FAQs

What is life insurance?

1. Life insurance is a contract between an individual and an insurance company where the individual pays regular premiums in exchange for a death benefit. The death benefit is a lump sum of money paid to the beneficiaries in the event of the individual's death.

Why do I need life insurance?

1. Life insurance is an important tool for protecting your family's financial future. If something were to happen to you, your death benefit would provide financial support for your loved ones and help cover expenses like funeral costs, outstanding debts, and other bills.

What is the infinite banking concept?

1. The infinite banking concept is a strategy where individuals use permanent life insurance policies to build wealth and create a source of passive income. The policyholder uses the policy's cash value as collateral to take out loans and make investments, all while building wealth and having access to the death benefit.

How does life insurance work with the infinite banking concept?

1. With the infinite banking concept, the policyholder uses a permanent life insurance policy as a source of collateral for loans. This allows the policyholder to access the policy's cash value for investments and other financial needs, while also building wealth and having access to the death benefit in the event of their death.

Is life insurance a good investment?

1. Life insurance can be a good investment for individuals who are looking for a source of passive income and a way to build wealth. The cash value of permanent life insurance policies grows tax-free, which can provide a significant source of passive income over time.

What type of life insurance is best for the infinite banking concept?

1. The infinite banking concept is most commonly used with permanent life insurance policies, such as whole life insurance or universal life insurance. These policies have a death benefit and a cash value component, which allows for the policyholder to access the cash value as collateral for loans and investments.

Can I use life insurance to pay for my children's college education?

1. Yes, life insurance can be used as a way to pay for college education. With the infinite banking concept, the policyholder can access the cash value of their life insurance policy as collateral for a loan to pay for college expenses. The death benefit can also be used to pay for education expenses in the event of the policyholder's death.

What is the difference between term life insurance and permanent life insurance?

1. Term life insurance provides coverage for a specific term, typically ranging from 10 to 30 years. Permanent life insurance, on the other hand, provides coverage for the policyholder's entire life and also has a cash value component that grows over time.

How much does life insurance cost?

1. The cost of life insurance depends on several factors, including the individual's age, health, and coverage amount. Term life insurance policies tend to be less expensive than permanent life insurance policies, but the cost of permanent life insurance can be more cost-effective over the long term.

Can I use my life insurance policy as collateral for a loan?

1. Yes, with the infinite banking concept, the policyholder can use the cash value of their life insurance policy as collateral for a loan. This allows the policyholder to access the cash value for investments and other financial needs while also building wealth and having access to the death benefit in the event of their death.