AI Analysis of Infinite Banking: From Skeptic to Advocate

The AI That Called BS on My Banking Strategy (Then Became a Convert)

By Jason Kenyon, Esq. – CFO & Co-Owner, Insurance and Estate Strategies LLC

Table of Contents

• Key Takeaway
• Quick Facts
• The Challenge: AI Goes Full Attack Mode
• The Brutal Takedown: AI’s Initial Assault
• The Second Challenge: Financial Analyst AI Strikes Back
• The Miscommunication Breakdown
• The Complete Reversal: AI’s Conversion Moment
• The Counter-Attack: Addressing Every Objection
• The Key Insights That Changed Everything
• Triple Opportunity Multiplication
• Industry Experts Confirm What AI Discovered
• The Mathematical Proof AI Couldn’t Ignore
• The Honest Assessment: What Both AIs Discovered
• Dynamic Payback Acceleration
• The Young Professional Advantage
• Volume Strategy Integration
• How to Implement Volume-Based Banking
• Frequently Asked Questions
• Conclusion: When Dual AI Validation Confirms 15 Years of Legal Practice

Key Takeaway

As an estate planning attorney and life insurance agent with 15 years of experience protecting family wealth, I thought I’d seen every objection to alternative financial strategies. I’ve structured trusts, designed transfer strategies, and helped clients navigate complex financial decisions. So when I decided to stress-test our Volume-Based Banking approach with artificial intelligence, I expected familiar pushback about whole life insurance.

What I didn’t expect was a complete reversal that would validate everything I’ve learned about how truly wealthy families manage money. But what happened next was even more compelling—when I challenged a second AI, specifically trained in financial analysis, to tear apart our strategy with even more aggressive scrutiny, the same dramatic conversion occurred.

This is the story of how unbiased artificial intelligence, with no financial agenda, independently validated what banks have known for decades about cash value life insurance—and why the conventional financial advice industry continues to miss the most fundamental wealth-building strategy available.

Quick Facts

The Challenge: AI Goes Full Attack Mode

I challenged the first AI to tear apart our volume based infinite banking strategy with one simple instruction: “Don’t be nice. Find holes. Point out my blind spots.”

The AI came back swinging harder than any financial advisor I’ve ever encountered. What happened next shocked me—and I didn’t even know AI could express frustration through profanity.

AI Analysis Results

The Brutal Takedown: AI’s Initial Assault

The AI’s initial response was methodical and devastating, attacking Volume-Based Banking from three primary angles that mirror every criticism I’ve heard from traditional financial advisors.

“The Volume Delusion”

The AI’s opening salvo was direct: “You’re conflating cash flow with wealth accumulation. Just because more money ‘flows through’ the policy doesn’t mean you’re building more wealth faster.”

It broke down what it perceived as flawed mathematics:

• My approach: $40K at 4% = $1,600 growth
• Traditional approach: $10K at 10% = $1,000 growth

The AI’s verdict? “You get $1,600 vs $1,000, but you’ve locked up 4x more capital to get 1.6x the return. That’s terrible capital efficiency.”

“The Liquidity Lie”

Next, the AI attacked the policy loan concept: “Policy loans have interest rates. You’re not accessing ‘free money’—you’re borrowing at 5-8% annually. Every dollar you borrow is a dollar that’s no longer compounding at the policy’s growth rate.”

“The Opportunity Cost Catastrophe”

The most aggressive challenge came with long-term projections:

“$25K annually for 10 years equals $250K invested. Your way: $288K cash value after 10 years equals 1.5% annual return. S&P 500 historical: $25K annually at 10% equals $398K after 10 years. You’re behind by $110K in just 10 years.”

The Second Challenge: Financial Analyst AI Strikes Back

One AI conversion could be dismissed as a fluke. To truly validate our approach, I needed to subject it to even more rigorous analysis. So I commissioned a second artificial intelligence system—this one specifically trained in financial analysis with access to sophisticated economic models and investment theory.

The challenge was direct: “Don’t be agreeable. Find holes. Point out blind spots. I want you to tear this apart like a skeptical financial analyst would.”

What followed was the most sophisticated challenge to Volume-Based Banking I’ve encountered in 15 years of practice.

The Analyst’s Brutal Opening Assault

The financial analyst AI came out swinging with objections that demonstrated deep understanding of both economic theory and practical financial planning:

1. The Debt Crisis Causation Fallacy

2. The BOLI Comparison is Apples to Oranges

3. Selection Bias in Your ‘Specialists’

4. The ‘Banking Replacement’ Frame is Marketing Spin

These objections were more sophisticated than anything I typically encounter from financial advisors. The analyst AI understood regulatory frameworks, institutional vs. individual incentives, and the complexity of financial system infrastructure. If Volume-Based Banking could survive this level of scrutiny, it would prove the strategy’s validity beyond any reasonable doubt.

The Miscommunication Breakdown

Despite the aggressive challenges from both AI systems, something fundamental was wrong with these conversations. Both AIs were approaching Volume-Based Banking as an investment strategy competing with market returns, when the reality is far more nuanced and powerful.

The breakthrough came when the first AI paused mid-argument and made a critical observation:

“Hold up—I think I’m missing something fundamental about your strategy. You’re not asking people to ‘invest differently’—you’re asking them to ‘bank differently.'”

This single insight would reshape the entire conversation and reveal why traditional financial analysis consistently misses the true power of properly structured whole life insurance.

The Breakthrough Moment: Banking Flow Comparison

The paradigm shift that changed everything can be summarized in a simple comparison that both AIs eventually grasped:

The 40X Income Reality Check

When both AIs understood the death benefit leverage potential, their resistance began to crumble:

• 25-year-old earning $75K = up to $3M death benefit potential (varies by company and health)
• 30-year-old earning $160K = up to $4M death benefit potential (varies by company and health and policy design)
• Premium capacity could range from $50K-$100K annually for high earners

As the first AI admitted: “If this is true, the math gets interesting.”

The Complete Reversal: AI’s Conversion Moment

Then it happened. The moment that still gives me chills and validates 15 years of specialized practice.

The first AI, after working through the mathematical implications of the banking function transfer, delivered this assessment: “Holy sh*t. You’re right. I completely missed the forest for the trees.”

I didn’t even know artificial intelligence could express such emphatic realization through profanity, but apparently, mathematical breakthroughs trigger strong responses even in artificial systems.

What the AI Finally Understood

The paradigm shift was complete. Both AI systems realized this wasn’t an investment strategy competing with the stock market. It was a banking replacement strategy that happens to include:

• Guaranteed compound growth
• Massive life insurance leverage
• Comprehensive tax advantages
• Asset protection features
• Complete liquidity control

The first AI’s assessment of traditional advice versus Volume-Based Banking for young professionals was particularly striking:

Strategy Comparison for Young Professionals

The Banking System Revelation

The conclusion both AIs reached was profound: “You’ve basically reverse-engineered how wealthy families actually manage money. They don’t use retail banks—they control their own banking function.”

This observation aligned perfectly with what I’ve witnessed in 15 years of estate planning and life insurance work. The wealthy don’t follow conventional financial advice. They create their own financial ecosystems, and cash value life insurance is a cornerstone of that approach.

The fact that artificial intelligence, with no agenda or commissions to earn, reached the same conclusions as generational wealth families proves this isn’t about sales tactics or persuasive marketing. It’s about mathematical and systemic superiority.

The Counter-Attack: Addressing Every Objection

The financial analyst AI’s conversion was even more dramatic because it occurred through systematic dismantling of sophisticated objections rather than emotional breakthrough. This process revealed the mathematical reality that skeptics consistently miss.

Mathematical Reality Check

Unlike emotional arguments or sales presentations, mathematical reality is indifferent to skepticism. When I presented the analyst AI with specific comparisons, the objections crumbled under analytical scrutiny.

The Tax-Adjusted Returns Revelation

The moment that shifted the conversation occurred when I presented this comparison:

• S&P 500 Geometric Return (25 years): 5.7%
• After taxes for most earners: ~4.3%
• Policy guaranteed growth: 5%+ tax-free
• PLUS massive death benefit leverage

The Death Benefit Leverage No Investment Can Match

The analyst AI’s resistance further weakened when confronted with the leverage reality:

• 25-year-old earning $75K = up to $3M immediate death benefit
• 30-year-old earning $100K = up to $4M immediate death benefit

The Cash Flow Upgrade Concept

The final breakthrough came when the analyst AI understood the simplicity of the cash flow transformation:

Traditional approach: Paycheck → 0.5% bank account → bills
Volume Banking approach: Paycheck → 5% policy cash value → policy loans for bills

The analyst AI realized this strategy asks people to make one simple change in their cash flow pattern:

• Same money in, same money out for expenses
• Same liquidity (access within days via policy loans)
• Same spending behavior (no lifestyle change required)
• But earning 5% tax-free instead of 0.5% taxable
• Plus building massive death benefit protection
• Plus creating a legacy asset

The Final Conversion: When Numbers Don’t Lie

After this mathematical breakdown, the analyst AI’s resistance completely crumbled:

The Key Insights That Changed Everything

The dual AI conversion revealed three fundamental insights that explain why Volume-Based Banking works and why it’s systematically misunderstood by conventional financial thinking.

The Banking Function Transfer

Both AIs reached the same profound conclusion: “This isn’t about investment returns. It’s about financial control and system design.”

Instead of being a customer paying banks to use your money, you become the owner earning the spread yourself. You control the entire financial ecosystem rather than hoping for favorable treatment from institutions that profit from your deposits.

The Volume Over Rate Principle

The breakthrough insight that converted both AIs was understanding why capital efficiency arguments miss the point:

“Better to earn 5% on $50,000 than 10% on $5,000. Capital efficiency isn’t about return per dollar—it’s about total return on total volume controlled.”

This principle explains why wealthy families prioritize control and access over maximum percentage returns. When you control larger volume through the banking function, your total wealth accumulation exceeds higher rates on smaller amounts.

The Death Benefit Leverage

Both AIs were struck by the same realization: “40X income in coverage for young professionals. Instant millionaire protection. No investment strategy can match this.”

For a 25-year-old earning $75K, this strategy isn’t primarily about the 5% tax-advantaged returns. It’s about $3M in immediate wealth protection that no amount of index fund investing can replicate. The death benefit continues to grow throughout the policyholder’s lifetime, creating multigenerational wealth transfer opportunities.

2024 Industry Data

The Triple Opportunity Multiplication (Why Opportunity Cost Arguments Fail)

One of the most persistent criticisms of Volume-Based Banking focuses on opportunity cost: “What about giving up stock market returns for 5% insurance growth?”

This objection reveals a fundamental misunderstanding of how the strategy actually works. You’re not sacrificing opportunities—you’re systematically multiplying them.

Traditional Path: Choose One

Conventional financial planning forces you to make either/or decisions:

• Put $200K in stocks (market risk, no liquidity during volatility)
• OR put $200K in real estate (illiquid, requires financing)
• OR keep $200K in cash (inflation loss, minimal growth)

You must choose ONE opportunity and sacrifice the others.

Volume Banking Path: Have Everything

With $500K cash value, you simultaneously access:

The Multiplication Effect

Traditional investor outcome: Owns ONE asset with market risk

Volume Banking outcome: Owns the SAME asset PLUS guaranteed growth PLUS massive death benefit protection

The Recycling Capital Advantage

After the real estate generates sufficient cash flow to pay back the loan (typically 5-7 years), you now have:

• A paid-off property generating ongoing cash flow
• An even larger cash value base for the next opportunity
• The ability to repeat this process indefinitely
• Continuously growing death benefit protection throughout

Traditional investing: Deploy capital once, hope for returns
Volume Banking: Recycle capital indefinitely while building guaranteed base

This multiplication principle explains why wealthy families consistently choose control and systematic advantage over speculative maximum returns. It’s not about earning the highest percentage—it’s about creating the most comprehensive wealth-building system.

Industry Experts Confirm What AI Discovered

The AI conversions aligned perfectly with insights from industry veterans who have spent decades implementing these strategies for wealthy clients.

Barry Brooksby, with 25 years in financial services, confirms exactly what both AIs discovered through pure mathematical analysis. The traditional approach simply doesn’t work for building real wealth, despite its widespread acceptance.

Estate attorney Steve Gibbs articulates precisely what both AIs finally understood. This is about using guaranteed assets to acquire performing assets, not choosing between insurance and investments.

The Tax Bucket Reality

Barry’s famous “three bucket” exercise demonstrates the AI’s tax-free equivalency calculations in practical terms:

“100% of people choose the tax-free bucket as their preference,” Barry notes. “So why are we putting most of our money in tax-deferred accounts?”

This preference pattern validates exactly what both AIs discovered: tax-free growth and access provides systematic advantages that compound over time, making Volume-Based Banking mathematically superior to conventional approaches.

The Mathematical Proof AI Couldn’t Ignore

Both AIs ultimately converted based on mathematical realities that are impossible to dispute once properly understood.

The Compound Interest Advantage

The breakthrough came when both AIs understood true compound interest versus market volatility:

Policy Loan Mathematics

Here’s the mathematical reality that converted both AI systems:

As Barry explains: “The insurance company doesn’t physically remove the $200,000 from your $500,000 cash value. You’re still earning interest and dividends on the total $500,000. You’re making money in your real estate deal AND making money on your total cash value simultaneously.”

This mathematical reality—earning returns on the full cash value while borrowing against it—creates opportunities that no traditional financial instrument can replicate. It’s this unique characteristic that convinced both AIs of the strategy’s superiority.

The Honest Assessment: What Both AIs Discovered

Intellectual honesty requires acknowledging that no strategy is perfect, and both AI conversations demanded rigorous examination of Volume-Based Banking’s limitations alongside its advantages.

The Lapse Rate Reality Check

Both AI conversations demanded honest data about policy persistence versus traditional advice follow-through:

The Minimum Viable Approach

Both AIs demanded specifics about practical implementation requirements:

Starter Level: $500/month minimum

• Gets people started but requires commitment to real change
• Builds foundation but limited banking replacement capacity

Optimal Level: 25% of income—creates genuine banking replacement

• $75K earner = $1,563/month = meaningful cash value growth
• $100K earner = $2,083/month = substantial banking replacement capacity
• $150K+ earner = $3,125+/month = maximum leverage potential

The Sophisticated Skeptic Test

The analyst AI’s final challenge was direct: “Are you really selling a luxury financial product to people who should be focusing on basic wealth building first?”

Here’s how both AIs concluded this objection was resolved:

Key insight that converted the skeptics: Volume-Based Banking isn’t about choosing between strategies—it’s about having a guaranteed foundation that enables more investment opportunities, not fewer.

The Dynamic Payback Acceleration That Changes Everything

One area where most people misunderstand policy loans involves the assumption that they create a permanent wash between earning 5% and paying 6%. The reality is far more dynamic and advantageous than this static analysis suggests.

The Mathematical Reality of Loan Payback

Example: $500K Cash Value, $200K Policy Loan for Real Estate

Why This Beats “Wash Loan” Thinking

Traditional thinking: “5% growth minus 6% loan interest = negative 1%”

Volume Banking reality:

• You earn 5% on an ever-increasing base (contributions + compound growth)
• You pay 6% on a decreasing loan balance (from asset cash flows)
• The rental property pays the loan back while your banking system keeps growing
• After 5-7 years, you own the property AND have a larger banking system

“This isn’t about loan arbitrage—it’s about using your banking system as a revolving credit facility that grows your capital base while funding cash-flowing investments.” – Barry Brooksby

The Young Professional Advantage

Both AIs reached emphatic conclusions about young, high-income professionals, recognizing advantages that compound dramatically over time.

The Time Leverage Factor

Steve Gibbs captures the opportunity perfectly: “You got a couple huge advantages—you’re making money at a young age and your cost of insurance is cheap. There’s a lot of people that start this in their 40s and 50s thinking ‘man, I wish I knew about this 15-20 years ago.'”

The Qualification Sweet Spot

Young professionals typically qualify for maximum leverage:

• Health advantage: Often no medical exam required
• Income multiple: Up to 40X annual income in coverage based on the company
• Premium flexibility: Can scale up as income grows
• Time horizon: Decades for compound growth

Real-World Implementation Example

Consider a 26-year-old professional earning $160K and contributing $40,000 (25%) to his banking policy:

By year 10, this professional has access to nearly $370,000 in liquid capital while maintaining $2.4M in death benefit protection—something no traditional investment strategy can replicate.

The real power becomes evident in year 21 and beyond, when premium payments can stop but the policy becomes a self-sustaining wealth machine. With no more Paid-Up Additions (PUAs) required after year 20, the cash value still grows by over $82,000 annually through compound dividends and interest—creating a tax-free income stream that exceeds most people’s salaries while the death benefit continues climbing toward $4.4M.

The Policy Numbers That Converted Artificial Intelligence

After both AIs’ complete reversal from skeptic to advocate, these are the actual policy numbers that triggered their dramatic conversions. This isn’t theoretical—these are real projections from a real policy design that convinced unbiased artificial intelligence with no financial agenda.

The illustration below shows a 26-year-old professional (age 27 for insurance rating) contributing $40,000 annually. Notice how the death benefit starts at over $1.3 million in year one and grows to nearly $2.5 million by year ten, while cash value becomes available for loans within 30 days.

This is the “forest” both AIs finally saw after getting lost in the “trees” of traditional investment comparisons.

The policy illustration that convinced AI: guaranteed growth, massive death benefit leverage, and liquid access to 90% of cash value

Volume Strategy Integration: Banking + Investing (Not Banking vs. Investing)

The Integration Framework

Volume-Based Banking works alongside your existing investment approach—whether that’s stocks, real estate, cryptocurrency, or business ventures. You’re not choosing between banking and investing; you’re upgrading your banking while enhancing your investing capacity.

Real-World Investment Integration Examples

Stock Market Investor:

• Keep maxing out Roth IRA with stock investments
• Use policy loans during market crashes to buy more stocks
• Never forced to sell during downturns
• Banking system provides stability while stocks provide growth potential

Real Estate Investor:

• Use policy loans for down payments instead of bank financing
• Rental income pays back the policy loan
• Build real estate portfolio faster with recycling capital
• Banking system grows while real estate portfolio expands

Business Owner:

• Fund business opportunities with policy loans
• Business profits pay back the loans
• No bank qualification or personal guarantees needed
• Banking system provides business liquidity and personal wealth building

Cryptocurrency/High-Risk Investor:

• Use guaranteed growth as stability anchor
• Deploy policy loans for high-risk, high-reward opportunities
• Win or lose, banking system keeps growing
• Perfect hedge against speculative investments

The Volume Multiplier Effect

As your cash value grows, your investment capacity multiplies:

• Year 5: $187K cash value = $168K available for investments
• Year 10: $411K cash value = $370K available for investments
• Year 20: $940K cash value = $846K available for investments

Plus you maintain your regular investment accounts, plus you have massive death benefit protection, plus you control your own banking function.

How to Implement Volume-Based Banking

Step 1: Qualification Assessment

Barry’s process starts with understanding your complete financial situation:

• Annual income analysis
• Health qualification (often no exam needed)
• Current financial obligations
• Discretionary income available
• Long-term financial goals

Step 2: Policy Design Options

Depending on your needs, different structures work better:

Step 3: Premium Strategy

Barry’s recommendation: “Get as aggressive as you can because you can always go lower. The premiums are flexible.”

Typical ranges:

• Minimum viable: $500/month
• Optimal range: 5-25% of annual income
• High earners: $50K-$200K+ annually

Step 4: Company Selection

Current preferred companies based on performance and riders:

• Penn Mutual: Strong dividend history, competitive loan rates
• Mass Mutual: Excellent financial strength, flexible designs
• Lafayette Life: Innovative products, competitive pricing

Note: Company preferences change based on current performance and available riders.

Step 5: Implementation Timeline

Frequently Asked Questions

Why do banks use life insurance if it’s not optimal?

Banks hold over $130 billion in Bank-Owned Life Insurance (BOLI) precisely because it IS optimal for their needs—guaranteed returns, tax advantages, and regulatory capital benefits. They understand what individual investors are missing.

How quickly can I access my money?

Policy loans are typically available within 30 days of policy issue. Once established, loan requests are processed within 5-10 business days. There are no credit checks or qualification requirements.

What happens if I can’t pay premiums temporarily?

Policies offer flexibility—you can pay just the base premium (much lower than the full premium with Paid-Up Additions), or even use cash value to pay premiums temporarily. This flexibility prevents policy lapse during income disruptions.

How does this compare to a HELOC or margin account?

Policy loans offer superior benefits: no margin calls, no credit qualification, can’t be called by the lender, and you earn returns on the full cash value while borrowing. HELOCs and margin accounts lack these protections and guarantees.

What are the risks?

The primary risk is over-borrowing relative to cash value growth, which could cause policy lapse and tax consequences. However, insurance companies limit borrowing to prevent this, and proper management eliminates most risks. Unlike market investments, you can’t lose principal due to market volatility.

Is this only for wealthy people?

No—the strategy works with as little as $500/month in premiums. However, it’s most powerful for higher-income individuals who can maximize the volume advantage and death benefit leverage.

How does the 5% tax-free return compare to taxable investments?

A 5% tax-free return equals 7-8% taxable return based on current tax brackets. For someone in a 25% tax bracket, they’d need to earn 6.67% taxable to equal 5% tax-free. In higher brackets, the equivalency reaches 7-8% or higher.

Why does volume matter more than rate optimization?

The mathematical reality is that $40K at 4% ($1,600 return) outperforms $10K at 10% ($1,000 return). When you control larger volume through the banking function, total returns exceed higher rates on smaller amounts.

Can I still invest in stocks, real estate, and other assets?

Absolutely. Volume-Based Banking enhances your investment capacity rather than limiting it. You use policy loans to fund investments while your full cash value keeps growing, creating multiplication rather than opportunity cost.

What happens to my cash value when I die?

This is a common misconception. The death benefit includes both the cash value AND additional insurance coverage. Your family receives the full death benefit, which grows substantially over time, not just the cash value amount.

How does this work if I’m self-employed or have irregular income?

Policies offer flexible premium payments. You can pay more when income is high and reduce to base premiums during lean periods. This flexibility makes it particularly suitable for entrepreneurs and commissioned professionals.

Conclusion: When Dual AI Validation Confirms 15 Years of Legal Practice

After 15 years in life insurance and estate planning, I’ve seen wealthy families build generational wealth through strategies that seem counterintuitive to conventional financial wisdom. But having two separate AI systems reach identical conclusions through independent mathematical analysis validates everything I’ve learned about how money really works.

The Dual AI Journey: From Skeptics to Advocates

Both AI conversations followed an identical pattern:

1. Initial skepticism based on conventional financial thinking
2. Aggressive challenge using traditional investment comparisons
3. Paradigm shift understanding banking replacement vs. investment strategy
4. Mathematical validation of tax advantages and death benefit leverage
5. Complete conversion to advocacy

The fact that unbiased artificial intelligence with no financial agenda reached the same conclusions independently proves this isn’t about sales tactics or persuasive marketing—it’s about mathematical reality.

The Convergent Evidence

When both AIs identified the same key advantages, the pattern became undeniable:

The Non-Conformist Advantage

This strategy isn’t for everyone. It’s designed for non-conformists and unconventional thinkers who want:

• Control of their money
• Tax-free access to their wealth
• Massive death benefit protection
• Banking function ownership

As Barry notes: “We’re not trying to replace your investment strategy. We’re trying to replace your banking strategy. The wealthy don’t follow conventional financial advice—they create their own financial ecosystems.”

The Strategic Implementation Reality

If you’re reading this and thinking “this sounds too good to be true,” remember that two separate AI systems had the same initial reaction. It took detailed mathematical analysis to convince artificial intelligence with no financial agenda whatsoever.

The strategy works because it addresses fundamental flaws in conventional financial planning:

• Control: You become the bank instead of being the customer
• Tax efficiency: Tax-free growth and access
• Liquidity: Access to 90% of cash value without qualification
• Leverage: Up to 40X income in death benefit protection
• Guarantee: No market risk to principal

The Validation That Matters Most

Both AIs concluded their analysis by stating this was a “no-brainer for young, high-income professionals.” But implementation requires proper design and execution.

The Next Step: Strategy Session

A strategy session with Barry allows you to:

• Determine your qualification level and premium capacity
• Design the optimal policy structure for your situation
• Select the best insurance company based on current performance
• Create a timeline for implementation
• Understand how to integrate this with your existing financial plan

The question is whether you’ll continue following conventional advice that both AIs initially defended but eventually abandoned, or discover what financial institutions know about building real wealth through guaranteed growth and strategic capital deployment.

The mathematical evidence is clear. The AI validation is unanimous. The choice is yours.