What is Cash Flow Banking?

The common definition of a bank is a financial institution where you can make deposits or take out loans. Banks are profit-driven. When they do well financially, bankers make big bucks. They will always charge more in interest on a loan than they will pay in interest on money in your savings or checking accounts. This is how banks make money. They will charge you a much higher amount to borrow a dollar from them than they pay you to borrow one of your dollars.

Most of us have become so accustomed to the way traditional banks work that we don’t stop to consider, “What if there were a better way?”

Cash Flow Banking is a system where you save money in a whole life insurance companies instead of in a bank. The insurance company is your bank. They pay you a guaranteed rate of interest—much higher than you would earn in even a high-interest savings account and will also pay out non-guaranteed dividends based on annual performance. It’s worth noting that the mutually traded whole life insurance companies. Boss Financial works with have paid out dividends for well over 100 years. If you need a loan, it’s a private contract between you and your insurance carrier, not a bank. Interest rates are typically lower and you decide the pay-back terms.

When you create a cash flow banking system using whole life insurance, banks (or the Feds) don’t tell you what to do with your money—how to save it, how to borrow it, and what to spend the borrowed money on. Even better, when you borrow money, you don’t need approval from a bank, you don’t need a certain credit score or a credit check, and you don’t have to put up loan collateral like a home, car, or business.

The cash flow banking system is a concept that’s easy to implement and understand, and one that has been proven successful for hundreds of years, provided you use whole life insurance as your banking vehicle.