Chances are you’ve already heard about the claims behind building wealth by starting you own personal bank with whole life insurance. While it might sound too good to be true, many people are actually amassing numerous wealth by taking this route. Actually, there seems to be no stopping soon if the numerous benefits destined to come your way are anything to go by.
Either way, you must be able to differentiate the myths and misconceptions of this banking concept before you can finally give it a try. To make your quest easy, here are two top myths behind becoming you own banker you probably did not know about.
Myth 1: Using Whole Life Insurance to become Your Own Banker is a Bad Idea
Some people tend to think that Whole life insurance is a bad investment and automatically makes using it to become your own banker a bad idea. However, this is not really the case and it is completely optional. Now more than ever, there are numerous ways to design a policy for different financial goals, with things not any different when it comes to whole life insurance. That is why you ought to factor in how the policy is designed before you can finally become your own banker.
Myth 2: You’re Only Paying Yourself the Interest When Using Whole Life Insurance to Become Your Own Bank
This is one of the most common myths doing rounds when it comes to using Whole life insurance to become your own banker. Actually, some agents will tell you that when you pay interest on a policy loan, you’re paying yourself back that interest. While it might sound enticing, this is far from the truth and you should never believe them at any given time.
Before you decide to become your own banker, it is highly recommended that you spend some time carrying out a detailed research. This action is aimed at making sure you get all the facts right before deciding on anything. It is then that you will make an informed decision.