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It seems like the name of this idea changes once a month. You may have heard it described as a continuous riches technique, household financial, or circle of riches. No matter what name it's called, unlimited banking is pitched as a secret method to develop wealth that only abundant individuals understand about.
You, the insurance policy holder, put money into an entire life insurance plan through paying premiums and acquiring paid-up additions.
The whole idea of "banking on yourself" just functions due to the fact that you can "bank" on yourself by taking finances from the plan (the arrowhead in the chart above going from whole life insurance policy back to the policyholder). There are two various kinds of loans the insurance provider might provide, either straight acknowledgment or non-direct acknowledgment.
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Infinite Banking: Using Life Insurance As A Source Of Liquidity