Recently, a person in my community who just received their insurance license in November, tried pushing what I think is a scam.
She called it “infinite banking” and apparently it involves “overfunding” a Whole Life policy then borrowing against that.
The risks I read about are that you could deplete your life insurance payout. The “rewards” are low interest loans that you are borrowing from yourself. It seems to me if you need such a loan, you are a bad credit rish & shouldn’t be borrowing. If you have enough money to overfund a Whole Life policy, I think you should just be saving.
It was pitched as a way to pay off debt, with this person claiming they saved someone over $250k in the time it took the ink for their license to dry.
I’d like to see Clark’s take on this, but I’ll just keep buying term life insurance, knowing it’s just to replace income.