Infinite Banking
What is Infinite Banking?
Infinite Banking is a financial strategy that allows you to become your own bank by leveraging the cash value of a properly designed whole life insurance policy. This approach enables you to finance major expenses, manage cash flow, and build wealth, all while enjoying the benefits of a whole life insurance policy.
The Infinite Banking Concept is also known as “Become Your Own Banker,” “Bank on Yourself,” “Family Banking,” “Perpetual Wealth Strategy,” and “770 Account.”
What Problems Does Infinite Banking Solve?
When you get paid, your money usually goes into a savings/checking account, where you might save $20,000 to $40,000 for emergencies. At the same time, you could have debts like a car loan or mortgage.
Banks give you low interest on your savings but charge high interest on loans. They control the rates you earn and pay.
- To qualify for a loan, the bank may check your credit history, ask for payslips and other information, even if you have a large emergency fund in your account. You can’t use your savings as collateral to borrow against.
- The bank will send you a 1099-INT form at the end of the year for any interest earned in your account, which interrupts the compounding growth.
How Infinite Banking Solves These Problems
Guaranteed Growth
Policy grows annually based on a guaranteed interest rate, with potential dividends from mutual companies.
Tax Advantages
Cash value grows tax-deferred. Take loans against your cash value tax-free with no penalties or restrictions. Repay on your schedule, if at all
Liquidity
Cash value can be accessed easily. No credit checks or proof of payslips. Just submit a request online or make a phone call.
Continuous Compound Growth
Full cash value continues to grow even when you borrow against your policy.
Death Benefit
Your beneficiaries receive a tax-free payout, significantly more than the premiums paid
Collateral
Some banks allow using your policy as collateral for loans
Privacy
Insurance contracts are private and don't appear on credit reports, protecting your eligibility for benefits like student aid.
Non-Correlated Asset
Cash value grows independently of the stock market, providing a "safe bucket" in your portfolio.
Control Over Finances
Contractual growth rate as well as loan rate gives you control over your finances for the life of the policy.
How Infinite Banking Works
Infinite Banking starts with getting a properly designed whole life insurance policy. This is very different from a traditional whole life policy so work with an experienced agent who knows how to set it up.
1. Build Cash Value
A portion of your whole life insurance premium goes into a cash value account, which grows over time at a guaranteed rate. This cash value is accessible and can be borrowed against.
2. Borrow Against Cash Value
You can take out loans against your policy’s cash value at competitive interest rates. These loans are not taxable and do not require a credit check. Use the borrowed funds for any purpose—purchasing a car, funding a business, paying for education, or any other financial needs.
3. Repay Loans on Your Terms
Repay the loans on your schedule. The policy continues to grow and earn dividends (if applicable) even while you have outstanding loans.
4. Enjoy the Benefits
Your whole life insurance policy provides lifelong coverage, guaranteed cash value growth, and a death benefit for your beneficiaries.
Get Started with Infinite Banking
Ready to take control of your financial future? Contact us to learn how Infinite Banking can work for you.
