What Is a 770 Bank Account?


Quick Answer

A 770 account is an account named after Internal Revenue Service code 7702, which governs life insurance contracts, according to Fox Business experts. A 770 account is essentially a life insurance contract that can be used as a savings account and sometimes referred to as 'infinite banking.'

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What Is a 770 Bank Account?
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Full Answer

Unlike other 'life' accounts, such accounts are primarily designed for the living benefits as opposed to death benefits, making it possible to borrow money from a life insurance contract for personal, business or investment purposes. When money is borrowed from these life insurance accounts, the borrower pays himself back -not the financial institution- meaning the account holder gets the interest, and not the bank, explains Brett Goldstein, Director of Retirement Planning at American Investment Planners.

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