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Whole life insurance plans are non-correlated properties - Infinite Banking. This is why they work so well as the financial foundation of Infinite Banking. Despite what takes place in the market (supply, property, or otherwise), your insurance coverage retains its well worth. Way too many people are missing this important volatility barrier that assists safeguard and grow wealth, rather splitting their money right into two containers: checking account and financial investments.
Market-based financial investments grow wealth much faster but are revealed to market changes, making them naturally dangerous. What happens if there were a third bucket that used security but likewise moderate, surefire returns? Whole life insurance policy is that 3rd bucket. No matter exactly how varied you assume your profile might be, at the end of the day, a market-based financial investment is a market-based investment.
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