The infinite banking concept is a beneficial tool for real estate investors. With banks tightening their lending rules and regulations in the aftermath of the 2008 disaster, the infinite banking concept creates a platform for investors to have access to capital which can be leveraged to invest in real estate.
A real estate investor or buyer requires a platform to park liquid money which can be hedged against vacancies and different maintenance costs. They require a safe vault which allows access to the stored cash while it grows at a pace which keeps up with inflation at the bare minimum while it waits to be used.
Dividend paying, high cash value whole life insurance policy can satisfy this requirement for access to capital when needed.
Whole Life Insurance – Helping You to Build A Real Estate Portfolio
Whole life insurance when structured correctly can work like a savings account that never goes down in value compared to just any ordinary insurance policy.
Whole life insurance ensures tax-free growth and the overall value keeps on appreciating over time. It ensures guaranteed returns on your cash value between 3 – 5 percent tax-free. It is well-protected from the ups and downs of the market.
Also, you have access to the cash component via policy loans. This can easily be leveraged for a real estate purchase or basically any expense.
Along with that, it protects your family from a financial crisis due to your untimely death.
Additional benefits include no involvement of the IRS, creditor protection & guaranteed growth.
Tapping The Advantages Of Whole Life Insurance To The Fullest
With the cash flow generated from real estate investments, the investor can easily pay the policy premiums and use cash value to repay the mortgage quickly.
Even if you use the cash value of the whole life insurance to secure a loan and set up another income generating channel, it does not stop compounding. It is still earning dividends and interest.
And at the same time, it is working in your real estate investment to generate more income and make your portfolio more robust.
Contact Up Planning Edge today and schedule a consultation and find out more about growing and protecting your wealth!