Infinite banking: The Secret to Becoming Your Own Banker


Have you ever wished you could bypass traditional banks and take control of your financial destiny? If so, you may be interested in the concept of infinite banking. This financial strategy allows individuals to become their own banker, providing them with greater control over their money and the ability to build long-term wealth. In this article, we will explore the concept of infinite banking, how it works, and the potential benefits it can offer.

What is Infinite banking?

Infinite banking, also known as the Infinite banking Concept (IBC), is a financial strategy developed by Nelson Nash in the early 1980s. The concept revolves around the idea of utilizing a specially-designed whole life insurance policy as a personal banking system. Instead of relying on traditional banks for loans and financing, individuals can leverage their own policy to access cash value and make loans to themselves.

How Does Infinite banking Work?

The key to infinite banking lies in the use of whole life insurance policies. Unlike term life insurance, which only provides a death benefit, whole life insurance policies accumulate cash value over time. This cash value can be accessed through policy loans, allowing policyholders to leverage their own money to fund various financial needs.

Here’s how the infinite banking process typically works:

  1. Obtain a whole life insurance policy: The first step is to purchase a participating whole life insurance policy from a reputable insurance company. It’s crucial to work with an experienced agent who understands the infinite banking concept and can help tailor the policy to your specific needs.
  2. Pay premiums: Policyholders pay regular premiums into their policy, which go towards both the death benefit and the accumulation of cash value.
  3. Accumulate cash value: Over time, the cash value of the policy grows tax-deferred. This cash value can be borrowed against by the policyholder.
  4. Make policy loans: When a financial need arises, the policyholder can take out a loan from their policy’s cash value. The loan is typically repaid with interest, which goes back into the policy’s cash value.
  5. Repeat the process: As the loan is repaid, the policyholder can reuse their policy’s cash value to fund future expenses or investments, effectively becoming their own banker.

The Benefits of Infinite banking

Infinite banking offers several potential benefits for individuals who implement this strategy:

1. Control over your money

By becoming your own banker, you gain full control over your money. You no longer have to rely on traditional banks or financial institutions for loans and financing. Instead, you can access your own cash value on your terms and use it for whatever purpose you choose.

2. Tax advantages

Whole life insurance policies offer tax advantages. The growth of cash value is tax-deferred, meaning you don’t have to pay taxes on the growth until you withdraw the funds. Additionally, policy loans are typically tax-free, as they are considered a loan rather than income.

3. Legacy planning

Infinite banking not only benefits the policyholder but also provides a valuable tool for legacy planning. The death benefit of the policy can be used to provide a tax-free inheritance to beneficiaries, helping to secure the financial future of your loved ones.

4. Protection from market volatility

One of the significant advantages of whole life insurance policies is their stability. The cash value grows steadily over time, regardless of market fluctuations. This stability can provide peace of mind, especially during times of economic uncertainty.


Q: Is infinite banking only for wealthy individuals?

A: No, infinite banking can be implemented by individuals of various income levels. It’s more about the concept and strategy than the initial investment. However, the benefits of infinite banking may be more pronounced for individuals with higher incomes.

Q: Can I still use my policy’s death benefit if I take out loans?

A: Yes, even when you take out loans against your policy’s cash value, the death benefit remains intact. The death benefit is separate from the cash value and is typically paid out to beneficiaries upon the policyholder’s passing.

Q: How do I find a reputable insurance company and agent for infinite banking?

A: It’s essential to do thorough research and seek recommendations from trusted sources when choosing an insurance company and agent for infinite banking. Look for companies with a strong financial track record and agents who specialize in the infinite banking concept.

Q: Are there any risks associated with infinite banking?

A: As with any financial strategy, there are potential risks involved. It’s crucial to work with an experienced agent who can guide you through the process and help mitigate any risks. Additionally, policyholders should ensure they understand the terms and conditions of their policy, including loan interest rates and repayment terms.

Q: Can I cancel my policy at any time?

A: Yes, policyholders have the option to cancel their policy at any time. However, it’s important to consider the potential consequences before making this decision, such as surrender charges or loss of accumulated cash value.


Infinite banking offers individuals a unique opportunity to take control of their financial future. By becoming your own banker through the use of whole life insurance policies, you can access cash value, make loans to yourself, and build long-term wealth. While infinite banking may not be suitable for everyone, it’s a concept worth exploring for those seeking greater financial control and potential tax advantages.

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