Imagine acting as your own bank—borrowing from money you’ve built, keeping control of cash flow, and relying less on traditional lenders. That’s the goal of the Infinite Banking Concept (IBC), and a properly structured Indexed Universal Life (IUL) policy can help make it work. By funding an IUL beyond the minimum premium, you can build cash value faster and create a financing pool. Cash value growth can be linked to a market index, offering upside potential while using features such as a 0% floor to help limit losses in down markets. Once sufficient cash value accumulates, you may take policy loans to pay for major purchases, invest in opportunities, cover emergencies, or manage debt—often without credit checks or lender approval. Policy loans typically aren’t treated as taxable income as long as the policy stays in force, and you choose the repayment timing, which can add flexibility. If a loan remains unpaid, the balance is generally deducted from the cash value or death benefit, which may still pass to heirs income-tax-free. Success depends on correct setup from the start, including avoiding Modified Endowment Contract (MEC) status and prioritizing cash value efficiency. Always review costs, caps, and illustrations to set realistic expectations.
source: https://iulmadeeasy.com/infinite-banking-made-simple-with-indexed-universal-life-insurance/
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