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Entire life insurance policy plans are non-correlated assets - Infinite Banking vs traditional banking. This is why they work so well as the financial structure of Infinite Banking. Despite what happens on the market (stock, property, or otherwise), your insurance plan retains its well worth. As well several people are missing out on this vital volatility buffer that assists protect and expand riches, instead dividing their money right into two pails: savings account and financial investments.
Market-based financial investments expand wide range much quicker however are exposed to market changes, making them inherently high-risk. What if there were a 3rd container that provided safety but additionally modest, guaranteed returns? Entire life insurance policy is that third bucket. No matter just how diversified you think your profile may be, at the end of the day, a market-based financial investment is a market-based financial investment.
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