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Whole life insurance coverage policies are non-correlated assets - Infinite Banking benefits. This is why they work so well as the economic structure of Infinite Banking. No matter what happens in the market (stock, property, or otherwise), your insurance coverage retains its worth. Way too many individuals are missing out on this necessary volatility buffer that aids protect and grow riches, instead breaking their money into 2 pails: savings account and financial investments.
Market-based investments expand riches much faster but are revealed to market changes, making them inherently risky. What happens if there were a third container that offered security yet likewise moderate, guaranteed returns? Whole life insurance policy is that third container. No matter exactly how diversified you believe your profile might be, at the end of the day, a market-based investment is a market-based financial investment.
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