not to say you should steer clear from using it. After all, it has more to offer than you might probably be thinking.