Infinite <a href="">banking</a>: How to Become Your Own Banker

Infinite banking: How to Become Your Own Banker


Infinite banking is a financial strategy that allows individuals to become their own bankers. It was developed by Nelson Nash, who believed in the power of utilizing whole life insurance policies as a means to create a personal banking system. This article will explore the concept of Infinite banking, how it works, and how you can implement it in your own financial planning.

Understanding Infinite banking

Infinite banking revolves around the concept of using whole life insurance policies as a way to build wealth and create a financial safety net. Instead of relying on traditional banks, individuals can leverage the cash value of their insurance policies to access funds for various purposes, such as investments, emergencies, or large purchases. The key idea is to redirect the money that would typically be deposited in a traditional bank account into a whole life insurance policy, which can then be used as a source of financing.

How Does Infinite banking Work?

The process of implementing Infinite banking involves several key steps:

Step 1: Purchase a Whole life Insurance Policy

The first step is to purchase a whole life insurance policy from a reputable insurance company. It is essential to carefully choose a policy that aligns with your financial goals and offers favorable terms and conditions. The policy should emphasize cash value accumulation rather than solely focusing on the death benefit.

Step 2: Pay Premiums and Build Cash Value

Once you have your policy, you will need to pay regular premiums to keep it active. As you continue to pay premiums, a portion of the money will go towards the insurance coverage, while the remainder will accumulate as cash value within the policy. Over time, the cash value grows tax-deferred and can be accessed through policy loans or withdrawals.

Step 3: Borrow Against the Cash Value

One of the key benefits of Infinite banking is the ability to borrow against the cash value of the insurance policy. By taking out a policy loan, you can access a portion of the cash value without triggering any taxable events. The loan can be used for various purposes, and the interest paid goes back into your policy, further increasing its cash value.

Step 4: Repay the Policy Loan

When you borrow against the cash value, it is essential to repay the loan to maintain the integrity of your Infinite banking system. By repaying the loan, you replenish the cash value, allowing you to continue utilizing this strategy in the future.

Benefits of Infinite banking

Infinite banking offers several advantages for individuals who adopt this strategy:

Tax Advantages

One of the primary benefits of Infinite banking is the tax advantages it offers. The cash value accumulation within a whole life insurance policy grows tax-deferred. Additionally, policy loans are not considered taxable events. This tax-efficient growth can significantly benefit individuals seeking to build wealth while minimizing their tax liabilities.

Greater Control and Flexibility

By becoming your own banker, you gain greater control and flexibility over your financial decisions. You are not dependent on traditional banks or financial institutions, allowing you to access funds quickly and easily whenever needed. This control enables you to seize investment opportunities, handle emergencies, or make significant purchases without going through the traditional loan application process.

Legacy Planning

Infinite banking also offers benefits in terms of legacy planning. The death benefit of a whole life insurance policy ensures that your loved ones are financially protected in the event of your passing. It provides a tax-free inheritance that can be used to cover expenses, pay off debts, or support their financial needs.


Q: Is Infinite banking suitable for everyone?

A: Infinite banking may not be suitable for everyone, as it requires a long-term commitment and the ability to pay premiums consistently. It is crucial to assess your financial situation and consult with a financial advisor to determine if this strategy aligns with your goals and circumstances.

Q: Can I borrow against the cash value of my policy?

A: Yes, one of the main advantages of Infinite banking is the ability to borrow against the cash value of your whole life insurance policy. Policy loans offer a tax-efficient way to access funds without triggering taxable events.

Q: What happens if I don’t repay the policy loan?

A: Failing to repay the policy loan can have consequences. The outstanding loan balance will reduce the death benefit, and if left unpaid, it may lead to policy termination. It is crucial to repay the loan to maintain the integrity of your Infinite banking system and ensure the long-term success of your strategy.

Q: How can I get started with Infinite banking?

A: To get started with Infinite banking, you should research reputable insurance companies that offer whole life insurance policies. Seek guidance from a financial advisor who specializes in this strategy to tailor it to your specific financial goals and objectives.


Infinite banking offers a unique approach to financial planning, allowing individuals to become their own bankers. By leveraging the cash value of whole life insurance policies, individuals can gain greater control, flexibility, and tax advantages. However, it is crucial to thoroughly understand the strategy, assess your financial situation, and seek professional advice before implementing Infinite banking in your own financial plan.

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