The Infinite banking Policy: How to Become Your Own Banker

In today’s financial landscape, individuals are constantly searching for ways to gain more control and independence over their money. One strategy that has gained popularity in recent years is the concept of becoming your own banker through an Infinite banking Policy.

What is an Infinite banking Policy?

An Infinite banking Policy is a strategy that allows individuals to create their own banking system, bypassing traditional financial institutions. This concept was popularized by R. Nelson Nash in his book “Becoming Your Own Banker,” where he introduced the idea of using whole life insurance as a tool to accumulate wealth and create a personal banking system.

How does it work?

The first step in implementing an Infinite banking Policy is to purchase a participating whole life insurance policy. Unlike term life insurance, whole life insurance provides coverage for the entire lifetime of the insured individual. The policy accumulates cash value over time, which can be accessed by the policyholder.

Once the policy is in place, the policyholder can borrow against the accumulated cash value, just like borrowing from a traditional bank. The policyholder becomes their own bank, with the ability to lend money to themselves and pay themselves back with interest.

Benefits of an Infinite banking Policy

1. Access to cash: By utilizing the cash value of the whole life insurance policy, individuals can have access to liquidity whenever they need it. Whether it’s for emergencies, investment opportunities, or personal expenses, the policyholder has the ability to access funds without going through the traditional loan application process.

2. Tax advantages: The growth of cash value in a whole life insurance policy is tax-deferred. Additionally, policy loans are generally tax-free. This allows individuals to grow their wealth and access it without incurring taxes.

3. Control over interest payments: When policyholders borrow against their cash value, they pay themselves back with interest. This interest payment is an additional source of income for the policyholder, which can be reinvested or used for other purposes.

4. Legacy planning: Whole life insurance policies provide a death benefit that can be passed on to beneficiaries. This can be a way to leave a financial legacy for loved ones, ensuring that they are taken care of in the event of the policyholder’s death.


While an Infinite banking Policy offers several advantages, it is important to understand that it is a long-term strategy. It requires discipline and commitment to consistently fund the policy and build up the cash value over time. Additionally, the policyholder should carefully review the terms and conditions of the whole life insurance policy, including fees and charges, to ensure it aligns with their financial goals.


The Infinite banking Policy is a powerful strategy that allows individuals to take control of their finances and become their own banker. By leveraging the cash value of a whole life insurance policy, individuals can access liquidity, enjoy tax advantages, and have control over interest payments. It is a strategy that requires careful planning and commitment, but can provide financial independence and security in the long run.

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