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What is the Infinite Banking Concept? [The Ultimate Guide]

Fact Checked by Jason Herring & Barry Brooksby
Licensed Agents & Life Insurance Experts.
Insurance and Estates, a strategic life insurance provider composed of life insurance professionals, is committed to integrity in our editorial standards and transparency in how we receive compensation from our insurance partners.
Infinite Banking

Often people refer to the Infinite Banking Concept (IBC) as synonymous with dividend paying whole life insurance. While it is true that a whole life policy is key component and to be sure a powerful asset, it is not infinite banking in and of itself. Infinite Banking entails a broader strategy which, as a starting point, asks you to consider whether you’re using your money in the most advantageous way possible?   Answering this question, beckons a few more considerations.  Are you thinking about money like a trained consumer or a sophisticated banker?  More on this later.

For now, understand that bankers leverage money exponentially to create limitless cash flow.  This is a critical paradigm shift about money, to begin to see the need to shift away from using your money like a consumer and toward acting like a bank for your own benefit and that of your loved ones.  This shift, in a very real sense, positions you to become your own banker.  From this vantage point, you begin to harness the utility of money as a means of wealth building and legacy creation.

In the paragraphs that follow we will do our best to guide you in this paradigm shift in a brazen attempt to break you out of a consumerism mindset concerning money and toward becoming your own banker.

The information on this page to follow is therefore presented in a comprehensive, yet approachable way in order to prod you away from the sort of typical financial advice (perhaps going all the way back your first paper route or ice cream stand) that has beckoned you give up control on your money to someone else.

Consider a world where you control your money and invest in assets, while simultaneously building on a guaranteed foundation of continual compound interest growth.

Sound too good to be true? Join us on a short journey to follow and decide for yourself.

What is Infinite Banking?

Imagine making high ticket purchases like cars and real estate without having to go through the long and tedious process of applying for a loan (which often includes handing over stacks of personal and financial information) and waiting to be approved?

Even better yet, what if there was a way to use money to make these purchases – as well as cash flow investments – while also generating interest on the “same” dollars?

There is! And it can be done through a strategy that is known as the infinite banking concept, where the goal is to take back control of your own money, think like a banker, and create a legacy for your future generations.

Why Generational Wealth Fails – And What to Do About It

Most people want to both make and save money. But unfortunately, most people also go about doing so in the wrong way. That’s because many of the “traditional” saving and investing methods that are learned from a young age promote a scarcity mindset and lead you to believe that cutting back on lattes and other expenses will eventually make you wealthy.

Sadly, though, you cannot “save your way to wealth.”

To be clear, living within your means is sound advice. But unless you truly maximize your funds, much of your wealth can “leak” out of your portfolio by way of taxes, interest on loans, and other “gaps.”

Interest Payments

In fact, one of the biggest hurdles that many people face in achieving financial independence – and a fair amount don’t even realize it – is that a large portion of their take-home income is spent on interest payments on the money they have borrowed. (Consider how much each month you spend on credit card interest.)

So, by the time you pay your income taxes, along with your other living expenses, and interest payments, there is little – if anything – left to save and invest. This can have a long-term effect, too, because if there is little or nothing invested now, long-term generational wealth will be nearly impossible to attain.

Generational Wealth

Generational wealth refers to financial assets that are passed down by one generation of a family to another. These assets can include any number of financial-related vehicles, such as:

  • Stocks and bonds
  • Cash
  • Real estate
  • Family business

Unfortunately, though, most families lose their wealth within just three generations – even once affluent families like the Vanderbilts, whose fortune was estimated to be $100 million in 1877 (which is $200 billion in today’s dollars) had whittled away most of the assets in less than 80 years. (1)

There is a myriad of reasons why passing on wealth through the generations might fail. These can include:

  • Taxes
  • Bad investment decisions
  • Inflation
  • Natural dilution of assets that are shared
  • Younger family members who are unwilling and/or ill-prepared to carry on the responsibility

But the good news is that there is a viable way to create more liquidity, recover more cash, have much more predictability (no matter what the stock market does), and to “own” the system rather than becoming part of a system that you can’t control.

You can also pass along a legacy – not just to your immediate heirs, but for many generations to come…and even though affluent families like the Rockefellers have used these same methods, you don’t have to be ultra-wealthy in order to use the infinite banking concept.

Is Infinite Banking a Scam?

ANSWER: NO, the infinite banking concept is not a scam. A scam is some sort of fraud, such as the current FTX fraud.

Rather, Infinite banking is a concept that explains a specific “how to” of using your money to work for you.

And you don’t even need a whole life insurance policy to make it work. The general concepts of the strategy can be used in conjunction with other savings vehicles, although the best tool to implement the strategy is cash value life insurance.

Understanding the Infinite Banking Concept

The infinite banking concept is not a new strategy. In fact, it has been used for over a century by some highly recognizable names to start their companies and/or to keep them afloat.

Just some of these companies include:

  • Walt Disney (Disney World)
  • Ray Kroc (McDonald’s)
  • J.C. Penney (Penney’s department stores)

Nelson Nash

infinite banking concept reviewBut the infinite banking term itself was actually popularized by Nelson Nash in his influential book titled, “Becoming Your Own Banker.” This short book of approximately 90 pages was published in 2000, after Nash had already been practicing infinite banking for around 20 years.

Over time, the tools and strategies that are components in the infinite banking concept have evolved – allowing the strategy to be used more frequently by individuals and businesses. With more options to choose from now, it is also possible to more closely “customize” a plan that works for the specific needs and goals of investors and retirees.

However, with all of these “moving parts,” it can also be more challenging to create the right infinite banking plan for you, unless you have a deep understanding of how the concept works, and/or you work with a financial professional who does.

How Infinite Banking Works

Infinite banking requires that we “house” our money somewhere. And where we choose to place our money becomes our “bank.” What has been discovered is that the best place to store your money is one that provides guaranteed growth, with tax advantages. So that is where cash value life insurance comes in.

The infinite banking concept uses a certain type of cash value life insurance that is offered through mutual insurance companies and that provides guaranteed growth, as well as dividend payments that can also enhance the value of the cash account.

(It is important to note, though, that dividends are not guaranteed. However, there are mutual insurers (our top companies) that have made dividend payments to their policyholders on a consistent basis for more than 100 years).

Projected Growth

Even in a low interest rate environment – where the U.S. has been stagnating for more than a dozen years now – long-term growth projections for these types of infinite banking life insurance policies is typically in the range of 4-5%.

Further, unlike bonds or CDs – where you are locked into an interest rate for a certain period of time – with the cash value life insurance policy, higher interest rates in the future can equate to higher future dividends. So, the value of the account could grow exponentially over time.

Tax Deferred Growth

The money that is in the cash value account also grows tax deferred. So, the gains are not taxed until they are withdrawn. But alternatively, there are ways to access funds on a tax-free basis, too – and this is one of the features that makes the infinite banking concept so enticing.

Tax Free Distribution

For instance, if you take money out of a properly structured cash value life insurance policy by way of a policy loan, the distribution will be considered tax-free. This is because the IRS does not consider life insurance loans to be taxable income.

Earn Interest While Making Money

And you can take it one step further, as well, by having the money in your infinite banking life insurance policy’s cash value – even the amount that is equivalent to what you’ve borrowed – continue to earn interest going forward.

This happens because, technically, you are not borrowing directly from the policy, but rather from the underlying insurance company (and using your cash value only as collateral).

The benefits with life insurance policy loans don’t stop there. You could also have the opportunity to receive the money cost-free, as well as tax-free. This is because, even though the insurance company will charge you an interest rate on the borrowed funds, this “cost” could be offset by the interest that your money is continuing to earn.

As an example, if the insurance carrier charges you 5% (which is quite possible, as infinite banking life insurance policy loans will oftentimes have a lower interest rate than traditional loans from banks and other lenders), and the money in your cash value is also earning between a 4-5% rate of interest, then you have just secured a low cost or no-cost distribution.

Further, these infinite banking loans are not technically required to be repaid during the insured’s lifetime (even though the interest on the unpaid balance will continue to accrue). In this instance, if the loan has not been fully paid when the insured passes away, proceeds from the death benefit will be used to repay it. Then, the remaining funds will be paid out income tax-free to the policy’s beneficiary(ies).

So, why don’t more people take advantage of the infinite banking concept?

It is partially because many people shy away from some types of insurance products in general…especially permanent life insurance…feeling that they may pay a premium for many years only to end up cancelling the policy.

Therefore, permanent life insurance is perhaps the most underutilized financial vehicle in the marketplace by consumers.

Many people do not fully understand the flexibility that this tool offers, either. Rather, people oftentimes believe that life insurance only has one job – to pay out a death benefit when the insured dies. But certain types of life insurance for infinite banking can do so much more.

Banks Buy Cash Value Life Insurance

One segment of the economy that does understand the economic value – and that makes full use of high cash value permanent life insurance – is banking. In fact, banks buy lots of permanent life insurance.

These bank owned life insurance policies (AKA BOLI) are used for a number of different purposes, such as:

  • Funding their executives’ pensions and other employee benefits like retiree health care costs
  • Gaining various tax incentives (like tax-deferred growth)
  • Strengthening the overall financial stability of the bank

Permanent life insurance – and in particular, dividend-paying whole life insurance – is one of the rare financial vehicles in the U.S. that has evolved and improved throughout the years. This product has successfully made it through numerous recessions and economic upheavals that have taken place in the past 160+ years.

So, the infinite banking strategy definitely has maintained its staying power, and will likely continue to do so over time.

Can You Really Become Your Own Banker?

In order to understand how you can become your own banker, and essentially “borrow” money that you can use AND still generate interest on at the same time, it is important to understand how the overall financial system works.

How Banks Make Money

First, banks make money by simply being the “middleman” in many types of financial transactions. For instance, a bank customer deposits money into a savings account. In return for that, they may generate 1% in interest.

Then, the bank turns around and uses that money to lend out to borrowers. The bank may charge those borrowers 5% or 6% (or more, depending on the borrower’s creditworthiness) on their loans. (That is a 500-600% profit for the bank versus your 1%.)

So, even though the bank really doesn’t have any of its own assets at risk, it will earn money on the “spread” between the interest rate that it charges its borrowers and the amount of interest that is paid to its customers who have money saved in their institution.

To take the example even further, if you’re the borrower, and a bank or lender is hypothetically charging you 5% on a loan, the interest payments represent money that is forever out of your life. So, in this case, it is building wealth for the owners of the bank or lender.

The Velocity of Money

Second, even more important than the “spread” discussed above is the fact that banks NEVER let money stay stagnant, despite advocating that consumers stagnate their money by prioritizing “saving”.

In fact, banks loan your money out AND make loans that are multiplied many times over the actual cash reserves that are kept in the bank, a process known as the fractional reserve system.

The fractional reserve system allows banks to maximize the velocity of money so that banks take full advantage of each dollar that passes through their system.

The reality of the fractional reserve system within banking should provoke some careful thought about how “safe” banks actually are AND also should suggest that a cash value whole life policy is a safer place to keep money based upon reserve requirements for insurance companies (FDIC notwithstanding).

So, to shift your thinking, consider how you can keep your money moving (like a bank does) rather than stagnating it.

Interest is Killing Your Finances

If you’re borrowing from a traditional bank, the interest that you owe (and pay) can become the biggest enemy of your financial success. That’s because these payments have no redeeming value – even if they’re tax deductible. Over your lifetime, the compounded interest that you won’t earn on that money can be staggering.

Every dollar that comes into your life is going to build somebody’s wealth – so it might as well be you. The way to keep this money in your life, and to have it build your wealth, is to become the bank yourself!

Depositor, Borrower, and Bank

Using the infinite banking concept, you can actually be the depositor, the borrower, AND the bank. In this scenario, the interest that is being paid on the loan by the borrower (you) belongs to the bank (also you).

This interest goes into your bank and earns true compounded interest for you, which is often much more than the low rate of interest that you’re generating as a customer of a traditional bank with money in a savings account.

Using this concept, you make deposits into your bank, and you withdraw money through loans. You can do whatever you want with this money, such as pay off higher-interest loans, purchase assets such as real estate, or even make contributions into your investment account(s).

Redirecting interest can literally change what would otherwise be an expense – such as lost interest money – into an investment. This is the power of becoming your own bank – and doing so is easier than you might think.

The Instrument

To be clear, when you become your own banker, it doesn’t mean that you start an actual bank. Rather, you are using the financing capacity of one of the most flexible financial vehicles that is available in the marketplace – a dividend paying whole life insurance policy from a mutual insurance company.

And the best infinite banking life insurance companies are those that are top rated and financially secure. These cash value policies are actually the very same financial instrument that banks use to invest their “tier one” capital for guaranteed safety and growth. Using a specially designed permanent life insurance policy from a mutual (i.e., policy owner owned) life insurance company is a safe and liquid way to use capital.

Cash value vs Death benefit

These properly structured participating life insurance policies place a key focus on the cash value, rather than on the death benefit – although this coverage is in place, too, and it can ensure that your heirs will inherit a set amount of income tax-free funds if the unexpected occurs.

The reason for the emphasis on cash value is so that the majority of your payment goes towards the cash value growth. Your infinite banking life insurance premium payment is going to be smaller than your payment towards paid up additions.

Non Correlated Asset

While many people believe that the low return offered on conservative whole life policies isn’t profitable, the reality is that when you don’t have any losses to contend with via a volatile stock market, a lower – yet steady – compounded rate of return will actually give you more money…and it can do so without having to endure any sleepless nights worrying about market-related losses.

In fact, the stock market could crash, and your whole life insurance policy will continue to generate growth through interest since whole life is a non-correlated asset, i.e. not correlated to the stock market.

While the infinite banking concept has been used by many wealthy individuals and families like the Rockefellers, you don’t have to be rich to take advantage of all that this strategy has to offer – both now and well into the future.

Does Indexed Universal Life (IUL) Work for Infinite Banking?

Indexed Universal Life is cash value life insurance. It shares many of the characteristics of whole life, minus the guarantees and fixed cost of a whole life policy.  Whole life guarantees often make the traditional infinite banking practitioner a “purist” in favor whole life versus an IUL when implementing an infinite banking strategy.

With that said, an IUL is still a contractual asset that offers growth opportunities and stops losses (contractually) and some people prefer the potential higher returns an IUL may offer during a run of high market gaining years.

If you are interested in considering an IUL versus whole life policy, the best route is to have our expert Pro Client Guide run some comparison illustrations for you and have a conversation about which option would be best for you and your specific goals.

What Other Alternatives Can I Use to Practice Infinite Banking?

You can use any other type of savings vehicle to practice the infinite banking concept. For example, a typical bank savings account could work. However, it is missing some key ingredients that cash value life insurance provides, mainly cash value growth in a tax deferred environment, the ability to borrow money from the policy and still make money on the entire balance of your cash value, while simultaneously providing death benefit protection and potential creditor and bankruptcy protection.

Seven steps to creating your own infinite banking system:

  • Step 1: Cash Value Infinite Banking Life Insurance Policy
  • Step 2: Infinite Banking Life Insurance Riders
  • Step 3: Fund your Bank
  • Step 4: Finance Your Purchases
  • Step 5: Recapture Your Money With Interest
  • Step 6: Repeat
  • Step 7: Plan Your Estate

We have an article titled Using Life Insurance as Your Own Bank where we go into more detail on these 7 steps. But let’s take a brief look at each.

Step 1: Cash Value Infinite Banking Life Insurance Policy

This is an infinite banking life insurance policy that is specifically designed for high cash value growth versus focusing on the initial death benefit.

Step 2: Infinite Banking Life Insurance Riders

A properly designed whole life insurance policy will also include necessary riders, such as paid up additions rider and term rider.

Step 3: Fund your Bank

The funding stage is where you make your first premium payment. Your infinite banking life insurance policy should be designed so you can put the maximum amount of money into the policy without having the policy become a modified endowment contract or MEC.

Step 4: Finance Your Purchases

This is the step where you use your cash value as collateral for a whole life insurance policy loan and purchase large ticket items, such as cash flowing real estate.

Step 5: Recapture Your Money With Interest

A good banker pays back his loan, with interest. This is your money, with interest, going back into your policy.

Ideally, you may be making money on your cash flow investment, which you can use to repay your loan.

Simultaneously, you are also making money on your cash value in your policy, as your entire cash value balance is accruing interest and dividends from the life insurance company.

Step 6: Repeat

As you pay back your whole life insurance policy loan, you continue to hunt for cash flowing assets, and repeat the process of borrowing from your “bank”, purchasing cash flow assets, repaying your loan, and doing this again and again and again.

Step 7: Plan Your Estate

We need to add an additional step here because after you entire legacy of wealth building, you will have a sizeable estate to leave behind.

Proper estate planning at this point is critical for passing on as much of your legacy to your family as possible.

“Traditional” Financing vs. the Infinite Banking Method

One way to illustrate the power of the infinite banking concept is to compare three methods of purchasing a rental property. One option is to use all cash, and another is to go with traditional bank financing. A third alternative is to use the infinite banking concept by taking a policy loan.

In this particular example, the purchase price of the rental property is $250,000. The 30-year mortgage and the policy loan charge an interest rate of 6%. But the infinite banking life insurance policy loan also continues to pay interest of 4.5% on the $250,000 that was “borrowed” over that same 30-year period.

We are also assuming you are getting positive cash flow from the rental property over the same time frame.

Paying Cash vs. Bank Financing vs. The Infinite Banking Concept (Life Insurance Policy Loan)

CashTraditional Bank FinancingPolicy Loan
Purchase Price: $250,000($250000)N/AN/A
30-Year Mortgage & Policy Loan at 6%N/A($539,595)($539,595)
3% Property Appreciation over the 30-year time period$606,815$606,815$606,815
Net Cash Flow of $2,200 per month for 30 Years$792,000$792,000$792,000
$250,000 Cash Value at 4.5% for 30 YearsN/AN/A$936,330
Totals After 30 Years$1,148,815$859,220$1,795,550

*Insurance and Estates does not offer mortgage advice or tax advice. Numbers provided are for illustration purposes only and are subject to change.

Because the amount of cash that is borrowed from the insurance carrier continues to accumulate interest, this is added to the cash flow and appreciation, and in turn, generates an overall profit that is several hundred thousand dollars higher than the other two purchase options.

Imagine asking a traditional bank or lender to loan you $250,000 while at the same time still paying you interest on that same $250,000 for the next 30 years!

Remember when we examined traditional banking above and considered the velocity of money?   This example is one way to think about achieving velocity with your money in a similar way, keeping your money moving when earning.  This is also referred to as a financial arbitrage, because you are earning in multiple ways at the same time, at rates that exceed the relatively low cost of borrowing from your cash value as discussed above.

What Needs Could the Infinite Banking Concept Solve?

Throughout your lifetime, you will likely face many financial “hurdles.” Having your own bank in place can help you to solve for many of them.

These can include:

  • Privacy
  • No credit checks
  • Repayment flexibility (on the terms and payment amount)
  • Protection from creditors, lawsuits, and bankruptcy (in some areas)
  • Time (i.e., cash can be available in a matter of just days, or even sooner)

In addition, by borrowing from your own bank, you can leave your cash alone, or use it for other wants and needs.

Which brings us to the next section, the pros and cons of infinite banking.

Pros and Cons of the Infinite Banking Concept

how to be your own bankThere is no single financial vehicle or strategy that is right for everyone across the board. Given that, the infinite banking concept has both advantages and drawbacks – but these may differ, depending on your particular goals and needs.

With that in mind, some of the advantages of using the infinite banking concept include:

1. Liquidity – Liquid Cash may be accessed tax-free via borrowing (versus making withdrawals)

2. True Compound Interest Account – Funds in the account continue to compound – even if you have taken out a loan

3. Guaranteed Growth – Growth in the cash value account is guaranteed (in any type of market or economic environment) providing the opportunity to accumulate wealth over time through the cash value component of the policy.

4. Death Benefit Protection – There is a financial “safety net” for heirs through the death benefit

5. Tax-Free Savings Account – The policy offers the potential opportunity of a tax-free savings account through life insurance loans.

6. Creditor protection – Life insurance offers creditor protection including protection from lawsuits and bankruptcy – in some states

7. Privacy – Policy loans do not show up on your credit report

8. No Surrender Charges – infinite banking life insurance policies do not have a surrender fee.

Even given all of the advantages that the infinite banking concept offers, though, there are a few items that may be considered as potential drawbacks. Therefore, the following potential disadvantages should also be factored into your decision to move forward:

1. Must Qualify – The insured must qualify for the insurance coverage. Unlike investments like stocks or mutual funds, life insurance requires that the insured on the policy qualify for coverage, based on their health condition.

2. Cost Prohibitive – For many people living paycheck to paycheck the infinite banking concept can be cost prohibitive.

Although there is no set minimum monthly payment, in order to truly follow this concept and see its fruit you would need to try and put around 10% of your income into your policy, or at least $300 a month.

For many people who are just getting by this can be prohibitive and it precludes many from ever attempting this awesome wealth building strategy.

The good news is there is often places where you can “find” additional money that is slipping through the cracks. Our team of pros can help you shore up you finances and “discover” money you never knew you had.

3. Requires Discipline – Nelson Nash wrote that for you to be successful with the infinite banking concept you must be an “honest banker,” which means you have to pay yourself back.

Infinite banking requires financial discipline. Those who are not disciplined in their finances will find this concept difficult to apply and stick with over the long term.

Therefore, it is critical that you work with a infinite banking life insurance specialist – and in particular, a professional who is also well versed in the infinite banking concept – as you move through the process of setting up this strategy.

Creating Your Own Family Bank

Creating your own family bank is not as simple as just buying a random whole life insurance policy and then borrowing against its cash value. There are actually several criteria involved in the process.

1. Participating

First, it is important that you have a “participating” whole life policy. These policies are issued by mutual insurance companies – those that are owned by their policy holders, versus stockholders.

Participating whole life insurance policies also pay out dividends (although these are not guaranteed). Dividends can be taken in cash, added to the policy’s cash value, or used to purchase additional insurance (i.e., paid-up additions).

Because policy dividends are technically deemed a return of excess premium, they are also tax-free to the recipient.

2. Paid-Up Additions

Insurance policy riders are options that can help you to customize your policy so that it delivers maximum lifetime benefits that are based on your needs and objectives. When you set up your “bank,” one of your top priorities should be to grow the cash value in the insurance policy as quickly as possible. A paid-up additions rider is a critical component for helping you to do that.

For instance, in the early years of the policy – when the cash value in regular whole life insurance policies grows slowly – a paid-up additions rider can allow you to purchase additional coverage with premium payments that go directly towards the cash component.

Once you have earned sufficient dividends with your participating whole life insurance policy, they may be used to pay for your paid-up additions. This is what can ultimately allow the infinite banking concept to work so wall that its growth is comparable to gains that are received via mutual funds or qualified retirement plans after their associated taxes and fees.

Paid-up additions allow you to “supercharge” the policy for rapid cash value growth and maximum wealth over the life of the policy.

3. Loan vs Withdrawal

You may access cash from the whole life policy at any time and for any reason. But remember, in order to truly take advantage of the infinite banking concept, you should access these funds in the form or a loan versus a withdrawal, because the former is tax-free while the latter will be taxable.

With regard to repaying the life insurance policy loan, because you are your own banker, you can decide when to make the payment, as well as how much you will pay. Any unpaid loan amount at the time of the insured’s passing will be paid out of the death benefit proceeds.

The money in traditional qualified retirement accounts grows tax deferred. But this does not mean that you’ll never have to pay tax on these funds. Rather, it is only postponed until a later date – and the tax rate that you pay is currently unknown.

But it is likely that taxes in the future will be higher than they are now (in 2023). In fact, since 1913, the top federal income tax rate in the United States has been as high as 94%, and it has been at 70% or higher in forty-nine of the past 110 years. This is one reason why it is best to borrow funds tax-free from the policy’s cash value rather than accessing the money via taxable withdrawals.

 Top Federal Income Tax Rates 1913 – 2022

Important Items to Consider Before You Use the Infinite Banking Concept

As with any other financial concept or strategy, it is important to consider several items before you move forward with purchasing a cash value life insurance policy and taking advantage of the infinite banking concept. These include the following:

Where your money is currently invested.

Many qualified retirement plans like the 401(k) and 403(b) invest assets into the stock market – which during volatile times, can put investors at risk of significant loss.

Conversely, the funds that are in a whole life insurance typically grow at a set rate of return, and they are immune to the ups and downs of the stock market.

Life Insurance Premium Cost.

There will be a life insurance premium involved when you purchase a whole life insurance policy. In this case – particularly if you (or the person on whom the coverage is based, if you are not the insured) are in relatively good health when you apply for the coverage – the amount will generally be higher than that of a comparable term life insurance policy (i.e., one that offers death benefit only protection, without any cash value build-up).

But unlike a term life policy, the premium amount on a whole life insurance policy is locked in for the remainder of your lifetime – even as you get older, and if you contract an adverse health condition. In addition, a portion of each premium will go towards the cash value component of the policy, which in turn, will continue to increase the value of the policy and death benefit.

Health condition of the insured.

Life insurance usually requires that applicants for coverage not have serious health conditions. This is because the insurer wants to keep the risk of paying out a death claim low.

So, depending on your age and the policy amount, you will have to qualify for a policy by taking a health exam. The insurance company pays for the exam and usually an examiner will come out to your home or place of business.

Accelerated underwriting is also available for those who qualify, which may allow you to forego an exam.

Underlying insurance company.

Like many other products and services, different insurance companies may charge different life insurance premium amounts – even for the very same item. So, it pays to shop around before you commit to purchasing a policy.

In this situation, working with an infinite banking life insurance specialist, such as the professionals at I&E, can help you with narrowing down the right plan for your specific needs.

Financial Strength

In addition to the premium price, you should also make sure that you review the financial strength and claims paying ability of an insurer. That way, you can determine whether or not it has a good reputation for taking care of its clients.

So, if you’re ready to change who profits from YOUR money and who is ultimately in control of it, then you may want to consider using the infinite banking strategy, which could pay off now – and well into the future.

Infinite Banking FAQs

Q: How soon can I take a policy loan?

A: A good rule of thumb is to wait 60-90 days before requesting a policy loan. However, it will also depend on how much of the total available cash value you want to borrow against. Basically, the smaller percentage, the quicker the loan.

How to Get Started with Infinite Banking

If it appears that the infinite banking concept may work for you – or if you would like to learn more about how this strategy works – it is recommended that you discuss your specific needs, goals, risk tolerance, and time frame with an infinite banking life insurance specialist. This is where Insurance and Estates can help!

At Insurance and Estates, we will answer your questions and walk you through the inner workings of the infinite banking concept – and if it is the right strategy for you, we can also assist you with finding the best insurer to use in your plan.

Additionally, once you have implemented the infinite banking concept we will continue to help you apply the concept to make sure you have the support system in place to succeed.

So what are you waiting for? Schedule your complimentary strategy session with an infinite banking life insurance specialist today!


1. See The Vanderbilts: How American Royalty Lost Their Crown Jewels

Disclaimer: The Infinite Banking Concept® is a registered trademark of Infinite Banking Concepts, LLC. Insurance and Estates is independent of and is not sponsored by, endorsed by, or affiliated with Infinite Banking Concepts, LLC.

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