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Whole life insurance policy plans are non-correlated assets - Infinite Banking vs traditional banking. This is why they work so well as the economic foundation of Infinite Banking. No matter what occurs out there (supply, property, or otherwise), your insurance policy keeps its well worth. A lot of people are missing out on this crucial volatility buffer that aids secure and expand wide range, rather dividing their money into 2 containers: checking account and financial investments.
Market-based financial investments expand wide range much quicker however are revealed to market changes, making them inherently dangerous. What if there were a 3rd bucket that supplied safety but also modest, guaranteed returns? Whole life insurance policy is that 3rd bucket. Regardless of exactly how diversified you assume your portfolio may be, at the end of the day, a market-based investment is a market-based financial investment.
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