Balancing Cash Value and Death Benefit

Have you heard about Nelson Nash Infinite Banking, and Becoming Your Own Banker and you want to learn more? Or maybe you’re already using the Infinite Banking concept, but would like to explain it better to your spouse, your parents, your children, your business partner, or friends. https://www.youtube.com/watch?v=0czmA6OBAcw Today, we're unpacking the fundamentals of the Infinite Banking Concept and the way it benefits you NOW and LATER. In this episode, you'll learn some of the options you have by creating an Infinite Banking policy... tune in now! Table of contentsWhat is the Danger of Considering Only Immediate Cash Value and Ignoring the Future Death Benefit, Dividends, and Cash Value?What Kinds of Large Ticket Expenses Can I Use Infinite Banking For?Should I Put My Whole Paycheck into Whole Life Insurance?What Are the Advantages of Using the Infinite Banking Concept to Pay for College?What Are the Pros and Cons of Insuring Your Kids?How Does Infinite Banking Save Me Taxes?How Can I Use the Infinite Banking Concept to Invest in Real Estate and Earn Better Returns?How Can I Use Infinite Banking to Increase My Retirement Income?How Can I Use Infinite Banking for Generational Wealth?What Can I Do Now to Get a Policy My Future Self Will Thank Me For?Book A Strategy Call What is the danger of considering only immediate cash value and ignoring the future death benefit, dividends, and cash value?Infinite banking concept life insurance policies are great for warehousing wealth, but it’s important to find a balance between early cash value, long-term potential, and death benefit. While early cash value is going to be of use in the short term, the death benefit is the backbone of the insurance policy. It acts as income protection for your family and helps you build a generational legacy if you’re playing the long game. What is the Danger of Considering Only Immediate Cash Value and Ignoring the Future Death Benefit, Dividends, and Cash Value? Working with an experienced IBC (Infinite Banking Concept) practitioner to not just create good liquidity in the early cash value, but also balance that with the long-term benefits for the most efficient policy possible is wise. This may even mean filling in your insurance “gaps” with term insurance (usually convertible) to reach your full Human Life Value. That way, you always have the right protection in place.  It’s sometimes difficult to think about what you’re going to value thirty years or more in the future, but the more you can anticipate those desires now, the better position you put yourself in for the future. You may not care about having your full Human Life Value in your early 20s, but what about when your family grows?  [8:47] “You have to step back and look at your own life and see the balance not only now as a younger person or a middle-aged person or an old person.” [12:52] “The people who make the best decisions are the ones who can delay gratification, who can say no, I’m not going to eat the one marshmallow today because I get two tomorrow.” What Kinds of Large Ticket Expenses Can I Use Infinite Banking For? The benefit of an infinite banking policy is that you have the freedom to use your cash value on anything you wish. So the simple answer is anything. However, we often recommend using your cash value to finance things you wouldn’t normally use your checking account for. A car, a major vacation, an investment, or some other “big ticket” purchase is more suited to a loan.  There’s no cut-and-dry answer because it’s going to depend entirely on your personal situation. For example, if you can make a big-ticket purchase in cash, but doing so would prevent you from paying your PUAs, you might be better off borrowing against your policy. That way, you can continue to fund your PUAs at a maximum.  The reason is that paying those PUAs will buy you additional death benefit, and therefore increase your available cash value.