What Is the Purpose of Life Insurance?

What Is Infinite Banking?  Have you heard about Nelson Nash, Infinite Banking, Becoming Your Own Banker, bank on yourself, or be your own banker and want to learn more? Maybe you’re already using Infinite Banking but would like to explain it better to your spouse, parents, children, business partner, or friends. https://www.youtube.com/watch?v=dSCWZD5Hpbo Today, we're starting a new series on Infinite Banking Basics. We'll be unpacking all of your "what" questions about Infinite Banking. In this conversation, we answer: What Is Infinite Banking?What Is Whole Life Insurance?What Is the Purpose of Life Insurance? So if you want to see how Infinite Banking gives you control and options, why you don't want only term life insurance, and why insurance is still for you, even in your latest decades… tune in now! Table of contentsWhat is Infinite Banking?What is Whole Life Insurance?Term Insurance vs. Whole Life InsuranceWhat is the Purpose of Life Insurance?Book A Strategy Call Infinite Banking Explained The infinite banking concept is complicated, and something that most people learn over time. Even seasoned users of infinite banking have “ah-ha” moments as they grow in their understanding. The purpose of this conversation is to accelerate some of those “ah-ha” moments so that you can have the tools to get started.  [5:44] “Let’s be honest. Do you really, really, really need to know how something works? Or do you want to know what it does for you, and what it allows you to do in your own life? So we’re going to play that balance delicately today.” What is Infinite Banking? The simplest answer to this question is that infinite banking is a strategy of using specially designed whole life insurance. However this may call up many other questions, such as what is whole life insurance, and what does it mean to be specially designed?  To take the topic in a broader direction, let’s say that infinite banking is about creating financing opportunities. We all finance things: mortgage payments, car payments, bills, groceries, credit cards–-all of these are financing scenarios. An infinite banking system creates an additional, efficient pool of money for financing your life.  [8:22] “Nelson [Nash] said your need for finance is greater than your need for saving.” The beauty of infinite banking is that you get to do both–save money, and finance purchases. This is because you’re creating a financial system for yourself that mimics the banks. [10:58] “What infinite banking puts in your lap, or in your hands, is this ability to model the bank and act like the bank and control capital. And that’s at the core of why it allows you to finance well and save well, because you’re in a position of controlling capital like the bank does.” The preferred vehicle for infinite banking is whole life insurance, which helps you create a pool of money that is safe and growth-oriented. What is Whole Life Insurance? Life insurance is insurance that you pay a premium for, and if you die while the policy is active, your family receives a payout of money. The simplest definition of whole life insurance is life insurance that lasts for your whole life and provides a cash value account.  The reason it lasts your whole life, as opposed to term insurance, is because of the structured agreement. You agree to pay a certain amount of premium over your lifetime, in exchange for coverage over your lifetime. [14:54] “Whole life… takes the insurance cost and it spreads it out through your entire life.” This model guarantees that you will have coverage in place if you die, so long as you hold up your side of the deal: paying premiums. Fortunately, these premiums don't just vanish. You actually get to access your cash, through the policy's cash value component. Cash value works like home equity. The more premiums you pay, the more access you have to your cash value while you’re living.