This book contains the foundation of Robert Castiglione of LEAP, Inc., and the publication of his book, LEAP - The process of economic acceleration for life: the key to financial success.
Castiglione's book, written in 1980, attempts to defend the use of life insurance to create a savings account, where your compound interest paid is tax free, and this account allows you to be your own bank. The underlying premise of this book is that, throughout their lives, most people pay a lot of interest to creditors for all types of loans, from mortgages to cars, credit cards and college loans. This interest and interest in that interest is a large amount of money drained from the pockets of consumers and reduces their ability to get rich. The next main premise is that if, instead, you aggressively saved money within a certain type of life insurance policy, you could finance these loan purchases in that policy and pay the interest on the policy loans, instead of the bank . This is the functional equivalent of paying the loan with interest. Therefore, it keeps the interest within the cash value of its own life insurance policy, instead of paying the bank. The claim is that, instead of enriching the bank, your payments are enriched again to you or your heirs, when the policy is amortized with your death.
The savings account is also possible thanks to its tax benefits; The other benefits of whole life insurance:
• A guaranteed tax-free death benefit for your beneficiaries (important!)
• Cash value that grows at a guaranteed minimum credit rate, without risk of market loss.
• Tax free growth.
• Tax free withdrawals
• tax free loans
• Annual dividend payments, provided that your provider is a mutual insurance company, owned by the insured.
The IRS rules that support these statements are reviewed. Since then, other books have been written on this subject, but they review the same facts, the same concepts, which were originally called infinite banking. I think the book is a good read and I recommend it as part of your financial education.
