Student loans are on the rise faster than ever. Universities are charging more for education every year. College expenses compound quickly. For the class of 2018, 69% of college students took out a loan. The average student debt after graduation was about $29,800.
These loans have become a huge financial burden on students. Is there an easy way to pay them off? The answer could lie in the idea of the infinite banking concept (IBC) and whole life insurance.
IBC Explained
Nelson Nash, the author of Becoming Your Own Banker, developed the IBC. However, the concept is nothing new. The objective lies in making the most out of tax laws. Managing your own money while also allowing it to grow and compound. Taking advantage of the assets that you already have by using whole life insurance and accumulated cash value.
Not Your Typical Loan
When you borrow from a bank or take a student loan, you are immediately working to pay it back. You aren’t allowing any of your assets to grow. However, with whole life insurance, you can take a loan against your policy. Using the money that you already paid and have built up in cash value. This will allow you to keep assets in your account that will grow and earn interest.
Mutual Trust Whole Life Insurance
Mutual Trust has brought the IBC to a large market. Their whole life policy allows you to collateralize. Additionally, the compound growth within your policy will remain untouched. Once you pay back the loan it’s like you never even borrowed the money.
Their plan guarantees:
- Tax benefit
- No qualifications for a loan
- No credit report
- Can skip payments
- Use and control your own money
- Private contract with no government interference
- No additional fees
Furthermore, whole life qualifies you to get the loan at a wholesale interest rate and pay it back at the retail rate. You pocket the difference between the two.
The process to get a loan from your whole life policy is easy. All it takes is sending in a one-page form and you are promised to get the money in three days or less.
Take Advantage of the IBC With Life Insurance
As a college student myself, I understand the stress of work and school. Paying off loans only adds to that. But with whole life, you can grow your assets and pay off those loans at the same time. Plus, you get the guarantee of life insurance in case something were to happen. Save yourself some stress. Insurance is an investment worth making. Especially, if it alleviates a large financial burden like student loans.
Life Insurance Questions?
We hope that this information on Life Insurance was useful to you.
If you’d like to learn how we can help you plan your retirement, call Empower Brokerage at (888) 539-1633 to speak to one of our Life and Annuity experts or leave a comment down below.
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