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Infinite Banking Concept Wikipedia

Published Mar 02, 25
1 min read
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It appears like the name of this principle changes once a month. You might have heard it referred to as a perpetual wealth strategy, household financial, or circle of riches. No matter what name it's called, unlimited financial is pitched as a secret means to develop riches that just rich people find out about.

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You, the policyholder, placed cash right into an entire life insurance policy with paying costs and buying paid-up additions.

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The whole concept of "financial on yourself" only functions since you can "bank" on yourself by taking lendings from the plan (the arrow in the graph above going from whole life insurance policy back to the policyholder). There are two different kinds of fundings the insurance provider might use, either straight recognition or non-direct acknowledgment.

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