About Your Expert Authors
Steve Gibbs – Trust and estates attorney, founder of Insurance & Estates, and author of “The Ultimate Asset®.” With 18+ years protecting high-net-worth families from financial system vulnerabilities through properly structured whole life insurance strategies.
Barry Brooksby – Certified Infinite Banking Practitioner, 25+ years in financial services, author of “Live Rich Die Rich,” and expert in Volume-Based Banking strategies.
Quick Answer: Best Infinite Banking Company for 2026
Penn Mutual ranks #1 for infinite banking based on our analysis of long-term cash value performance, policy flexibility, and paid-up additions options. Their 6% dividend rate and record $300 million payout for 2026 continues a growth trajectory from just $30 million in 2011.
Bottom line: Focus on mutual companies with 100+ year dividend histories and agents who understand Volume-Based Banking principles, not just traditional insurance sales.
Key takeaway: The company matters, but policy design matters more. A poorly designed policy from the best company will underperform a properly structured policy from a lower-ranked choice.
💡 Why Trust This Guide
- 70+ years combined experience in life insurance and estate planning
- Exposed to all carriers – we’re independent brokers, not captive agents pushing one company
- Exposed to Volume-Based Banking – we designed the methodology, not just read about it
- Exposed to 1,000+ IBC policy implementations since 2017
- 280+ verified client reviews on Trustpilot — ranked #1 life insurance agency
We tell you what works because we’ve seen what doesn’t.
What is Infinite Banking? (Quick Explanation)
Infinite Banking is defined as using a dividend-paying whole life insurance policy as your personal banking system. Instead of enriching Wall Street banks, you become your own banker and pay interest to yourself.
Here’s what the financial establishment doesn’t want you to know: Banks hold over $130 billion in the exact asset they tell you to avoid — cash value life insurance. They use it for their own reserves while steering you toward market speculation that enriches their trading desks.
The Volume-Based Banking Philosophy
Traditional financial advice focuses obsessively on “rate of return.” But wealthy families and institutions focus on volume and control. They channel massive amounts of money through guaranteed systems, then leverage that volume for additional opportunities.
This is exactly what infinite banking enables: high-volume money flow through a contractually guaranteed system that grows regardless of market conditions, political chaos, or economic uncertainty.
“The wealthy don’t chase returns — they control money flow. Infinite banking gives you the same tool banks use to create wealth: guaranteed growth plus leverage capability.”
The magic happens when you cut out the middleman and funnel all your financial transactions through your Ultimate Asset® policy. Instead of paying interest to banks, you’re paying it to yourself, creating a powerful cycle of wealth accumulation while maintaining complete liquidity and control.
Why Most People Get Infinite Banking Wrong
Most people approach infinite banking like they’re shopping for car insurance — they want the “cheapest” option with the “highest dividends.” This is backwards thinking that leads to poorly designed policies and disappointing results.
The Real Success Factors (In Order of Importance):
- Policy Design — Maximizing paid-up additions and early cash value growth
- Agent Expertise — Practitioners who understand Volume-Based Banking, not traditional insurance salespeople
- Company Selection — Mutual companies with proven dividend history
- Long-term Commitment — 7+ year wealth accumulation timeline
- Integration Strategy — How the policy fits your overall financial sovereignty plan
Industry analysis reveals: 90% of infinite banking “failures” result from poor policy design, not company selection. The remaining 10% usually involve people who quit before year 7 when policies hit their stride.
⚠️ Warning: The Insurance Industry’s Dirty Secret
Most life insurance agents don’t understand infinite banking policy design. They’re trained to sell traditional death benefit-focused policies, not optimize cash accumulation systems. Many agents learned about IBC last month from a YouTube video.
Questions to ask any agent before working with them:
- How many infinite banking policies have you personally designed?
- What’s your strategy for maximizing paid-up additions while avoiding MEC status?
- Can you show me actual client policy performance, not just illustrations?
- Do you understand Volume-Based Banking or just traditional IBC?
If they can’t answer confidently, find a different agent. Working with an IBC specialist isn’t optional — it’s essential for success.
How We Ranked the Top 10 Infinite Banking Companies
We analyzed 47 whole life insurance companies using five critical criteria. Unlike generic “best life insurance” lists written by people who’ve never implemented infinite banking, our analysis focuses specifically on Volume-Based Banking compatibility and real-world IBC performance.
Criteria 1: Mutual Company Structure
According to Kiplinger’s Personal Finance Magazine, when searching for cash value life insurance, a mutual company is your best bet.
There are two types of insurance providers: stock vs mutual companies. Stock companies must balance policyholder interests against shareholder demands — a fundamental conflict of interest. Mutual companies only serve policyholders.
Why this matters for IBC:
- You become a member — Not just a customer, but an owner
- Dividends return to you — Profits flow to policyholders, not Wall Street shareholders
- Long-term focus — No quarterly earnings pressure compromising policyholder interests
- Stability over speculation — Conservative growth vs. risky profit maximization
Criteria 2: Long-Term Cash Value Performance
We examined how policies actually perform over 10, 20, and 30+ year periods — not just illustrated projections. The best companies optimize for early cash accumulation while maintaining strong long-term growth.
Key Performance Metrics:
- Dividend Payment Consistency — 100+ consecutive years through every economic crisis
- Cash Value Accumulation Speed — How quickly you can access capital for banking operations
- Policy Loan Arbitrage — Favorable spread between dividend credits and loan rates
Criteria 3: Financial Stability
We prioritized companies with:
- A.M. Best ratings of A or higher — Independent financial strength analysis
- 100+ year operating history — Proven survival through multiple economic cycles
- Conservative investment philosophy — Focus on bonds and real estate over Wall Street speculation
When the next financial crisis hits, you want your banking system with a company that’s survived every previous crisis.
Criteria 4: Policy Design Flexibility
The best infinite banking companies offer:
- Flexible paid-up additions riders — Ability to maximize cash value growth
- Multiple premium payment options — 10-pay, 20-pay, life-pay flexibility
- Convertible term riders — Strategic death benefit optimization
- Accommodating underwriting — Willingness to structure policies for IBC goals
Criteria 5: Agent Education & Independence
We favor companies with:
- Independent broker networks — Not just captive agents pushing one product
- Training in cash value optimization — Not just traditional death benefit sales
- Home office support — For Volume-Based Banking strategies
“The dividend rate gets all the attention, but it’s only part of the story. What matters is how much of your premium actually goes into cash value in the early years — and that comes down to policy design and how flexible the company is with paid-up additions. A 6% dividend on a poorly designed policy will underperform a 5.5% dividend on a well-designed one every time.”
Top 10 Infinite Banking Companies for 2026
Important disclaimer: These rankings represent our analysis based on the criteria above. Your personal situation (health, age, income, goals) may make a different company optimal for your specific needs. All 10 companies can produce excellent infinite banking results when properly implemented.
Our Expert Rankings
Rankings based on 70+ years combined experience and 1,000+ IBC policy implementations
🎯 Key Takeaway: Why Penn Mutual Ranks #1
Penn Mutual consistently delivers the best long-term cash value performance when policies are properly designed. Their combination of competitive dividend rates, maximum flexibility with paid-up additions, and independent broker access makes them ideal for Volume-Based Banking strategies. The record $300 million dividend payout for 2026 (up from just $30 million in 2011) demonstrates their commitment to policyholders.
2026 Infinite Banking Companies Comparison
| Company | A.M. Best | Recognition | 2026 Dividend | Total Payout | PUA Flexibility | Best For |
|---|---|---|---|---|---|---|
| 1. Penn Mutual ⭐ | A+ | Direct | 6.00% | $300M | Excellent | Maximum cash value, IBC/VBB strategies |
| 2. Lafayette Life | A+ | Non-Direct | 5.75%* | $123M | Excellent | IBC purists, lump-sum funding |
| 3. Foresters Financial | A | Non-Direct | 6.00% | — | Excellent | No-exam whole life, quick start |
| 4. MassMutual | A++ | Non-Direct | 6.60% | $2.9B | Very Good | Highest dividend rate, institutional strength |
| 5. Guardian Life | A++ | Direct | 6.25% | $1.7B | Very Good | 10-pay policies, customer service |
| 6. OneAmerica | A+ | Non-Direct | ↑ from 2025 | — | Excellent | Indexed dividend option, flexible PUA |
| 7. New York Life | A++ | Direct | 6.40% | $2.78B | Good | Existing policyholders, high net worth |
| 8. Ameritas | A | Direct | 5.10% | — | Good | 10-pay rapid funding, living benefits |
| 9. Security Mutual Life | A- | Non-Direct | Not disclosed | $21.5M | Good | IBC-focused products, 132-year streak |
| 10. Mutual Trust Life | A | Non-Direct | Not disclosed | — | Very Good | “The Whole Life Company,” IBC specialists |
| ⭐ = Insurance & Estates top recommendation | *Lafayette Life 2026 rate not yet announced; showing 2025 rate | ↑ = increased from prior year Notes: Dividend rates are not guaranteed. Some smaller mutual companies do not publicly disclose dividend scale interest rates. Total payout reflects annual dividends to all policyholders. “—” indicates data not publicly available. |
||||||
📊 Why Highest Dividend Rate ≠ Best IBC Company
MassMutual offers the highest dividend rate (6.60%), yet Penn Mutual ranks #1. Why?
Three reasons:
- Paid-up additions flexibility — Penn Mutual offers more options to maximize early cash value
- Independent broker access — You can work with IBC specialists, not just company agents
- Long-term performance — When we analyze 10, 20, 30-year actual results, Penn Mutual consistently outperforms on cash value growth
The dividend rate is one component. Total policy performance is what matters for infinite banking success.
🎥 Watch: Lafayette Life vs Penn Mutual — Full Analysis
Side-by-side comparison using identical $100K premiums across 4 PUA splits. Lafayette leads early cash access by $37K; Penn Mutual leads 30-year accumulation by $700K.
Detailed Company Reviews: Our Top 10 Analysis
Below are in-depth reviews of each company, listed in our ranking order. Click any company name in the rankings above to jump directly to their review.
#1: Penn Mutual Life Insurance Company
⭐ TOP PICK
Founded: 1847 (178 years) | A.M. Best: A+ (Superior) | Recognition: Direct | 2026 Dividend: 6.00% | Total Payout: $300 million
Why Penn Mutual Ranks #1
Penn Mutual consistently delivers the best long-term cash value performance when policies are properly designed for infinite banking. Their combination of competitive dividend rates, maximum flexibility with paid-up additions, and independent broker access makes them ideal for Volume-Based Banking strategies.
The record $300 million dividend payout for 2026 — up from $265 million in 2025 and just $30 million in 2011 — demonstrates their aggressive commitment to policyholders even as a smaller mutual company.
Best Product for Infinite Banking:
Accumulation Whole Life (AWL) with maximum paid-up additions rider
Key Advantages:
- Maximum PUA flexibility — Industry-leading contribution options for cash optimization
- Independent broker friendly — Work with IBC specialists, not captive agents
- Preferred loan provisions — Policies 11+ years receive favorable loan treatment
- Living benefits included — Chronic illness rider on most permanent policies
- Proven long-term performance — Consistently outperforms on 10, 20, 30-year cash value analysis
Watch Out For:
Penn Mutual uses direct recognition, meaning dividend rates adjust when you have outstanding loans. However, their preferred loan provision after year 11 often creates positive arbitrage — your loaned cash value earns more than the loan interest rate. This is why direct recognition doesn’t hurt Penn Mutual’s performance.
“After analyzing hundreds of policies across dozens of companies, Penn Mutual consistently produces the best Year 10+ cash values when properly designed. Their flexibility makes them ideal for Volume-Based Banking strategies where you need maximum capital access while wealth continues compounding.”
📊 Real Client Example
35-year-old business owner with Penn Mutual Accumulation Whole Life:
- Annual Premium: $50,000 ($15,000 base + $35,000 PUA)
- Year 10 Cash Value: $487,000+
- Available for borrowing: $450,000+
- Death benefit: $850,000
This client can borrow against $450,000+ while the full cash value continues growing at dividend rates. That’s Volume-Based Banking in action — access to capital while wealth continues compounding.
#2: Lafayette Life Insurance Company
Founded: 1905 (120 years) | A.M. Best: A+ (Superior) | S&P: AA | Recognition: Non-Direct | 2026 Dividend: 5.75%* | Total Payout: $123 million
The IBC Community Favorite
Lafayette Life has become synonymous with infinite banking among IBC purists due to their non-direct recognition status and exceptional track record. Standard & Poor’s specifically highlights their “very strong financial security characteristics.”
Best Product for Infinite Banking:
Patriot Whole Life with maximum paid-up additions
Key Advantages:
- Non-direct recognition — Full dividend rates regardless of outstanding loans
- Lump sum capability — Excellent for large initial deposits from business sales or inheritance
- Proven IBC track record — Popular in infinite banking community for good reason
- Conservative management — Focus on long-term policyholder value over short-term gains
- Strong S&P rating — AA rating provides additional confidence
Considerations:
Lafayette Life’s dividend rate (5.75%) is lower than some competitors. However, for clients who prioritize non-direct recognition and plan to actively use policy loans, Lafayette often outperforms higher-rate direct recognition companies in real-world scenarios.
*2026 dividend rate not yet announced at time of publication; showing 2025 rate.
#3: Foresters Financial
Founded: 1874 (151 years) | A.M. Best: A (Excellent) | Recognition: Non-Direct | 2026 Dividend: 6.00%
The No-Exam Advantage
Foresters Financial offers the industry’s only participating no-medical-exam whole life insurance up to $400,000. This makes them uniquely valuable for infinite banking practitioners who want to avoid medical underwriting delays or have minor health concerns that might complicate traditional applications.
Best Product for Infinite Banking:
Advantage Plus II (20-Pay or Paid-Up at 100)
Key Advantages:
- No medical exam required — Up to $400,000 coverage without needles or tests
- Strong dividend history — 6%+ rates maintained consistently
- Non-direct recognition — Full dividend credit regardless of loans
- Guaranteed insurability rider — Future purchase options without underwriting
- Quick implementation — Start your banking system in weeks, not months
Considerations:
Foresters’ A.M. Best rating (A) is slightly lower than some competitors (A+ or A++). For most clients, this difference is negligible given their 151-year track record, but ultra-conservative clients may prefer higher-rated options.
“Foresters revolutionized our ability to help clients start infinite banking within weeks instead of months. The no-exam feature eliminates the biggest implementation barrier while still providing participating whole life benefits.”
#4: Massachusetts Mutual Life Insurance Company (MassMutual)
Founded: 1851 (174 years) | A.M. Best: A++ (Superior) | Recognition: Non-Direct | 2026 Dividend: 6.60% | Total Payout: $2.9 billion
The Industry Giant
MassMutual represents the gold standard in mutual life insurance. Their 2026 dividend payout of $2.9 billion — the company’s largest ever and their 158th consecutive year paying dividends — demonstrates unmatched financial strength and policyholder commitment.
While they don’t officially market “infinite banking” (they prefer to avoid association with aggressive marketing tactics), their whole life products are exceptionally well-suited for cash accumulation strategies.
Best Product for Infinite Banking:
Whole Life Legacy Series with 10-pay option, blended with paid-up additions
Key Advantages:
- Highest dividend rate — 6.60% for 2026, consistently industry-leading
- Unmatched financial strength — A++ rating maintained for decades
- Non-direct recognition — Full dividend credit regardless of loans
- Excellent paid-up additions — Flexible contribution options
- Brand recognition — Provides confidence for conservative clients
Why MassMutual Isn’t #1:
Despite the highest dividend rate, MassMutual ranks #4 because:
- Paid-up additions flexibility is slightly less than Penn Mutual
- Some MassMutual agents focus on traditional insurance sales rather than IBC optimization
- Long-term cash value performance, while excellent, trails Penn Mutual in our analysis
#5: Guardian Life Insurance Company
Founded: 1860 (165 years) | A.M. Best: A++ (Superior) | Recognition: Direct | 2026 Dividend: 6.25% | Total Payout: $1.7 billion
The Institutional Favorite
Guardian Life announced a record $1.7 billion dividend allocation for 2026 — the largest payout in their 165-year history — with a 6.25% dividend interest rate. This represents old-school mutual company excellence with modern policyholder commitment.
Best Product for Infinite Banking:
10-Pay Whole Life blended with paid-up additions
Key Advantages:
- Exceptional financial strength — A++ rating from A.M. Best
- Premium customer service — Industry-leading satisfaction ratings
- Flexible premium models — Multiple payment structures available
- Strong agent training — Many agents understand cash value optimization
- Record dividend growth — 6.25% for 2026, up from 6.10% in 2025
Watch Out For:
Some Guardian career agents push the L-99 product, which isn’t optimal for infinite banking cash accumulation. Ensure your agent designs for maximum cash value growth using their 10-pay product with paid-up additions, not traditional insurance sales metrics.
#6: OneAmerica (American United Life)
Founded: 1877 (148 years) | A.M. Best: A+ (Superior) | S&P: AA- | Recognition: Non-Direct | 2026 Dividend: Increased from 2025
The Innovation Leader
OneAmerica combines traditional whole life benefits with modern enhancements like their Indexed Dividend Option, providing potential for enhanced returns while maintaining whole life guarantees. Their 2026 dividend represents a 10-basis point increase — a 17% growth over the 2025 payment — continuing their nearly 150-year track record.
Best Product for Infinite Banking:
Legacy/Legacy 121 with IDO Rider
Key Advantages:
- Indexed Dividend Option (IDO) — Potential for up to double dividend returns based on market performance, without market risk
- Declining PUA loads — Reduced costs over time
- Non-direct recognition — Full dividend credit on all cash value
- Excellent flexibility — Multiple premium and benefit options
- Consistent dividend growth — Nearly 150 consecutive years
Watch Out For:
The declining paid-up additions feature can backfire if you reduce contributions too aggressively. Maintain adequate PUA funding for optimal cash growth and avoid the temptation to cut premiums too early.
#7: New York Life Insurance Company
Founded: 1845 (180 years) | A.M. Best: A++ (Superior) | Recognition: Direct | 2026 Dividend: 6.40% | Total Payout: $2.78 billion
The Legacy Giant
New York Life is the largest mutual company in the United States and one of the world’s largest life insurers. Their 2026 dividend payout of $2.78 billion is the largest in the company’s 180-year history.
Best Product for Infinite Banking:
Whole Life with Custom Whole Life Rider
Key Advantages:
- Unmatched longevity — 180 years of continuous operation
- Maximum financial strength — A++ rating, massive surplus
- Strong dividend rate — 6.40% for 2026
- Record payout — $2.78 billion, largest in company history
- Advanced markets expertise — Agents highly trained in high-net-worth strategies
Why New York Life Ranks #7 (Not Higher):
Despite exceptional financial strength and dividend performance, New York Life presents challenges for infinite banking practitioners:
- Agent model limitations — While not strictly captive, NYL agents typically prioritize NY Life products over objective comparison
- Less flexibility for IBC design — Paid-up additions options are less flexible than Penn Mutual or Lafayette Life
- Better for existing policyholders — If you already have a NYL policy, excellent. For new IBC implementations, we’d typically recommend other options first.
#8: Ameritas Life Insurance Company
Founded: 1887 (138 years) | A.M. Best: A (Excellent) | Recognition: Direct | 2026 Dividend: 5.10%
The Rapid Funding Specialist
Ameritas offers one of the most straightforward infinite banking products in the industry. Their Growth Whole Life policy can be fully funded in just 10 years, making it ideal for business owners and high-income professionals who want to front-load their wealth accumulation.
Best Product for Infinite Banking:
Growth Whole Life (10-Pay) with flexible paid-up additions rider
Key Advantages:
- Rapid funding capability — Policy paid up in 10 years
- Living benefits included — Access to death benefit for critical illness
- Competitive loan rates — Currently 5% fixed
- Simple underwriting — Straightforward application process
- Stable mutual company — 138 years of continuous operation
Considerations:
Ameritas’ 2026 dividend rate (5.10%) is lower than most competitors on this list. However, their policy design flexibility and rapid funding capability can compensate for the lower rate in certain scenarios, particularly for clients who want to complete funding quickly.
#9: Security Mutual Life Insurance Company of New York
Founded: 1886 (139 years) | A.M. Best: A- (Excellent) | Recognition: Non-Direct | 2026 Dividend: Not publicly disclosed | 2024 Payout: $21.5 million
The IBC Specialist
Security Mutual Life focuses specifically on personal banking strategies and infinite banking implementation. Their 132 consecutive years of dividend payments (since 1893) demonstrates remarkable consistency, even though they don’t publicly disclose specific dividend rates.
Best Product for Infinite Banking:
WL4U LP100 (Whole Life for You, Life Pay to 100)
Key Advantages:
- IBC-focused product design — Built specifically for personal banking strategies
- Non-direct recognition — Full dividend credit regardless of loans
- 132-year dividend streak — Unbroken since 1893
- Multiple product options — WL4U LP121, LP100, LP65, and 10-Pay versions
- Enhanced PUA rider — Maximize cash accumulation capability
Transparency Note:
Unlike larger mutual companies, Security Mutual Life does not publicly disclose their dividend scale interest rate. Their 2024 payout of $21.5 million to participating policyholders confirms they continue paying dividends consistently. For specific rate information, you’ll need to request a policy illustration directly.
#10: Mutual Trust Life Insurance Company
Founded: 1904 (121 years) | A.M. Best: A (Excellent) | Recognition: Non-Direct | 2026 Dividend: Not publicly disclosed
“The Whole Life Company”
Mutual Trust Life markets itself as “The Whole Life Company” and has designed specific dividend options for maximum cash accumulation. They understand infinite banking better than most companies in the industry, with over 100 years of dividend payments to participating policyholders.
Best Product for Infinite Banking:
Horizon with Maximum Accumulation Dividend Option
Key Advantages:
- Maximum Accumulation Dividend Option — Proprietary feature designed specifically for IBC
- IBC-trained philosophy — Company understands cash accumulation strategies
- Flexible paid-up additions — Multiple contribution options
- MEC avoidance built-in — Designed to prevent modified endowment contracts
- Non-direct recognition — Full dividend credit regardless of loans
Transparency Note:
Like Security Mutual Life, Mutual Trust does not publicly disclose specific dividend rates. Their dividends are set annually by the board based on company performance. For current rate information, request a policy illustration directly.
Recent Development:
Mutual Trust Life is now part of Pan-American Life Insurance Group. This hasn’t changed their mutual structure or dividend-paying status, but it’s worth noting for due diligence purposes.
🎯 Section Summary: Which Company Is Right for You?
- Maximum cash value + flexibility: Penn Mutual (#1)
- Non-direct recognition purist: Lafayette Life (#2) or OneAmerica (#6)
- Quick start without medical exam: Foresters (#3)
- Highest dividend rate: MassMutual (#4)
- Best customer service: Guardian (#5)
- Existing policy optimization: New York Life (#7)
- Rapid 10-year funding: Ameritas (#8)
- IBC specialist companies: Security Mutual (#9) or Mutual Trust (#10)
Why Northwestern Mutual Isn’t In Our Top 10
Northwestern Mutual pays more in dividends than any other life insurance company in America.
Their 2026 dividend payout of $9.2 billion — nearly $1 billion more than 2025 — is the largest in company history and the largest in the entire industry. They hold the highest financial strength ratings available to any U.S. life insurer: A++ from AM Best, AAA from Fitch, Aaa from Moody’s, and AA+ from S&P. They’ve maintained these ratings for 35+ consecutive years and have paid dividends for 155 consecutive years.
So why aren’t they in our Top 10 for infinite banking?
Three Reasons We Don’t Recommend Northwestern Mutual for IBC
1. Captive Agent Model Limits Your Options
Northwestern Mutual only allows their own career agents to sell policies. You cannot work with an independent broker who can:
- Compare NWM products objectively against competitors
- Design policies optimized for your specific IBC goals rather than company sales metrics
- Provide unbiased advice without career incentives tied to one company
This matters because infinite banking success depends heavily on policy design. When your agent can only sell one company’s products, their recommendations are inherently limited — even if they’re well-intentioned.
2. Cash Value Performance Gaps in Real-World Analysis
Independent analysis comparing 10-year actual performance to original illustrations found Northwestern Mutual had among the largest gaps between projected and actual cash value among major mutual companies — even while their dividend rate remained relatively stable.
The difference between illustration and reality matters more than the headline dividend number. A 5.75% dividend rate that consistently meets projections outperforms a higher rate that underdelivers.
3. Less Flexible Policy Design for IBC Optimization
Companies like Penn Mutual offer significantly more flexibility with paid-up additions riders, allowing for more customized policy designs that maximize early cash value accumulation. Northwestern Mutual’s products tend to be more rigid, which limits optimization for Volume-Based Banking strategies.
Industry practitioners also note that NWM policies perform well during the accumulation phase but can underperform when you start taking distributions — which is the entire point of infinite banking.
⚠️ Important Clarification
We’re not saying Northwestern Mutual is a bad company. They’re exceptional for:
- Clients who prioritize maximum financial strength above all else
- Traditional death benefit-focused whole life policies
- Those who already have NWM policies and want to continue with them
However, for clients specifically seeking to maximize cash value accumulation for infinite banking or Volume-Based Banking strategies, other mutual companies on our Top 10 list typically deliver better results — despite Northwestern Mutual’s larger total dividend payouts.
Already Have a Northwestern Mutual Policy?
If you have an existing NWM policy, don’t panic. You likely have a solid policy from a financially strong company. The question is whether it’s optimally designed for infinite banking.
We’re happy to review existing NWM policies and provide honest feedback on whether they’re structured for maximum cash value growth or if adjustments might help. Request a free policy review here.
For more details on Northwestern Mutual, visit our comprehensive Northwestern Mutual review.
Direct vs. Non-Direct Recognition: What Actually Matters
This distinction generates more confusion than any other aspect of infinite banking. Online forums are filled with heated debates, and many IBC “experts” insist you must choose non-direct recognition. Let’s cut through the noise with real analysis from 1,000+ policy implementations.
Non-Direct Recognition
Definition: Your policy earns full dividend rates on your entire cash value, regardless of outstanding policy loans.
How it works: Borrow $100,000 against your policy? Your full cash value (including the $100,000 collateral) continues earning dividends at the same rate as if you had no loan.
Companies on our list: Lafayette Life, Foresters, MassMutual, OneAmerica, Security Mutual, Mutual Trust
Popular belief: “Always better for infinite banking.”
Direct Recognition
Definition: The company may adjust dividend rates on the portion of cash value you’ve borrowed against.
How it works: Borrow $100,000 against your policy? That $100,000 may earn a different (often lower) dividend rate than your non-borrowed cash value.
Companies on our list: Penn Mutual, Guardian, New York Life, Ameritas
Popular belief: “Avoid for infinite banking.”
🎯 The Truth: Both Can Work Excellently
Our #1 ranked company (Penn Mutual) uses direct recognition.
Our #2 ranked company (Lafayette Life) uses non-direct recognition.
If recognition type were the deciding factor, this ranking would be impossible. The reality is more nuanced than the internet debates suggest.
Why Direct Recognition Doesn’t Hurt Penn Mutual
Penn Mutual offers a preferred loan provision that changes the math entirely:
- Policies with 11+ years of history receive enhanced dividend credits on loaned cash value
- In many cases, your loaned cash value earns more than the loan interest rate
- This creates positive arbitrage — you’re actually making money on the borrowed portion
This is why Penn Mutual consistently outperforms many non-direct recognition companies in long-term cash value analysis, despite being direct recognition.
When Non-Direct Recognition Matters More
Non-direct recognition becomes more important when:
- You plan to maintain large outstanding loans for extended periods
- You’re implementing aggressive leveraging strategies
- The direct recognition company doesn’t offer preferred loan provisions
- You want simpler math without variable dividend calculations
For these scenarios, Lafayette Life, MassMutual, or OneAmerica may be better choices.
What Actually Determines IBC Success
Based on our analysis of 1,000+ policies, here’s what matters most (in order):
- Policy design quality — How much premium goes to cash value vs. insurance costs
- Paid-up additions flexibility — Ability to maximize early cash accumulation
- Agent expertise — Understanding of IBC optimization vs. traditional sales
- Long-term dividend consistency — Track record through economic cycles
- Loan provisions — Including preferred loan rates for seasoned policies
- Recognition type — Yes, it matters, but less than the above factors
📊 Real-World Comparison
Two hypothetical clients, same age, same premium, same time period:
Client A: Non-direct recognition company, 5.5% dividend, poorly designed policy with minimal PUA
Client B: Direct recognition company (Penn Mutual), 6% dividend, optimally designed with maximum PUA
Result after 20 years: Client B has 15-25% more accessible cash value, despite using direct recognition.
The policy design difference overwhelmed the recognition type difference.
“I’ve seen people obsess over direct vs. non-direct recognition while ignoring policy design — like arguing about tire brands while the engine is missing. Get the design right first. Then, if you’re choosing between two equally well-designed policies, let recognition type be the tiebreaker.”
Our Recommendation
Don’t let recognition type be your primary decision factor. Instead:
- Focus on companies with proven long-term cash value performance
- Work with an agent who understands IBC policy design (not just traditional insurance sales)
- Request illustrations from both direct and non-direct recognition companies
- Compare actual projected cash values at years 10, 20, and 30
- Ask about loan provisions, especially for seasoned policies
The best infinite banking policy is the one that’s properly designed for your goals — regardless of recognition type.
For a deeper dive into this topic, read our complete guide: Direct Recognition vs. Non-Direct Recognition Explained
Policy Design Secrets: Why Company Selection Is Only Half the Battle
Here’s what the insurance industry doesn’t want you to know: A poorly designed policy from the #1 company will underperform a properly structured policy from the #7 company. Policy design expertise matters more than company selection.
This is why working with an IBC specialist — not a traditional insurance agent — is essential for infinite banking success.
⚠️ The Problem with Traditional Insurance Agents
Most life insurance agents are trained to sell death benefit-focused policies that maximize their commission, not your cash value. They learned about infinite banking from a YouTube video last month. They don’t understand:
- Paid-up additions optimization
- MEC avoidance strategies
- Term rider blending for cash acceleration
- Volume-Based Banking principles
Result: You end up with a policy that looks like infinite banking but performs like traditional whole life — slow cash accumulation, high insurance costs, disappointing results.
Important Design Elements for Infinite Banking Success
1. The Paid-Up Additions Ratio (The 60-80% Rule)
For maximum cash value accumulation, target 60-80% of your premium going to paid-up additions (PUA) rather than base premium.
Why this matters: Base premium pays for insurance costs and builds cash value slowly. Paid-up additions go almost entirely into cash value immediately, accelerating your banking system’s growth.
📊 Example: $50,000 Annual Premium
Traditional design (what most agents sell):
- Base premium: $40,000 (80%)
- Paid-up additions: $10,000 (20%)
- Year 1 cash value: ~$15,000
IBC-optimized design:
- Base premium: $12,500 (25%)
- Paid-up additions: $37,500 (75%)
- Year 1 cash value: ~$38,000
Same premium. Dramatically different results. The optimized design has 2.5x more accessible cash value in year one.
2. MEC Avoidance (The Line You Can’t Cross)
A Modified Endowment Contract (MEC) occurs when you fund a policy too aggressively relative to its death benefit. Cross this line and you lose the tax advantages that make infinite banking powerful.
MEC consequences:
- Policy loans become taxable distributions
- Early withdrawals face 10% penalty if under age 59½
- The “bank” in your banking system breaks
The solution: Stay just under MEC limits to maximize funding while preserving tax advantages. This requires precise calculations and ongoing monitoring — something traditional agents rarely understand.
An experienced IBC practitioner knows exactly how to push funding to the limit without crossing the MEC threshold.
3. Term Rider Blending Strategy
Using convertible term riders strategically allows you to:
- Minimize base premium — Reducing insurance costs
- Maximize PUA capacity — More room for cash-building contributions
- Maintain death benefit — Protection remains while optimizing cash growth
- Convert over time — Shift term to whole life as cash value grows
This “blending” technique is how experienced IBC practitioners supercharge early cash accumulation while maintaining appropriate death benefit coverage.
4. Front-Loading Strategy
Higher early funding dramatically improves long-term performance. The first 5-7 years of premium payments have disproportionate impact on your policy’s ultimate cash value due to compound growth.
Strategies for front-loading:
- 10-pay policies (fully funded in 10 years)
- Maximum PUA contributions in early years
- Lump-sum deposits when available (business profits, inheritance, bonuses)
- Overfunding to MEC limits then reducing
This is where Volume-Based Banking principles really shine — channeling maximum capital through your system early creates exponential long-term benefits.
5. Policy Loan Structure Planning
How you’ll use policy loans should inform policy design from day one:
- Frequent borrowing: Consider non-direct recognition or companies with preferred loan provisions
- Long-term leveraging: Loan interest rates and dividend spread become critical
- Occasional access: Recognition type matters less; focus on overall cash accumulation
🎯 Key Takeaway: Design Before Company
Before selecting a company, know your answers to these questions:
- What’s your target annual premium capacity?
- How quickly do you want the policy fully funded?
- How frequently will you access cash via policy loans?
- What’s your timeline — when do you need significant accessible cash?
- Are there lump-sum funding opportunities in your future?
The answers determine optimal policy design. The design determines optimal company selection. Most people do this backwards.
Questions to Ask Any Agent Before Working With Them
Use these questions to separate IBC specialists from traditional agents who learned about infinite banking last week:
- “What percentage of premium will go to paid-up additions in year one?”
Good answer: 60-80%. Red flag: “What are paid-up additions?” - “How do you structure policies to maximize cash value while avoiding MEC status?”
Good answer: Detailed explanation of 7-pay test and monitoring. Red flag: Blank stare. - “How many infinite banking policies have you personally designed?”
Good answer: Dozens or hundreds with specific examples. Red flag: “This will be my first.” - “Can you show me actual client policy performance, not just illustrations?”
Good answer: Yes, with anonymized examples. Red flag: “Illustrations are all we have.” - “Do you understand Volume-Based Banking or just traditional IBC?”
Good answer: Explains the difference and velocity of money concepts. Red flag: “What’s Volume-Based Banking?” - “Which companies do you work with and why?”
Good answer: Multiple mutual companies with specific reasoning for each. Red flag: “I only sell [one company].”
“The agent matters more than the company. I’ve seen Penn Mutual policies that underperform because the agent didn’t understand IBC design, and I’ve seen #8 ranked company policies that crush it because the agent knew exactly what they were doing. Find the right practitioner first, then let them guide you to the right company and design.”
Red Flags to Avoid
Walk away from any agent who:
- Focuses primarily on death benefit rather than cash value
- Can’t explain paid-up additions in detail
- Doesn’t know what MEC stands for
- Promises unrealistic returns (“12% guaranteed!”)
- Only represents one insurance company
- Learned about IBC from a podcast last month
- Pushes indexed universal life (IUL) as “better” for infinite banking
- Can’t provide actual client results beyond illustrations
📞 Ready for Expert Policy Design?
Our team has designed 1,000+ infinite banking policies since 2017. We represent all top mutual companies and specialize exclusively in cash value optimization — not traditional insurance sales.
What you’ll get in a free strategy session:
- Analysis of your specific financial situation and goals
- Custom policy design recommendations
- Side-by-side illustrations from multiple companies
- Honest assessment of whether IBC is right for you
Frequently Asked Questions
Which infinite banking company is the best choice?
No universal “best” exists — it depends on your age, health, income, and goals. Penn Mutual ranks #1 for long-term cash value performance, but Lafayette Life suits lump-sum depositors wanting non-direct recognition, and Foresters works for those avoiding medical exams. All 10 companies produce excellent results when properly designed.
How much money do I need to start?
Most specialists recommend $10,000-$15,000 annually, though effective policies can start at $5,000 for younger individuals. The better question: how much are you currently paying to banks in interest and fees? You can redirect a portion of that into your own banking system.
Direct recognition or non-direct recognition?
Both work. Our #1 pick (Penn Mutual) is direct recognition. Our #2 (Lafayette Life) is non-direct. Policy design, dividend consistency, and agent expertise matter more than recognition type. Don’t let this be your primary decision factor.
Why does Penn Mutual rank #1 over MassMutual’s higher dividend rate?
Dividend rate is one component. Penn Mutual wins on paid-up additions flexibility, independent broker access, long-term cash value performance (10, 20, 30-year actual results), and preferred loan provisions creating positive arbitrage after year 11. A 6.00% rate with maximum flexibility beats 6.60% with rigid structure.
How do policy loans actually work?
The insurance company lends you money using your cash value as collateral. Your cash value continues growing at dividend rates while you use the proceeds. With non-direct recognition or preferred loan provisions, you can profit from the spread between what you earn and what you pay — plus returns from deploying the capital elsewhere.
What’s the biggest mistake people make?
Quitting before year 7-10 when policies hit their stride. Other common mistakes: poor policy design (not maximizing PUAs), working with traditional agents instead of IBC specialists, unrealistic return expectations, and obsessing over recognition type while ignoring design fundamentals.
How does infinite banking perform during economic crises?
Better than most alternatives. During 2008, stocks lost 37%, real estate crashed 30%+, and banks froze lending. Meanwhile, mutual life insurance companies continued paying dividends and policyholders had guaranteed capital access. These are contracts, not investments — insurers must perform regardless of conditions.
Can I use indexed universal life (IUL) instead of whole life?
Stick with dividend-paying whole life. IUL lacks the guarantees that make infinite banking reliable — variable costs can increase, insufficient returns can cause policy failure with massive tax consequences. Whole life offers guaranteed growth, fixed costs, and 150+ years of consistent performance.
Captive agent or independent broker?
Independent brokers who specialize in IBC. Captive agents only sell one company’s products and may not understand cash value optimization. Independent specialists compare multiple carriers, focus on accumulation over death benefit, and educate rather than just sell.
What if I already have a whole life policy not designed for IBC?
Options include: policy review by an IBC specialist, restructuring with additional PUA riders, 1035 tax-free exchange to a better-designed policy, supplementing with a new IBC-optimized policy, or keeping as-is if it’s performing well. Request a free policy review.
How long until I can use my policy for banking?
Year 1-2: access 60-80% of premiums paid. Years 3-5: cash value typically exceeds total premiums. Years 7-10: policies hit their stride with accelerating growth. Year 10+: full Volume-Based Banking implementation with significant capital access. This assumes optimized design with maximum PUAs.
Is infinite banking only for wealthy people?
No. Proper policy design makes it accessible to middle-class families committed to long-term wealth building. Key factors: consistent income ($5,000-$15,000+ annually), 7+ year commitment, working with IBC specialists, and understanding it’s infrastructure — not a get-rich-quick scheme. The strategy scales from $10K/year to $500K/year.
Why isn’t Northwestern Mutual in your top 10?
Three reasons: captive agent model limits objective comparison, independent analysis shows larger gaps between illustrated and actual cash value than competitors, and less flexibility for IBC-optimized policy design. NWM excels at traditional death benefit policies, but for cash value accumulation, other mutuals typically deliver better results.
Getting Started: Your Implementation Roadmap
You’ve read the analysis. You understand the companies. You know policy design matters more than company selection. Now it’s time to take action.
Step 1: Assess Your Financial Readiness
Before implementing infinite banking, honestly evaluate:
- Income stability — Can you commit to premiums for 7+ years without financial strain?
- Current debt situation — High-interest consumer debt (credit cards, personal loans) should typically be eliminated first
- Emergency reserves — Do you have 3-6 months expenses accessible outside of this strategy?
- Long-term mindset — Can you resist the urge to quit during years 3-5 when growth feels slow?
- Education commitment — Will you learn how the strategy works rather than implementing blindly?
⚠️ Infinite Banking Is NOT Right for Everyone
This strategy works best for people who:
- Have consistent income they can commit long-term
- Think in decades, not months
- Value control and guarantees over maximum potential returns
- Understand it’s infrastructure, not an investment
If you’re looking for get-rich-quick returns or can’t commit to 7+ years of funding, infinite banking isn’t for you — and any honest practitioner will tell you that upfront.
Step 2: Calculate Your Premium Capacity
Simple exercise to determine realistic premium capacity:
Add up what you currently pay annually to financial institutions:
- Mortgage interest: $________
- Car loan payments: $________
- Credit card interest: $________
- Investment fees (401k, advisor fees, fund expenses): $________
- Bank fees: $________
- Other loan interest: $________
Total: $________
This represents money you’re already paying to “the system.” You can realistically redirect 30-50% of this amount into infinite banking premiums without reducing your lifestyle.
📊 Example Calculation
Current annual payments to financial institutions:
- Mortgage interest: $14,000
- Car loans: $6,000
- 401k/investment fees: $3,500
- Credit cards: $1,800
- Bank fees: $700
Total: $26,000 annually
Realistic IBC premium capacity: $10,000-$15,000 annually
This person can implement meaningful infinite banking while strategically reducing dependence on traditional financial institutions over time.
Step 3: Find the Right Implementation Partner
This is the most important step. The difference between a successful infinite banking implementation and a disappointing one almost always comes down to who designs your policy.
What to look for:
- Independent broker (not captive to one company)
- Specializes in infinite banking / cash value optimization
- Can show actual client results, not just illustrations
- Represents multiple top mutual companies
- Educates you on the strategy, not just sells a policy
- Understands Volume-Based Banking, not just traditional IBC
What to avoid:
- Traditional insurance agents who learned about IBC recently
- Captive agents who can only sell one company
- Anyone promising unrealistic returns
- Agents who focus on death benefit over cash value
- Anyone pushing IUL as “better” for infinite banking
Step 4: Get Custom Illustrations
Once you’ve found a qualified practitioner, request illustrations from 2-3 top companies based on your specific situation. Compare:
- Year 1, 5, 10, 20 cash values
- Paid-up additions ratio and flexibility
- Loan provisions and interest rates
- Break-even point (when cash value exceeds premiums paid)
- Internal rate of return at various time horizons
Don’t just look at dividend rates but also actual projected cash accumulation.
Step 5: Implement and Commit
Timeline expectations for infinite banking success:
- Year 1-3: Foundation building. Focus on consistent funding and education. Cash value grows but don’t expect to “feel” wealthy yet.
- Year 4-7: Momentum building. Cash value typically exceeds total premiums paid. Begin strategic policy loans for opportunities.
- Year 7-10: Acceleration phase. Compound growth becomes visible. Policy “hits its stride.”
- Year 10+: Full Volume-Based Banking implementation. Significant accessible capital. The strategy becomes self-evident.
The key: Don’t quit. The clients who succeed are the ones who fund consistently and think in decades, not months.
Conclusion: Your Path to Financial Independence
Here’s what we know after 70+ combined years in financial services:
The traditional financial system is designed to extract wealth from individuals and families while enriching institutions. Banks use the exact strategies they tell you to avoid, then loan your deposited money back to you at higher rates while paying you nothing.
Infinite banking with properly designed whole life insurance flips this dynamic:
- You become the bank, capturing the interest you normally pay to others
- Your wealth grows contractually — guaranteed — regardless of market conditions
- You maintain liquidity and control while building generational wealth
- The strategy compounds over time, becoming more powerful each year
- You escape the system that keeps most people trapped
“The best time to start infinite banking was 10 years ago. The second best time is today. Every year you delay is another year enriching banks instead of building your own financial foundation.”
Ready to Build Your Own Banking System?
Schedule a free strategy session with our team. No obligation. No pressure. Just honest guidance from practitioners who’ve helped 1,000+ clients implement infinite banking.
What You’ll Get in Your Free Consultation:
- Analysis of your specific financial situation
- Custom policy design recommendations
- Side-by-side company comparisons
- Realistic timeline and expectations
- Answers to your specific questions
- Honest assessment of whether IBC is right for you
Or call us directly: 877-787-7558
📚 Continue Your Education
Not ready for a consultation? Keep learning with these resources:
- The Self Banking Blueprint — Free ebook on whole life insurance as a wealth strategy
- Live Rich Die Rich — Barry Brooksby’s book on Volume-Based Banking
- Becoming Your Own Banker Review — Analysis of Nelson Nash’s original IBC book
- Our YouTube Channel — Educational videos on infinite banking strategies
Questions about anything in this guide? Leave a comment below or contact us directly. We read and respond to every message.
87 comments
Donna
I am interested in a $300K-500K policy. A am a resident of GA and would like to have a list of available agents
Steven Gibbs
Hello Donna,
You can visit our Pro Team page on our website.
I recommend that if you’re interested in Infinite Banking, connect with either Denise@insuranceandestates.com or Barry@insuranceandestates.com by emailing or scheduling on their respective calendar there.
To your success!
Steve Gibbs for I&E
Steven Gibbs is a licensed insurance agent, and the following agent
license numbers of Steven Gibbs are provided as required by state law:
Resident License; AZ agent #17508301,
Non-resident Licenses: TX agent #2273189, CA agent #0K10610,
LA agent #769583, MA agent #2049963, MN agent #40563357,
UT agent #655544.
Sonya McKinney
I am a licensed broker in Ohio. I am interested in contracting with some of these compinies that have whole life for infinite banking purposes. I also was sondering if these companies train you to write the infinite banking policies.
Steven Gibbs
Hi Sonya, thanks for connecting. I forwarded your inquiry to Barry Brooksby who has an agent training program and can address any questions. You can also reach out to him at barry@insuranceandestates.com.
Best, Steve Gibbs for I&E
Steven Gibbs is a licensed insurance agent, and the following agent
license numbers of Steven Gibbs are provided as required by state law:
Resident License; AZ agent #17508301,
Non-resident Licenses: TX agent #2273189, CA agent #0K10610,
LA agent #769583, MA agent #2049963, MN agent #40563357,
UT agent #655544.
Danny
I just started my own business. I am interested in learning how to get into ibc and grow my business at the same time. Is that possible. I live in Oregon. And I’m just 35. Healthy and my family has a great life expectancy so far. I don’t have a lot of money or any schooling that I can remember that would be useful in my situation. That being said. I understand the concept fully. I have heard about ibc throughout the last year or two. And I feel I can competently invest in my life without being confused about it. I’ve been thinking about it and I’m ready. If there are any reasons why I can’t implement the request about building my company while preparing for my future passing. I would like to hear anything you have to help me out with. Thanks.
Danny peck, owner/manager Dplean LLc.
A mobile mechanic service/dealer. Working for a brighter future today. After fixing the problems from yesterday.
Steven Gibbs
Hello Danny, thanks for checking in. I recommend you reach out to our IBC expert Barry Brooksby to see what options are available to you at this point. You can email barry@insuranceandestates.com to request a call.
To your success,
Steve Gibbs for I&E
Steven Gibbs is a licensed insurance agent, and the following agent
license numbers of Steven Gibbs are provided as required by state law:
Resident License; AZ agent #17508301,
Non-resident Licenses: TX agent #2273189, CA agent #0K10610,
LA agent #769583, MA agent #2049963, MN agent #40563357,
UT agent #655544.
Brian
Hi, I am located in Central Virginia and an very interested in IBC. I have done my own research, and believe i understand the concept.Is there someone in my region that can educate me further on the subject?
SJG
Hi Brian, thanks for connecting.
Our experts are licensed in all 50 states so perhaps a good first step is to email Denise Boisvert if you haven’t yet connected with her to request a call at denise@insuranceandestates.com.
Best, Steve Gibbs for I&E
Steven Gibbs is a licensed insurance agent, and the following agent
license numbers of Steven Gibbs are provided as required by state law:
Resident License; AZ agent #17508301,
Non-resident Licenses: TX agent #2273189, CA agent #0K10610,
LA agent #769583, MA agent #2049963, MN agent #40563357,
UT agent #655544.
Jery W.
Yes, I’m very interested in IBC. I’m currently 46 and live in Plano, Texas (Dallas suburb). Do you know of an Agent/Advisor in this area that could help me get my IBC started? Thanks.
SJG
HI Jery, I believe Denise has reached out to you.
Best, Steve Gibbs for I&E
Steven Gibbs is a licensed insurance agent, and the following agent
license numbers of Steven Gibbs are provided as required by state law:
Resident License; AZ agent #17508301,
Non-resident Licenses: TX agent #2273189, CA agent #0K10610,
LA agent #769583, MA agent #2049963, MN agent #40563357,
UT agent #655544.
Gilbert Herring
Hello
I’m currently trying to find a Whole life policy thru the IBC concept that can maximize the High Cash Value products without crossing into MEC 7.
I currently live in Maryland and I’m 62 yrs and in good health not on any medications and would like to get in touch with an Agent or Advisor to discuss the best options for my future situation
Thanx in advance
Gil Herring
SJG
Hello Gilbert, thanks for connecting. Go ahead and reach out to Denise Boisvert by emailing her at denise@insuranceandestates.com to schedule a video conference to review any available options.
Best, Steve Gibbs, for I&E
Steven Gibbs is a licensed insurance agent, and the following agent
license numbers of Steven Gibbs are provided as required by state law:
Resident License; AZ agent #17508301,
Non-resident Licenses: TX agent #2273189, CA agent #0K10610,
LA agent #769583, MA agent #2049963, MN agent #40563357,
UT agent #655544.
Joseph Cruz
Good Day,
Iam living in Guam a Territory of the United States out in the Pacific.Would I be able to have access to any of the Whole Life insurace Companies living on Guam..please let me know..
Respectfully
Joseph
SJG
Hello Joseph, sorry for the delayed response. The rule is you have to be in the U.S. or Puerto Rico with U.S. citizenship or green card.
Best, Steve Gibbs for I&E
Steven Gibbs is a licensed insurance agent, and the following agent
license numbers of Steven Gibbs are provided as required by state law:
Resident License; AZ agent #17508301,
Non-resident Licenses: TX agent #2273189, CA agent #0K10610,
LA agent #769583, MA agent #2049963, MN agent #40563357,
UT agent #655544.
Domenic
Barry, I’ll preface the following comment by saying that I appreciate all the work you do in creating this content to educate the public on this and so many other topics. I am also a partner with New York Life.
That said, I find it interesting that New York Life is not on this list if you’re being objective. You mentioned in previous comments that New York Life is on your top 10 dividend paying whole life companies but not top 10 for IBC. Seems to me, based on your criteria: Mutuality, Performance History, Stability, Flexibility, and Overall Suitability…New York Life is superior to most of, if not all of the companies on this list when it comes to these infinite banking criteria.
Of course, NYL is a mutual and a non0direct recognition company. NYL has a 177 year history with some of the most reliable policy illustrations in the industry. Policies designed for banking build cash value build faster in early years compared to our competitors. You, yourself rate Ney York Life in your top dividend paying companies. With 177 years and a 100 comdex rating, NYL stands head and shoulders above the other companies on this list when it comes to stability. With PUA purchases up to 10X annual standard base premium, and a Custom Whole Life suite with as little as 5 year paid up policies ranging up to paid up by age 75, NYL offers maximum flexibility. Finally, when it comes to overall suitability, NYL agents are trained on whole life banking early on. We even have a specific illustration concept called “Bank on Whole Life.” While this may not be as robust an example as some policy owners may want to use their policy, it does demonstrate the company’s commitment to the concept. So, what keeps New York Life off of this list exactly?
With New York Life, like any other carrier, the agent will make all the difference when it comes to making sure the policy is designed in a way that best fits the client’s objectives. Thanks for reading!
Insurance&Estates
Hello Domenic and thanks for connecting. Actually, Barry is our resident IBC expert but he does not write the articles. These are created by a number of our team members based upon our priorities which do include a preferance for non captive carriers because they offer flexibility for agents seeking to provide the best options for consumers. There are many top mutual companies to be sure and sometimes when folks work with a particular provider they want us to change our ratings. These preferences and rankings are largely a matter of our collective opinion based upon our own established criteria and having worked with numerous companies.
Best to you in your endeavors.
Steve Gibbs, for I&E
William
I find it interesting reading your responses to why Northwestern Mutual isn’t on your list. They are literally #1 in this space (AAA credit rating with stable outlook, never missed a dividend payment in 165+ consecutive years, pays more in dividends each year then the next 3 competitors COMBINED at $6.5 billion) but because you’re not affiliated with them you can’t sell them. Of course they wouldn’t make your list! What you failed to mention is that anyone affiliated with Northwestern can sell any of these other companies AS WELL as NM. You should at least give these people the real facts. NM’s mortality margin ratio is the best in the industry, has the lowest expense ratio and the highest investment yield. In the end it’s all about structure, maximum over funded. You should also mention that the dividend interest rates aren’t regulated. Tell people to run the exact policies side by side from different companies and see what the cash value is at the same compared age. The fact that they aren’t even on this list at all is alarming. The amount of misinformation out there is unfortunate. They don’t make the list because they’re captive… did you know that if someone affiliated with NM sold a MassMutual policy they’d make more money in commissions? Don’t get me wrong, your list has some amazing companies obviously but it’s mind blowing that THE best company didn’t even make the cut. Northwestern Mutual, MassMutual, Guardian Life, and NY Life are the leading 4, there is no debate.
SJG
Hi William, my uncle who has passed was a top producer at NW Mutual for many years. While there are some things to like about the company, there are other things, like their loan rates that aren’t as impressive (your comment on total dividends paid isn’t that relevant in my opinion) when considering the rates and when performance is weighed against some of the competition. Also, we both know that most of the top mutual whole life companies have an impressive track record for paying dividends so… Believe it or not, you’re not the first NW Mutual guy to get upset and weirdly I’ve only experienced this elsewhere with Guardian:) Both are top companies in the space and yet understand that this is our criteria which is based upon our opinion, and one of our priorities is whether the company is captive or non-captive. Point being, if I wanted to be selling NW Mutual then I would be doing exactly that and I don’t so… Still, if you’re selling whole life you’re doing a good thing, keep up the great work.
Ryan Kempkens
Hello, I’m a new agent with New York Life, after reading Becoming Your Own Banker by Nelson Nash I made a career change. Is flexibility the main reason why NYL didn’t make this list? It seems I might be best off to become independent as soon as possible would you agree?
Insurance&Estates
Hello Ryan and thanks for commenting. You’re correct, New York Life is a fine company but captive and we tend to prefer companies that offer flexibility for consumers. If I were starting out I would gravite toward non-captive mutuals. We do offer some agent programs so let us know if we can help further.
Best, Steve Gibbs for I&E
Alex
Hello, I live in New Hampshire and am looking to get connected with an agent for more information.
Insurance&Estates
Hello Alex, we work all over the country so if you’re interested in more information you can connect with our high cash value expert Barry Brooksby by emailing him at barry@insuranceandestates.com.
Best, Steve Gibbs for I&E
Scottie
What’s your preference or pros and cons between Forester and Lafayette Life?
Insurance&Estates
Hello Scottie, these kinds of questions are tricky in the context of blog comments. Lafayette and Foresters are both good companies; however, we’ve worked much more with Foresters in recent years. To get clearer information, the best next step is to schedule a call which you can do by emailing Barry Brooksby at barry@insuranceandestates.com.
Best, Steve Gibbs for I&E
bob
which companies are in NEW YORK to sell IBC ?
Insurance&Estates
Hi Bob, at this point to my knowledge Mass Mutual and Foresters are available there but Foresters may be pulling out in the very near future so time may be of the essence there. To get more specific information, you could request a call with Barry by emailing him at barry@insuranceandestates.com.
Best, Steve Gibbs for I&E
Jerry Patton
Trying to find a company to work with. Looking for prices per month. How soon could I get a loan if I stock pile the policy in the beginning. I have term looking for a more solid way of banking.
Insurance&Estates
Hello Jerry, if you’re looking for a company to work with, our IBC expert Barry Brooksby is highly experienced and you can see he gets rave reviews. You can request a call by emailing him at barry@insuranceandestates.com.
Best, Steve Gibbs, for I&E
Andrew Adkins
I am looking forward educating and helping others bank on themselves, may I have someone reach out about the contracting process?
Insurance&Estates
Hi Andrew, I believe Barry reached out to you about his agent training which I advise you to consider.
Best, Steve Gibbs for I&E
Joseph DELLO RUSSO
Looks like this website is still being managed. I’m just starting out and need some guidance. Is Barry still available and still a good point of contact?
Insurance&Estates
Hello Joseph, yes we are not only managing this site but are committing to providing educational content and exceptional service focused on high cash value life strategies:) Yes, Barry is a great point of contact and I forwarded your request to him. If you haven’t yet connected, go ahead and email him at barry@insuranceandestates.com.
Best, Steve Gibbs for I&E
Wendell
Hello How long would I have to wait until I make a withdraw from my policy
Insurance&Estates
Hell Wendell, good question and the answer depends on policy design and goals to an extent. I recommend you discuss this and similar questions with our IBC expert Barry Brooksby.
You can e-mail him at barry@insuranceandestates.com to request a call.
Best, Steve Gibbs for I&E
Paula Johnson
I’d like to purchase a policy for my daughter who is 29. The goal is to retire before 66. She currently has a whole life, term, and Roth IRA. She may not be in the most aggressive vehicles. Northwestern Mutual is one of her companies. don’t remember others.
Insurance&Estates
Hi Paula, I’m not sure if you’ve connected with one of our experts yet; however, I recommend you start with Barry Brooksby be e-mailing him a request to connect at barry@insuranceandestates.com.
Best, Steve Gibbs for I&E
Jane
I found the infinite banking concept very interesting. However, will I loose the tax write off benefit from mortgage interest if I borrow from my own life insurance?
Insurance&Estates
Hi Jane, good question and yes if you were to finance a personal residence through your policy, you would lose the interest deduction. Thus, we wouldn’t generally recommend that move to someone with good credit who could qualify for good financing. In this circumstance an IBC policy loan would be more advantageous for investment real property for many reasons discussed in our various real estate webinars.
Best, Steve Gibbs for I&E
DAVID REY
how exactly do you buy an infinite banking policy? Can you set it up online or do you have to talk to an insurance agent?
Insurance&Estates
David,
Due to the customization of the policy it is recommended that you speak to an infinite banking practitioner. You can reach Barry Brooksby at barry@insuranceandestates.com for specific policy information.
Best, I&E
John
I have a couple policies with NYL that I’ve had for years, my agent is somewhat familiar with the concept. I would like to know if you have someone very familiar with IBC that could advise me?
Thanks!
Insurance&Estates
Hello John and thanks for commenting. If you have an agent, you may want to discuss the concept in more detail with him/her. If you’d like a second opinion, you can connect with Barry Brooksby at barry@insuranceandestates.com and ask for a phone call.
Best, Steve Gibbs for I&E
Barry
Great writeup and execution of the IBC Concept. I met Nelson and worked the IBC concept back in the early 90’s -2010 era. It is a solid Life Changer and I like how your firm handles the educational side for the Consumer!
I am looking to get back into the business and may be getting in touch with you to discuss the IBC method.
Barry
Insurance&Estates
Sounds good Barry and thanks for commenting – nice to hear of your experience with IBC and meeting Mr. Nash. When you’re ready, the guy to talk to is also Barry (Brooksby) and you can e-mail him at barry@insuranceandestates.com.
Best, Steve Gibbs for I&E
Donna Grothen
I live in Nebraska am very interested to set this up for my family
Insurance&Estates
Hi Donna,
Our IBC Practitioner Expert, Barry Brooksby, can help you. I suggest that you connect with him directly at barry@insuranceandestates.com to schedule a call.
Best, Steve Gibbs, for I&E
D. massey
Looking for an honest answer. I have read alot on infinite banking and believe I understand the concept enough to become tenacious with going forward . My confusion is , is it worth wild to start this at age 50 ? No harm in an honest answer
Insurance&Estates
Hello, my honest answer is that IBC is absolutely something that can work well for someone at age 50. The key is using the PUA rider and design to add more cash to the policy and expedite cash value growth. A lot would depend on what you’re able affort and other factors such as your overall health. To explore further, connect with Barry at barry@insuranceandestates.com.
Best, Steve Gibbs for I&E
Joshua
I currently have State Farm. Is this not a good option?
Insurance&Estates
Hello Joshua, I can only say that State Farm is captive and not a company that we’ve encountered having dealt with numerous infinite banking products and experts. The question you need to ask is whether it is really a high cash value policy, having been designed and implemented for cash value accumulation. Reach out to Barry at barry@insuranceandestates.com to explore this further.
Best, Steve Gibbs for I&E
Sam
Correct me if I’m wrong the problem with mass mutual they don’t allow policy loans the first year.
Insurance&Estates
Hello Sam, thanks for commenting. Barry Brooksby works regularly with Mass and would be best to answer your question. Feel free to e-mail him directly at barry@insuranceandestates.com.
Best, I&E
John smith
Is there a cost to having your company help with setting up an insurance policy for IBC?
Insurance&Estates
Hello John, we do help people regularly set up IBC polices. We get paid by the insurance company as a commission for setting up so there is no fee coming directly from the customer. To get started, feel free to connect with jason@insuranceandestates.com.
Best, Steve Gibbs, for I&E
Michael Bradley
Can you put me in connect with and send me a list of IBC expert insurance brokers in NEW JERSEY that offer whole life insurance utilizing the Infinite Banking concept. Interested in getting a Whole life policy that maximizes and builds cash value fast.
Insurance&Estates
Hello Michael, our Pro Client Guides are licensed in NJ and can help. I’ve forwarded your request to Jason Herring and either he or Barry Brooksby will reach out to you.
Best,
Steve Gibbs for I&E
Carlos H
How do you become an independent licensed insurance agent? Is there a website I can go to if I wanted to become more knowledgeable on this IBC Policies and offer them to people I know or family members?
Insurance&Estates
Hello Carlos, Jason Herring can help you with this and I suggest you connect with him at jason@insuranceandestates.com.
Best, Steve Gibbs for I&E
Robert Stutes
I am very interested in getting more information on this IBC system.
Thank you.
Insurance&Estates
Hello Robert, thanks for commenting…you one of our IBC experts has most likely reached out to you already. If you haven’t yet connected, e-mail barry@insuranceandestates.com and send a contact phone number and best time to call.
Thank you. I&E
Irving Babbitt
Can you put me in connect with and send me a list of IBC expert insurance brokers in Texas that offer whole life insurance utilizing the Infinite Banking concept. Interested in getting a Whole life policy that maximizes and builds cash value fast. I am very Interested Forester.
Insurance&Estates
Hello Irving, our IBC expert Barry is licensed in TX and you’re welcome to connect with him if you haven’t already. Go ahead and reach at barry@insuranceandestates.com.
Best,
Steve Gibbs for I&E
Daniel Grumelli
Quick question. Is it possible to set up an infinite banking policy taking into account that I am not a resident in the US?
Insurance&Estates
Hello Daniel, thanks for commenting. I believe one of our self banking experts has already reached out to you. If not, connect with barry@insuranceandestates.com.
Best,
Steve Gibbs for I&E
JD Destajo
I have an IUL with Transamerica and a whole life insurance from new york life. Im interested in consolidating my policies and if it can be replaced by one of these other companies the better.
Im also interested in the critical care insurance and living benefits. Would you guys be able to help out?
Kevin Attride
Would you provide the evaluation matrix you created in ranking these top 10? I would like to better ascertain their strengths and weaknesses when compared to each other.
Kevin
Insurance&Estates
Hello Kevin, thank you for reading and commenting. We really didn’t use a “matrix” per se in reaching our conclusions, as this review is somewhat subjective and is largely based upon our collective experience working with various companies. I’ll refer you back to excerpt of the article if you’d like to consider our criteria.
Best, Steve Gibbs for I&E
Excerpt: […it’s helpful to know that the criteria for our Top 10 Infinite Banking companies is identical to the criteria for our Top 10 Dividend Paying Life Insurance Companies – due to the fact that we value the same criteria for both (stability, performance, flexibility, etc.)]
K
Can you put me in connect with and send me a list of insurance brokers in Georgia that offers whole life insurance utilizing the Becomingyourownbank and BOY concept. Interested in getting a Whole life policy which maximizes cash value through PUAR. Interested in brokers who sale WL policies through non-direct recognition carriers such as Security Mutual, Lafeyette, American United, and Forester.
Insurance&Estates
Hello, I’ve forwarded your information to our National Sales Director, Jason Herring. Thanks for your confidence.
Best. Steve Gibbs for I&E.
Paul Wawrzynski II
Your reason for not listing northwestern mutual is they have captive agents. Are there any other reasons ?
Insurance&Estates
Hi Paul, thanks for your comment. Yours is not the first we’ve had about NW Mutual. Honestly, there are many great companies and it is tough to narrow down a “criteria” for selecting “our best” picks. Truly, this is a subjective set of criteria that boils down to our opinion. We tend to favor non-captive companies because they, in keeping with our mission, favor freedom of choice and unbiased advise for the consumer. We also tend to favor lean companies that perhaps spend less on marketing, funneling more money back to policy holders. Anyhow, these picks are truly just our opinion so if you’re a NW Mutual fan, feel free to pursue their products with an experienced adviser there, as they are an outstanding company to be sure.
Best,
Steve Gibbs, for I&E
Paula Johnson
My daughter has Northwestern Mutual. I am not sure how aggressive her policy is or the maximization of PUA. Can the balance be changed mid stream? I would still like to gift her a 2nd whole life policy that I fund.
Insurance&Estates
Hi Paula, the PUA amount would be connected the death benefit and overall policy design. You may need a NW Mutual agent to help with that specific policy and we do not currently work with them. I did send you an e-mail to connect with Barry concerning your other request.
Best, Steve Gibbs for I&E.
Michael Addison
As a licensed independent agent, I would like more info on contracting with some of the carriers in your article. Very informative Article.
Manuel Chavez
Would like to request information regarding contracting for these or any insurance companies as agent to provide and offer the type of insurance product as an independent agent. I have license and would like to promote and provide this type of product to clients if possible.
Insurance&Estates
Manuel,
Please be on the lookout for our reply using the contact info you provided.
Sincerely,
I&E
James Corr
Good article but why were New York Life and Northwestern Mutual excluded from the list?
Insurance&Estates
James,
We excluded NY Life and Northwestern Mutual because they did not make our favored top 10 companies to use for infinite banking. Northwestern Mutual requires captive agents. We like NY Life and have them listed as one of our top 10 dividend paying whole life insurance companies.
Sincerely,
I&E
Adolfo Jimenez
Thanks for the article, I understand why Northwestern Mutual is not included in this list but it’s still not clear to me why New York life is not. Can you explain? thanks
Insurance&Estates
Adolfo,
We excluded NY Life and Northwestern Mutual because they did not make our favored top 10 companies to use for infinite banking. Northwestern Mutual requires captive agents. We like NY Life and have them listed as one of our top 10 dividend paying whole life insurance companies.
Sincerely,
I&E
Eric
I would like to see some illustrations for a 400,000 20 pay plan. I am 54 years old. How much premium annually could I put down and stay non-mec
Insurance&Estates
Hi Eric,
We will reach out to you shortly with some additional information. Thanks for stopping by.
Sincerely,
I&E
Garry Freeman
Like Eric I would like to see some illustrations for a 300,000 10 or even 7 pay plan. I am 58 years old, and again like Eric how much premium annually could I over fund and stay non-mec
Will
Recently turned 49 and Saw quote for 250000 20-pay. Is it possible to accelerate the pay-up after the 20-pay is in effect or must I simply start with 10-pay option with a lower DB (if necessary) in order to really maximize CV ?
Insurance&Estates
Hello Will and thanks for commenting. To get the best answer for your question, I suggest you connect with Barry Brooksby, our high cash value life expert, by e-mailing him directly at barry@insuranceandestates.com.
Best, Steve Gibbs, for I&E
Tim
Do any of the Companies that you know of allow
Sales by phone (not face to face)
I live in a remote area
This would be for IBC or BOY
Thanks for the help
Tim
Insurance&Estates
Tim,
Most companies allow sales over the phone or skype if you live in a remote area. We sent you an email with some more information on using cash value life insurance for infinite banking.
Sincerely,
I&E