The Infinite <a href="">banking</a> Strategy: Taking Control of Your Financial Future

The Infinite banking Strategy: Taking Control of Your Financial Future


When it comes to managing your finances, having a solid strategy is crucial. One strategy that has gained popularity in recent years is the Infinite banking Strategy. This unique approach allows individuals to take control of their financial future by leveraging their own life insurance policies. In this article, we will explore what the Infinite banking Strategy is, how it works, and how it can benefit you in the long run.

What is the Infinite banking Strategy?

The Infinite banking Strategy, also known as Becoming Your Own Banker, was developed by Nelson Nash, an American financial consultant, and author. It is a concept that emphasizes the use of whole life insurance policies as a financial tool to create a personal banking system.

The idea behind the strategy is to establish a whole life insurance policy with a reputable insurance company. Over time, as the policy accumulates cash value, it can be used as collateral to borrow against and fund various expenses, such as education, purchasing a car, or even starting a business. By borrowing from your own policy, you essentially become your own banker, eliminating the need to rely on traditional banks or financial institutions.

How Does it Work?

The Infinite banking Strategy works in three simple steps:

  1. Establish a Whole life Insurance Policy: The first step is to obtain a whole life insurance policy from a trusted insurance company. This policy should be structured specifically for cash value accumulation, rather than just focusing on the death benefit.
  2. Build Cash Value: As you make premium payments, a portion of the money goes towards the death benefit, while the rest accumulates as cash value within the policy. Over time, the cash value grows tax-deferred and can be used for various purposes.
  3. Borrow Against the Policy: Once the cash value has reached a substantial amount, you can borrow against it. The borrowed amount is not considered taxable income, and you have the flexibility to repay the loan on your terms.

Benefits of the Infinite banking Strategy

The Infinite banking Strategy offers several advantages:

  • Control: By becoming your own banker, you have control over your finances and the ability to access funds when needed. You are not bound by the restrictions and requirements of traditional banks.
  • Flexibility: You can use the borrowed funds for any purpose you desire, whether it’s for personal expenses, investments, or even to fund your retirement.
  • Tax Advantages: The cash value growth within the policy is tax-deferred, meaning you don’t have to pay taxes on the growth until you withdraw the funds. Additionally, loans borrowed against the policy are not taxable.
  • Legacy Planning: The death benefit of the policy ensures that your loved ones are financially protected in case of an unfortunate event.

FAQs about the Infinite banking Strategy

1. Is the Infinite banking Strategy suitable for everyone?

The Infinite banking Strategy can be beneficial for individuals who have a long-term financial outlook and are committed to building cash value within a whole life insurance policy. It may not be suitable for those who prefer short-term gains or have immediate liquidity needs.

2. How long does it take to build substantial cash value?

The time required to build substantial cash value within a policy depends on various factors such as the premium amount, the insurance company’s dividend rates, and the policyholder’s age and health. Generally, it takes several years to accumulate a significant cash value.

3. Can I borrow against the policy multiple times?

Yes, you can borrow against the policy multiple times as long as there is sufficient cash value available. However, it is important to manage your policy and loan repayments responsibly to maintain the policy’s integrity.

4. What happens if I don’t repay the loan?

If you do not repay the loan, the outstanding balance will be deducted from the death benefit upon your passing. However, it is advisable to repay the loan to preserve the policy’s cash value and maximize its benefits.

5. Can I use any type of life insurance policy for the Infinite banking Strategy?

No, the Infinite banking Strategy requires a specifically structured whole life insurance policy. Term life insurance policies do not accumulate cash value and therefore cannot be used for this strategy.


The Infinite banking Strategy offers individuals a unique opportunity to take control of their financial future. By leveraging a whole life insurance policy, you can become your own banker, enjoying the benefits of flexibility, control, and tax advantages. However, it is important to understand the strategy thoroughly and work with professionals who specialize in this area to ensure its suitability and success for your specific financial goals.

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