These represent the financial advantages created when money is used through IBC or through a HELOC instead of sitting in traditional accounts.
These represent what slows down wealth building for families using checking and savings accounts.
Learn how Velocity Banking can work for your specific situation.
Velocity Banking into IBC: Your cash value remains liquid and available even while you borrow against it. You never interrupt growth. You can access money for opportunities, emergencies, or new chunk payments without restarting a savings plan.
Example: With 60,000 of cash value and a 25,000 loan outstanding, 35,000 remains accessible while the full 60,000 continues compounding.
Velocity Banking into HELOC: The HELOC stays open and reusable. As soon as you pay it down you can use it again to make more chunk payments or cover expenses without incurring new loan approval processes.
Example: After paying the balance down to 140,000, available credit automatically increases to 140,000 with no reapplication or approval.
Velocity Banking into IBC: Your money works in two places at the same time. The home loan balance drops while the cash value climbs. This dual growth opens doors for investments, family needs, business capital, and long term wealth building.
Example: A 30,000 policy loan funds an opportunity. An 4,000 profit is used to repay the loan, restoring cash value while the profit remains permanent.
Velocity Banking into HELOC: As equity increases faster you gain access to more financial options. You lower interest costs, increase cash flow, and create opportunities earlier in life instead of waiting decades.
Example: A 30,000 draw from the HELOC funds the opportunity. A 4,000 profit is deposited back into the HELOC, immediately lowering the balance and interest cost.
Velocity Banking into IBC: Your policy’s cash value grows without current taxation. When structured correctly, loans or withdrawals can be used without creating taxable events. You are building an asset that grows in a tax favored space which protects your future purchasing power.
Example: Cash value grows from 60,000 to 62,400 at a 4% interest rate with no current tax. Borrowing 25,000 creates no taxable event. Growth continues uninterrupted.
Velocity Banking into HELOC: You reduce taxable interest because you shorten the life of your principal balance. Depending on current tax laws some interest may be deductible, but the main benefit is paying far less interest overall.
Example: Interest savings reduce total interest paid over the life of the loan. Fewer after tax dollars are lost to interest, though interest itself is not tax sheltered.
Velocity Banking into IBC: Your principal balance payoff accelerates as you send periodic chunk payments created through policy loans. Loan balance payback timeline shortens your cash value timeline accelerates because you continually repay loans and add new PUA contributions.
Example: A 24,000 policy loan is repaid at 2,000 per month. The loan is eliminated in about 12 months while the full cash value continues compounding the entire time.
Velocity Banking into HELOC: The sweep and chunk cycle shrinks the principal balance schedule dramatically. What once took thirty years may take ten or even five depending on discipline and cash flow.
Example: A 10,000 chunk payment drops the balance from 175,000 to 165,000. Years of scheduled mortgage interest are removed instantly, shortening payoff time dramatically.
Velocity Banking into IBC: Policy loans charge simple interest and only on the amount borrowed. Meanwhile your entire cash value continues to grow at the full crediting rate. The growth reduces or completely offsets the loan cost over time.
Example: A 25,000 policy loan costs about 1,500 per year at 6 percent simple interest. Meanwhile 60,000 cash value grows by about 2,400 at 4 percent, offsetting loan interest.
Velocity Banking into HELOC: Using a HELOC lowers interest because the daily balance drops every time money flows through it. Each chunk payment to the principal cuts out years of future interest, speeding the entire payoff timeline.
Example: At 175,000, daily interest is about 33.56. After income reduces the balance to 169,000, daily interest drops to about 32.41. Over a year, reduced daily balances save thousands.
Velocity Banking into IBC: Premiums and PUA funding turn your policy into a compounding financial engine. Your cash value grows every day even when you take a policy loan. Your money does not pause or sit still. It constantly increases and builds long term wealth.
Example: 1,500 per month or 18,000 per year is paid into the policy. By year end, 12,000 of accessible cash value exists. That 12,000 compounds daily regardless of future borrowing.
Velocity Banking into HELOC: Your income sweeps into the HELOC which lowers the balance and interest cost. This creates growth through savings on daily interest and lets more of your money stay available for strategic chunk payments.
Example: The mortgage is replaced with a 175,000 HELOC balance. A 6,000 paycheck immediately lowers the balance to 169,000. Growth occurs through daily interest savings instead of interest amortization (compounding).
Traditional Banking
Your money sits in a checking or savings account that earns almost nothing. The bank uses your deposits to make money for itself while you receive pennies. Your savings never really accelerate which keeps you stuck in slow financial progress.
Example
Savings of 20,000 earn about 100 per year. Over ten years the balance barely exceeds 21,000.
Traditional Banking
Your traditional bank account earns less interest often than the inflation rate which means even while your money sits it will lose value. When using your funds you withdraw them and they stop working completely in the account so if you choose to borrow funds from the bank there is a high interest rate that often accrues daily interest.
Example
A 175,000 mortgage at three percent accrues about 437 per month regardless of income timing.
Traditional Banking
Every financial goal takes a long time. Paying off debt takes decades. Saving for emergencies or opportunities takes years. Nothing in the traditional system helps you speed anything up which makes life feel like a long grind.
Example
After ten years of payments, the balance remains above 130,000.
Traditional Banking
Your savings do not grow fast enough to offset rising taxes and inflation. Opportunities pass by because you do not have access to money working for you. Traditional banking leaves you reactive instead of proactive.
Example
Saving 500 per month takes five years to reach 30,000 while interest continues accruing and
opportunities pass.