Frequently Asked Questions

These are all different names for a very similar concept, which is using permanent life insurance as a way to become your own bank and build lasting wealth. It’s a proven concept that’s been used by the ultra-wealthy for decades. However, not all permanent life insurance is the same, and if you set it up incorrectly, it won’t serve your purposes. Your Certified Cash Flow Banking™ specialist structures your policy to work in YOUR favor. That means minimizing fees and commissions and maximizing cash value. And what really sets Cash Flow Banking™, Inc. apart is the amount of free education you get. Unlike typical life insurance salesmen who try to keep everything shrouded in mystery, your Certified Cash Flow Banking expert will answer all your questions and take as much time as you need so you fully understand the process before you start your own Cash Flow Bank™.

No. Generally, it takes a few years to fully capitalize your Cash Flow Bank™. But there are different ways to set up your account, and if even if you’re older, you may be able to capitalize your account much more quickly with various funding techniques. The best way to find out how it can work in your unique situation is to request a free, no-obligation consultation with one of our Cash Flow Banking™ experts.

First things first. Cash Flow Banking™ is not an investment in the traditional sense. It is a savings vehicle with a contractually guaranteed earnings component. Unlike investments that can go up or down in value, a Cash Flow Bank™ cannot lose money. So it’s really more about saving than investing. As far as how much you need to put into your Cash Flow Bank™ to make it work — that really depends upon how you want to use it. You can easily set up a small Cash Flow Bank™ for as little as $100 per month. Generally, your money will grow most efficiently if you add at least $250 per month. Of course, the more you put in to your Cash Flow Bank™, the more you’ll be able to use it to your advantage.

There are several reasons. First, the government restricts the advertising of the special insurance that serves as the “engine” for your Cash Flow Bank™. That’s one reason. The second reason is that the financial services industry either doesn’t know about them or has no interest in steering you toward one, since it is not in their financial interest. Like most of the wealth-building tools and accounts used by the ultra-rich, word of mouth is the primary way people find out about the Cash Flow Banking™ concept.

Even though it sounds too good to be true, thousands of people use this system every day and automatically grow their wealth with every use. The “magic” is that you are not actually taking your own money out of your Cash Flow Bank™. Instead, you are borrowing other people’s money and using your account balance as collateral. This gives you the same leverage that a bank has in using other people’s money to their advantage.

Yes, you pay interest on the loans you take out. However, the interest rate you are charged is competitive, and usually less than the going rate you could get at a bank or credit union. And since you are simultaneously earning interest on the entire balance of your Cash Flow Banking™ balance, it reduces your effective interest rate even more. And if you pay back the loan (which is optional), you will earn the exact same amount as if you had simply left the money in your policy without a loan. So why not use that leverage to your advantage and make one dollar do the work of two? Plus, if you pay yourself back with extra interest, you will come out ahead. Your Certified Cash Flow Banking™ expert can show you how it all works visually on a spreadsheet. Just set up your FREE one-on-one consultation today.

Since the IRS views the cash value in your Cash Flow Bank™ as life insurance (what it technically is), they do not tax it. If you take a loan out against the cash value of your policy, that is not taxable either since loans are not considered taxable income.

Like any financial instrument, there are some potential small risks. But they are much less than with a typical Wall Street investment. One of the main risks is if you are unable to make the minimum required yearly premium to keep your policy active, you may be required to surrender your policy. Even if this happens, you will still get back some of the money you put into your Cash Flow Bank™, so it will rarely be a total loss. Another risk is if your cash value grows too much, your policy might convert into a taxable account. This is easily avoidable, however, and your Certified Cash Flow Banking expert will help you design a policy that minimizes this risk. Plus the insurance company is required to monitor for this condition and will alert you to take action if it occurs. The solution can be as simple as withdrawing some of the cash value from your policy.