Famous People Using the Life Insurance Infinite Banking Concept
One of the most incredible creations in America, Disneyland, would not exist without life insurance. That’s right! Walt Disney had a hard time getting banks to fund his dream because they said it had too little collateral. He then funded the start of his empire with the cash value from his life insurance policy, and sold his second house. He banked on himself and he’s not alone. Many others have used life insurance, while they were alive, to kick start, expand, or save their businesses.
For instance, Ray Kroc didn’t take a salary for the first 8 years so he could keep the cash flow going. He used cash value from his life insurance policies to pay employees and get the burger shack off the ground and turn it into one of the most incredible success stories in the world.
Additionally, J.C. Penney used his life insurance as an emergency fund when, in 1929, the Great Depression hit. It kept his business going and is still in existence today.
Why Do These Famous People Use Life Insurance?
• It’s liquid. They can use the cash value as needed, in the form of loans from their life insurance policy.
• There are no credit checks.
• There are no age restrictions.
• It’s free of penalties.
• The money borrowed does not affect the balance accumulating interest.
• There is safe growth. In some instances, there’s guaranteed rates of return of 4% or more.
• Annual Crediting means accumulated interest is credited to the account.
• There are no losses. In down times, the account locks to prevent losses. Policy holders don’t lose value.
• It grows tax-deferred. No capital gains taxes on growth.
• It provides a tax-free death benefit.