Infinite Banking Simplified: A Beginner's Class | Safe, Liquid, Tax Free Area to Build Wealth

Contact us: [email protected] Website: https://www.alphacrusaders.com/ What is infinite banking? Infinite Banking (IBC) is a financial strategy that utilizes a high cash value whole life insurance policy as a source of savings, investment, borrowing, and re-investment into additional assets. Here are the key basic aspects of Infinite Banking we walk through: 1. Infinite Banking (IBC) is a financial concept that utilizes a high cash value whole life insurance policy from a mutual company. This means that instead of using traditional savings and investment strategies, the policyholder uses their life insurance policy as a source of savings, borrowing, & re-investment into assets (if they choose). 2. The basic premise is to pay premiums into a whole life insurance policy, which builds up a cash value over time. This cash value can then be accessed through policy loans, which are essentially loans taken out against the policy's cash value. This allows the policyholder to access funds for various purposes, such as making investments, without having to sell assets or take out a traditional loan. The Cash Value continues to grow despite the loan, as if the policyholder had not touched the funds in the first place… 3. Policyholders can access their cash value through a policy loan. Policy loans have either fixed or variable interest rates & do not require a credit check, so it is a fast process ~1-2 days for transfer of funds to policyholder. It is like the policyholder is borrowing from themselves. The interest charged is typically much lower than what they would pay for a loan from a bank. Interest is paid to the insurance company. 4. The death benefit provided by the life insurance policy is another key asset, wherein the assets from the “family bank” pass from one generation to the next. In the event of the policyholder's death, their loved ones or the family trust will receive the death benefit, which can provide financial security, peace of mind, and significant asset transfer from generation to generation. Death benefits are paid income tax free if policy is funded appropriately & under the estate tax threshold (~24M). 5. The cash value component of the policy can also be used as a source of tax-free retirement income. This allows the policyholder to access funds for retirement without having to pay taxes. This is done by: 1) withdrawal up to your cost basis 2) then take policy loans without worrying about paying it back or servicing the loan interest. This two step process keeps max efficiency for higher distribution amounts & avoids taxable events. 6. Whole life insurance policies are more expensive than term life insurance policies. This means that the policyholder needs to carefully weigh the potential benefits we have been discussing against the costs involved. Term provides coverage for a limited amount of time. Term is cheapest form of death benefit (less than 1% of policies pay out). Whole life has a fixed premium amount, term can as well. Whole life builds a cash value, term does not. 7. Premium payments – two places your money can go: 1) base premium buying expensive whole life and 2) paid up additions (PUAs) with a high cash value crediting rate. It's also important to note that if the policyholder fails to make premium payments or borrows too much from the policy, they risk losing/lapsing the policy. This means that it's important to carefully manage the policy and ensure that premium payments are made on time. 8. Yes, guaranteed values on a whole life insurance policy are guaranteed. Guarantees refer to certain elements of the policy, such as the premium amount, death benefit, and cash value. 9. Non-guaranteed dividends, are payments made by the insurance company to its policyholders based on its financial performance and other factors. These dividends are not guaranteed and may vary from year to year, depending on the company's financial results and other factors. 9. The philosophy behind IBC centers around the idea of self-sufficiency and control over one's own financial future. Creating your own bank allows: 1) greater control 2) greater flexibility and 3) better financial performance over the long run. Alpha Crusaders LLC - As a brokerage based in Portland, Oregon, we provide customized insurance solutions and expert guidance to clients throughout the United States such as Oregon, New York, Florida, California, Washington, Michigan, North Carolina, Texas, and more! Thank you for watching and your support! Don't forget to subscribe! DISCLAIMER: All advice and/or opinions expressed in our videos are the result of our experience in the insurance and financial industries. Any action taken based on the information expressed in our videos is the sole responsibility of the viewer. All content produced is for informational purposes only. #finance #wholelife #insurance