A Comprehensive Guide to Infinite Banking

This guide will walk you through the ins and outs of Infinite Banking.

Today I am going to talk to you about the benefits of Infinite banking through a whole life insurance policy.

Whether you are new to the Infinite Banking concept or wanting to learn more about how to maximize your whole life insurance policy to structure your infinite banking system, this guide can assist you in better understanding your options.

I will break down what Infinite Banking is, how the infinite banking concept works, the pros and cons of Infinite Banking, how to decide if infinite banking is for you (chances are if you are reading this, it is), how to get started and structure an infinite banking system using your whole life insurance policy, and how to maximize your wealth from your Infinite banking.

This information is coming to you based on the experience and expertise in supporting people to build real independent wealth and freedom for over 5 years.

Wealth Nation has already generated over $75 million for our clients with a financial system we call Lifestyle Banking.


  • What is Infinite Banking
  • History of Infinite Banking
  • How does Infinite Banking Work
  • Role Whole Life Insurance Plays in Infinite Banking
  • Infinite Banking Case Studies
  • Pros and Cons of Infinite banking
  • Is Infinite Banking for you?
  • Universal life insurance vs whole life insurance as it relates to infinite banking
  • How to Structure Infinite Banking System
  • How to Maximize your wealth from Infinite Banking
  • Getting Started with Infinite Banking
  • Conclusion

What is Infinite Banking

The term Infinite means “limitless or endless in space, extent, or size.”

The concept of infinite banking is about strategically using your whole life insurance policy from a mutual insurance company as a personal endless banking system

In other words, Infinite Banking is essentially being your own banker.

One of the many benefits of a whole life insurance policy is that policyholders are able to borrow money using the cash value of their policy.

Using this borrowing setup, you would never have to borrow money from a bank again and instead would borrow for yourself (your whole life insurance policy) and pay yourself back over time. Thus, being your own bank.

The goal of Infinite banking is to duplicate the process as much as possible in order to build the value of your own bank.

The duplication process happens by lending and repayment of money that is typically held in the cash value of a permanent life insurance policy.

Infinite banking allows you to better work towards your individual and unique financial goals for yourself and your family, and have control over your finances, without having to deal with banking fees or interest rates on loans.

The infinite part of infinite banking refers to the whole life insurance payout when you die.

As long as premiums are paid on your whole life insurance policy, there will always be a payout to the policyholder.

When the policyholder dies, the payout from the whole life insurance policy can go to the beneficiaries and allow them to bank on themselves.

This would allow your beneficiaries to set up the same infinite banking system for themselves to continue building generational wealth that is unique to their financial goals and needs and again, allowing control of your finances.

In order for Infinite banking to work, you need your own Bank. That is where your whole life insurance policy comes in which I will discuss more in-depth later in the guide.

Next, I will discuss the history of Infinite Banking, its founder, and the school of thought where it originated from.

History of Infinite Banking

Infinite Banking was created by Nelson Nash in the 1980s who was a finance expert and follower of the Austrian School of Economics.

While Nash named this concept and popularized it in his book Becoming Your Own Banker, the Austrian School of Economics created a school of thoughts around the infinite banking concept.

Carl Menger, the founder of the Austrian School of Economics, published his first book Principle of Economics in 1871 where he criticized the classical theory of economics that was commonly held at the time and provided an alternative way of thinking about economics.

Menger proposed the “Subjective Theory of Value,” the idea that an object’s value is not inherent and is instead worth more to different people based on how much they desire or need the object.

The subjective theory of value places value on how scarce and useful an item is, rather than basing the value of the object on how many resources and hours of labor went into creating it.

In other words, individuals value money and goods differently based on their economic status and needs.

Many famous economists have followed and promoted this school of thought, such as Ludwig Von Mises, Murray Rothbard, and Friedrich Hayek.

Out of this same school of thought, Nash developed the idea of individuals becoming their own bankers to better achieve their own unique, individual financial goals, and how individuals can be their own bankers instead of having to rely on financial institutions.

Next, I will discuss how infinite banking works and the role your whole life insurance policy plays in the infinite banking system.

How does Infinite Banking Work

Infinite Banking provides an extremely tax-efficient system, delivers a competitive interest rate for how stable it is, can never decrease in value, and allows you to use money in both your whole life insurance policy and elsewhere

No one wants to rely on financial institutions more than necessary, and having control of my money sounds amazing.

But how does Infinite Banking work?

Simply put, Infinite Banking involves:

  1. Overfunding (with after-tax funds) a high cash value whole life insurance policy from a life insurance company
  2. Accumulation of Cash Value(tax-free) throughout the years you are a policyholder of your Whole Life insurance policy
  3. Tax-Free Loans taken out against your whole life insurance policy’s cash value to use for your individual financial expenses

The way infinite banking works allows you to mimic the way a bank operates and borrows money.

Instead of borrowing from a bank, you are borrowing from yourself while still allowing your whole life insurance policy to earn dividends (money) even though you are using that money elsewhere.

Whether it be for your child’s education, for a downpayment on a house, or medical expenses, borrowing for yourself and being your own bank, allows you the financial freedom and control of your money.

One thing that is important to point out in making sure infinite banking works best for you, is that it is more of a long-term play and investment.

Wealth Nation founders discuss the importance of understanding your personal finances in order to capitalize your efforts in investing in an infinite banking system.

You don’t want to make the same financial mistakes that you may have made prior to using your whole life insurance policy as a tool for infinite banking.

The purpose of Infinite Banking is to serve as your personal savings system, where your money grows in a more conservative manner, your money is guaranteed never to decrease in value, and can be dependably accessed tax-free through policy loans at any time.

Sounds pretty great, right?

Next, I will discuss the role Whole Life Insurance plays in making the Infinite Banking system come to life.

Role Whole Life Insurance Plays in Infinite Banking

Nelson Nash determined that the best financial tool for Infinite Banking is whole life insurance as it allows the policyholder to act as the banker of the whole life insurance policy(the bank).

However, it is important to be clear that Infinite Banking is NOT whole life insurance.

It is a tool that can be used to replicate the banking system using your own money.

While Nash coined the term infinite banking, the concept of using whole life insurance as a means to build wealth wasn’t necessarily a new concept in the 1980s.

Families such as the J.P. Morgan Family, created generational wealth using whole life insurance long before the 1980s.

In addition to these banking families, large companies hold millions of dollars in whole life insurance to help fund business expenses and earn favorable tax advantages.

You can even take a college course in whole life insurance.

Students can learn how to use the cash value of whole life insurance policies to fund whatever it is that is needed for themselves or family.

So how exactly do we use the whole life insurance policy as our own bank?

Whole life insurance provides a cash value benefit to policyholders.

Every time you make a premium payment, a portion of your payment is put towards a savings portion of your policy called cash value.

With each payment, the cash value accumulates at a taxed-free rate and can be utilized as needed and as you see fit.

Whether it’s to pay off debt, use it as a down payment on a house, put it towards your retirement income, or to purchase more insurance with a higher death benefit to leave the family more money, the cash is yours.

This is where the infinite banking system starts.

The cash can be accessed either through a withdrawal or a loan. The benefit of accessing it through a loan is, it does not disturb the compound interest in the policy.

With a whole life insurance policy, after the policyholder is gone, the beneficiaries of the policy will receive a guaranteed amount of money.

In addition to cash value accumulating at a tax-free rate, whole life insurance offers an income tax-free sum of money known as a death benefit.

The cash value of your policy is the amount of your death benefit the insurance company is making liquid to you.

If you were to cancel your policy while still living, the cash value is the amount the insurance company typically pays you.

But again, as long as your policy premiums are paid, the cash value of your policy can be used for personal and business loans with your policy as collateral.

Another thing to consider is there are two different types of whole life insurance: participating and non-participating.

The main difference between the two is that participating in whole life insurance policies allows you to participate or receive dividends based on the profits of the insurance company.

With non-participating policies, you do not participate or receive dividends from the insurance company.

If you use a participating whole life insurance policy for Infinite Banking, your cash value increases every time the insurance company pays dividends.

It also increases when you pay policy premiums and earns a guaranteed interest rate.

Essentially your “bank” consists of a portion of premiums paid (money from you) + guaranteed interest earned + potential dividends (money from your insurance company).

So instead of using a savings account in a bank that offers minimal returns, you save inside of your dividend-paying whole life insurance policy, where it grows tax-free with a higher rate of return and is essentially having your money work for you in two places at once.

Let’s look at some infinite banking case studies, so you can see firsthand how to use your cash value of your whole life insurance policy to create your own infinite banking system.

Infinite Banking Case Studies

Now that we better understand the crucial role whole life insurance plays in creating an infinite banking system, let’s see how this plays out in an actual real-life policy.

Integrity Financial group walks us through what they called a “Baby Smith Policy”, a policy created for a client’s son.

This case study does include dividends being paid out through the whole life insurance which is not always a guarantee, however earlier I discussed the best companies that pay out dividends each year.

In this case study, the client puts 200 dollars a month into a policy for 10 years.

The cash value doesn’t grow as quickly in the beginning, however, it starts to grow little by little, and eventually, the cash value amount exceeds what the parents have put into the policy.


Source: Integrity Financial Group

At age 16 the parents decide to take out a loan to buy a car for their son.

They are able to not only pay the policy back over the next 5 years but while doing so, the policy continues to grow.

The case study continues to highlight how the parents and eventually the son when he becomes the policy owner as an adult is able to buy another, and a house all using the infinite banking system through their whole life insurance policy.

This video explains in very simple and easily understandable terms how infinite banking can play out in your whole life insurance policy.

Next, let’s discuss the pros and cons of infinite banking,

Pros and Cons of Infinite banking

There are many pros and cons to Infinite Banking.

I will discuss both below to help you better understand and make an informed decision around how to best utilize an infinite banking system through your whole life insurance that works for you and your family.

Pros of Infinite Banking

  • Non-Correlated Asset
  • Liquidity and Cash Flow
  • Control
  • Leverage
  • Tax Benefits
  • Guarantees

Non-Correlated Asset

Whole Life insurance is an asset that is not tied directly to the stock market also known as a non-correlated asset.

Given how the stock market can fluctuate, whole life insurance provides a safer and more secure asset that does not change based on the market.

This is not to say you can’t or shouldn’t have assets tied to the stock market.

However, with Whole Life insurance’s guaranteed annual cash value growth, it provides a more stable way to manage your finances in a world that does not always offer that stability.

Next, let’s discuss how infinite banking improves your liquidity and cash flow.

Liquidity and Cash Flow

When you utilize your Whole life insurance as an infinite banking system, you automatically improve your cash flow and liquidity.

Whole Life insurance is an extremely liquid asset compared to other assets such as real estate, stocks, bonds, or other investment plans such as your 401(k) or IRA.

The other benefit to your cash flow is that you don’t need to go through the paperwork of getting a loan from a traditional bank.

You can request a policy loan from your insurer and funds will be made available to you.

Be mindful that the cash from your whole life insurance policy can be accessed either through a withdrawal or a loan.

The benefit of accessing it through a loan is, it does not disturb the compound interest in the policy which is an important distinction from taking a withdrawal

Make sure to check with your whole life insurance agent to see what makes sense for your specific situation.

Because whole life insurance is liquid, it serves as a valuable part of your financial foundation, acting as your emergency savings if you will.

Whether you run into unforeseen expenses such as medical bills, job loss, or costly home repairs, whole life insurance policy loans offer a safety net.

You can even use your insurance policy to pay yourself an income for any reason needed.

An example of how an infinite banking system through your whole life insurance policy can be used can be seen here:

If you had a $20,000 car with 100% equity (i.e. you owed zero), most people would tell you, “you are debt free”

However, what if you owed $20,000 on that same car, but you also had $20,000 in your whole life insurance policy earning tax-deferred compound interest)?

Would you still be debt-free?

In reality, you would have a 20,000 debt, but you would also have $20,000 liquid cash available for you whenever you needed it.

Your balance sheet would reflect ZERO overall debt.

At Paradigm Life, they advocate funding a whole life insurance policy as a savings vehicle before considering other investment strategies like real estate or the stock market as part of our Perpetual Wealth Strategy™, and refer to this type of portfolio structure as The Hierarchy of Wealth™.

The hierarchy of wealth

Source: Paradigm Life

Next, I will discuss how the infinite banking system provides control over your current finances as well as your financial goals and future.


Another benefit to infinite banking is you are in control of your financial assets through your whole life insurance policy, again you are your OWN banker.

Each time you loan your money from your policy to yourself, your family, your business, etc, you are charging interest.

The cash value growth in your policy is tax-deferred, and when you borrow against the cash value in your policy again, in the form of a loan, not a withdrawal the cash value continues to grow in your policy.

As an example of this, if you borrow $50,000, you are taking a loan from the insurance company. The company is using your cash value as collateral.

But the cash value still remains in your policy and still earns interest, plus any dividends.

So, even when you are using your cash value elsewhere, compound interest is still growing in your policy, essentially having your money in two places at once.

The result is that over your lifetime you have increased your financial assets through your policy.

Next, I will discuss how using your whole life insurance policy provides leverage for your infinite banking system.


The life insurance death benefit of a whole life insurance policy provides a leveraged payout in the early years should you die prematurely.

Having a lump sum death benefit provides peace of mind knowing that your loved ones are taken care of if you die young.

So the death benefit is there from day one, which is huge financial leverage dollar for dollar when you consider you only put a fraction of money into the policy.

Let’s think about this concept with other assets such as with your 401(k) or IRA.

In the event you pass away with money left in either of your qualified 401(K) or IRA yes, the remaining funds will still be passed onto your beneficiary.

However, it will be taxed as ordinary income (the highest taxed type of income).

While there is still the guarantee that your beneficiary will receive something, you can not guarantee the amount, due to future tax rates.

In contrast, with life insurance, the death benefit is tax-free.

With Whole Life Insurance, there is a guarantee that your beneficiary will receive a substantial amount of money that is also taxed free.

Next, I am going to discuss the tax benefits of infinite banking.

Tax Benefits

Whole Life insurance provides a variety of tax benefits.

In addition to the death benefit being tax-free, as stated above where I discussed it as a benefit in terms of providing leverage, the cash value growth in a whole life insurance policy is also tax-deferred.

Furthermore, you can also take out a loan against the cash value, and the whole life insurance loan is not taxed.

Lastly, dividends received from the insurance company that is given to the policyholder on an annual basis are also not taxable.

These are some of the ways that the infinite banking system gives you a tax benefit and advantage compared to banking in a more traditional sense.


A properly-structured participating whole life policy provides many incredible guarantees.

According to Guardian, based on your life expectancy, the insurance sets four guaranteed benefits

  1. Guaranteed level premium: As long as you keep paying premiums, the policy will stay in effect.
  2. Guaranteed Death Benefit: the amount paid to your beneficiaries will never decrease
  3. Guaranteed Cash Value: A cash value that is guaranteed to grow at a set rate each year until it is equal to the face amount of the policy at a specified age, typically age 100 or 121.
  4. Guaranteed Endowment: The death benefit is guaranteed to be paid if the insured is still living at the age specified in the contract, typically age 100 or 121.

Along with the above guarantees, you can also earn dividends through your whole life insurance policy.

While dividends are not always guaranteed, check out the Best Dividend Paying Cash Value Whole Life Insurance Companies.

Having a whole life insurance policy that will allow you to receive dividends is another way to ensure you can create an infinite baking system through your policy.

These guarantees are yet another reason why properly structured whole life insurance is the ideal tool for Infinite Banking.

Next, I will discuss the cons of infinite banking.

Cons of Infinite Banking

  • Qualifications
  • Mindset and Discipline
  • Not Diversified
  • Cost

While using Whole Life Insurance to utilize your infinite banking system, it does come with some downsides to consider when looking at your options.

I will discuss some of the cons of infinite banking below, and remember to always check with your life insurance agent to discuss the best options for your specific financial situation and goals.


Just like with many other financial plans and savings, one you must qualify for a Whole Life insurance policy.

As I have previously mentioned, a whole life insurance policy is more favored for infinite banking, and in order to qualify for an infinite banking policy, you must first qualify for a whole life insurance policy.

I will discuss later the difference between universal life insurance and whole life insurance when it comes to infinite banking.

For now, let’s focus on the qualifications needed for whole life insurance.

If you are looking to apply for whole life insurance, you may have to complete a medical exam to determine life expectancy based on health tiers. Once you are assessed for health, your tier stays the same for the remainder of your policy which means the healthier and younger you are, the cheaper your policy may be.

There is a great benefit in obtaining whole life insurance at an early age where your health is at its best. This will allow you to qualify for a lower premium that will remain the same for the entirety of the whole life insurance policy.

When applying for life insurance with health issues it is beneficial to have options and choose a company that you are more likely to be approved with. Again, speak with your life insurance agent to see what options are best for you and your specific situation.

A potential way to work around this is for some people who are unable to can’t qualify for life insurance for any number of reasons themselves is to get a policy on a loved one, such as a spouse.

Mindset and Discipline

Infinite Banking is a proven concept for growing and protecting generational wealth.

However, it is not always considered the norm or easiest way to finance such as 401K or IRA financial plans are often viewed.

Infinite Banking is an opportunity to level up and change your mindset and personal development and growth when it comes to your financial goals.

You need to be comfortable with taking your financial future into your own hands and have a clear and creative outline of your financial goals.

As Nelson Nash would say, You have to be an “honest banker.”

If you don’t pay back your policy loans (with the exception of using policy loans to fund retirement), you won’t see your wealth grow over the course of your lifetime and you be able to create generational wealth.

This means having discipline when it comes to your finances.

Being an honest banker also means being honest with yourself about your financial goals and the steps you will take to get there.

The infinite banking concept is not for the weary, however, if you have the right discipline and mindset, it can be achieved.

Infinite Banking is not about instant gratification.

If you have patience, like most things in life, you will be rewarded and the reward will be far greater than what a 401K or IRA plan can provide even if it appears to be the easier and safer way to invest.

Not Diversified

I am sure you have heard from financial advisors that it is important to diversify our assets and not put them all in one place.

One of the cons of the infinite banking concept is that you are putting all of your assets in one place, thus not diversifying them.

As I mentioned before, infinite banking is a non-correlated asset that is not tied to the markets.

This doesn’t mean your money won’t grow, we know it grows in the whole life insurance policy however it is only growing in one place as opposed to having a diverse portfolio.

Since all your money is only in your whole life insurance policy, you are breaking one of the lessons you have probably heard that you need to diversify your assets.

Just like the infinite banking concept requires a different mindset and discipline, it is also about taking a different approach to investing your money that may not go along with societal norms of investing.

Insurance and Estates bring up a very good point about diversification when it comes to the infinite banking concept.

“If you are practicing infinite banking you are using your whole life insurance as an asset to borrow against for the purchase of other assets. As you are doing this you are engaging in diversification by purchasing cash flowing assets”

Thinking about it this way, I would also argue that you are still diversifying your assets using the infinite banking system just not in the same way as if they were tied to the stock market.

Ultimately, when you utilize infinite banking into your financial growth strategy you will automatically diversify in order to maximize your policy and generational wealth.


Compared to term life insurance, the premiums for whole life insurance are significantly higher.

A Whole Life Insurance policy may not be the best option for someone who is living paycheck to paycheck.

However, it is important to be mindful that with whole life insurance you are not only paying for insurance.

You are working towards contributing a set amount into “savings” inside your insurance policy to be used by you how and whenever you choose while still earning money through dividends and compound interest in that same policy.

More on this later when I discuss the difference between life insurance vs whole life insurance for an infinite banking system.

In conclusion, there are many pros and cons to evaluate when making the decision to use your whole life insurance policy to create an infinite banking system for you and your future.

The pros far outweigh the cons, and with the right qualifications, mindset, and discipline, anyone can utilize an infinite banking system through their whole life insurance policy to maintain control, and ownership of their finances to create generational wealth.

The decision seems pretty simple to me.

If you are still unsure about the infinite banking concept, next I will discuss if infinite banking is for you.

Is Infinite Banking for you?

When you ask yourself if infinite banking is for you, you also have to ask yourself if whole life insurance is for you as I have discussed it is the most favorable way to create an infinite banking system.

I have discussed the pros and cons of the infinite banking concept.

If you are still unsure if it is right for you, here are some things to consider.

Infinite Banking provides a guaranteed return on money.

Infinite Banking provides fixed premiums through your whole life insurance policy

Infinite banking creates financial access through your cash value that you can use before death.

Another way to start thinking about if infinite banking is right for you is to consider your financial needs, goals, and timeline,

Do you need something for a shorter time period? Need protection for a more short-term, temporary need? Do you need something more permanent?

If you are in the business growing your financial wealth in more conservative and thinking about your long-term plan while wanting guarantees and who doesn’t, then infinite banking may be the better choice for you.

Building up the cash value in your whole life insurance policy may take some time, so it’s important to be patient and have a good understanding of your personal finances before committing to infinite banking.

You don’t want to repeat the same patterns and cycles that you may have previously used in budgeting personal finances when you invest in whole life insurance.

Again, going back to your mindset. Infinite banking is not something to just jump into, make sure you have a clear plan and mindset about your financial goals for the long term.

Another thing to keep in mind when deciding if infinite banking is for you is your income.

If you have a higher income and don’t have access to your other tax-deferred savings, whole life insurance, and infinite banking can be beneficial for you.

According to the college investor, “infinite banking works best when the person banking on themselves has extremely strong cash flow.”

In addition, if you have a lifelong dependent who will need care after you are gone, a whole life policy guarantees financial support for them without expiration dates or time-related terms.

When purchasing whole life insurance to utilize your infinite banking system, remember that policies are very specific to your needs and life expectancy.

The premiums are based on your life insurance needs and lifestyle, and there is not one specific cost.

Working with an insurance expert is the best way to determine the right plan for you.

Next, I will discuss the difference between Universal Life Insurance vs whole life insurance as it relates to infinite banking.

Universal life insurance vs whole life insurance as it relates to infinite banking

As I have discussed, using your whole life insurance policy for your infinite banking system requires patience, and more long-term thinking when it comes to financial goals, and is seen as more favorable for IBC.

Universal Life (UL) is seen as more “flexible” than whole life insurance, with variable options and premiums, flexible death benefits, and some types even replacing the steady growth of traditionally-managed cash value accounts with more aggressive options for the savings component.

Variable Universal Life and Indexed Universal Life Policyholders could put their cash value savings in a money market fund, accounts with earnings that trailed various stock, bond, and financial indexes, or even a range of “investments.”

With a Universal Life policy, your assets would no longer qualify as non-correlated which I previously discussed when looking at assets in your whole life insurance policy.

Universal Life Insurance may provide a chance for faster financial growth compared to Whole Life Insurance.

This discussion between whole life vs IUL may be a classic comparison between the tortoise and the hare as insurance and estates so perfectly put it.

Again, though as I have stated many times here, for infinite banking purposes, the tax advantages of whole life dividends do provide an advantage for long-term cash accumulation.

The question to ask yourself when deciding between Whole Life Insurance or Universal Life(UL) Insurance is are you working towards long-term financial gains or short-term?

If the answer is long-term, then whole life insurance is going to be the best option for you.

The chart below does a great job at summarizing the features of whole life insurance vs universal life insurance.

Whole Life Vs Universal

Source: Insurance and Estates

Infinite Wealth Consultants had the opportunity to sit down with financial advisors through a Linkedin community discussion to get their thoughts on UL vs Whole Life Insurance.

Here is an excerpt from that discussion.

Agent #5’s response:

“IUL’s have many issues. Most of which are never dis­cussed by agents sell­ing them. Over-Illus­trat­ing rates of returns greater than the gen­eral account earn­ings of the car­rier. Using derivatives/options to ensure these spreads from 3rd party insur­ers. Pre­mi­ums that are increas­ing in costs each year and become very expen­sive in retire­ment years for the client.”9p?987These prod­ucts have a very short his­tory and no proven track record of every com­ing close to their illus­tra­tions. Just because you can illus­trate a 6 – 8% return doesn’t mean it will hap­pen. In fact, over the last 10 years, IUL’s have per­formed close to fixed rates prod­ucts. Run an illus­tra­tion at 4% on an IUL and whole life with max [cash contributions in form of paid-up additions] and then com­pare. Look at both the guar­an­teed and non-guaranteed. Whole life has much more cer­tainty and destroys IUL on the guar­an­teed side. With IUL’s the cash value usu­ally gets com­pletely depleted and the death ben­e­fit goes away on the guar­an­teed side. The cost of the insur­ance is too great for the 3% guar­an­tee.”

Whole life is the only prod­uct I would rec­om­mend when imple­ment­ing a bank­ing pol­icy. Using IUL’s for bank­ing becomes very prob­lem­atic when illus­trat­ing real­is­tic ROR and when the client reaches retire­ment and the cost of the insur­ance con­tin­ues to sky­rocket each year, putting stress on the cash value to be used for banking.”

Clearly, this agent’s response favors whole life insurance for implementing the Infinite Banking system. If you would like to review more excerpts, check out the full article here.

Remember, when you utilize the Infinite Banking strategy using whole life insurance, your insurance policy’s primary purpose isn’t the death benefit, it’s the living benefits.

Your main goal isn’t protecting your loved ones financially if something were to happen to you—that’s an added bonus along with the living benefits you receive.

Deciding between short-term and long-term goals and outcomes for your financial assets is definitely a crucial factor to consider when contemplating an infinite banking system for you and your loved one.

The classic debate around the tortoise and the hare so perfectly applies to the debate between universal life insurance vs whole life insurance.

Perhaps the answer is simply in asking yourself if you identify as the tortoise or the hare?

How to Structure Infinite Banking System

Setting up the right policy requires specific steps to maximize the many benefits the Infinite Banking Concept provides through your whole life insurance policy.

There are many moving parts and things to consider as I have discussed throughout this guide.

Sean Brinson, a financial expert breaks down 3 steps to consider when structuring an infinite banking system that works for you.

Step 1

The first step you’ll need to take is finding a whole life insurance company that meets your specific needs and goals.

You want to always consider a whole life insurance company that is known for consistent and reliable annual dividend payments.

The annual dividends, while not always guaranteed will add to the cash flow of your whole life insurance.

Here are the Best Dividend Paying Cash Value Whole Life Insurance Companies to consider for your whole life insurance policy.

Once you have decided on a whole life insurance company to purchase a policy from, the next step is making sure your policy allows policy loans.

Step 2

Next, You must make sure your policy is eligible for policy loans.

Without this, your whole life insurance policy will not be successfully set up to maximize wealth through your infinite banking system.

There are two types of policy loans.

Direct recognition policy loans and Non-Direct recognition policy loans

Direct recognition policy loans don’t pay dividends on the money you’re borrowing.

For example, if you’ve got a $100,000 cash value and take out a $5,000 loan, you earn dividends only on the remaining $95,000.

Non-direct recognition loans pay you dividends even if you’ve taken out a loan on your policy. Using the above example, when you take out that same $5,000 loan, you’ll earn dividends on the entire $100,000. It’s still fully-funded in the eyes of the mutual life insurance company.

For an infinite banking system, non-direct recognition policy loans are ideal.

Step 3

Lastly, it’s crucial that your policy is a blended, over-funded, and high-cash value policy.

One way to maximize the already guaranteed cash value that whole life insurance policies provide is by including riders in your policy.

What are riders?

Riders are additional features and benefits that can be added to your policy for your specific needs.

Riders allow the policyholder to purchase more insurance or change policy conditions of future purchases.

One reason you may want to do this is to prepare for unexpected health challenges as one gets older.

Life insurance is much cheaper if you are young and healthy, so why not prepare before premiums get higher.

Having the option to purchase additional insurance earlier allows you to be prepared for unexpected life situations, such as terminal illness or chronic illness.

In this specific case, a portion of your death benefit can be utilized to take care of medical expenses while still living.

There are different riders that can be added to your whole life insurance policy.

A Paid-Up Additions Rider for example allows the policy owner to purchase more death benefits and increase the policy’s cash value growth.

Blended policies contain minimum whole life insurance and the maximum amount of paid-up level term insurance known as the “Paid-up Additions Rider.”

Paid-up insurance instantly adds cash value because you’ve purchased full death benefit insurance all at once.

Sean Brinson states “a regular whole life policy will take at least a decade before there’s any cash value in the account. However, when using the IBC and PUA riders, you pay more money upfront as a way to augment your cash value for personal banking (IBC). If you throw in an extra $10,000 or $20,000 upfront, you’ll have that money to the bank from the beginning. “

These are just some steps to take and consider when structuring your infinite banking system.

There are several steps to consider, and ways to think about structuring your infinite banking system including weighing the pros and cons.

It is always best to speak to your personal life insurance agent to see what structure makes sense for you.

Next, I will discuss Wealth’s Nation webinar as an additional tool to help you get started and how to maximize your wealth using your infinite banking system.

How to Maximize your Wealth from Infinite Banking

Wealth Nation is an excellent resource to utilize when wanting to learn more about infinite banking.

While they have many resources, this resource specifically discusses how to maximize your wealth using your whole life insurance policy for your Infinite Banking System.

According to Wealth Nation founders, some important things to consider and know before creating an Infinite Banking system in order to maximize it to its fullest potential are:

  • Results. What am I doing with the funds?
  • Understanding your personal finances
  • Focus more on generating assets
  • Level up and own your own lifestyle.
  • Simplifying for your family
  • Personal development is key

For more on these points, check out Wealth Nation’s youtube channel which provides a plethora of knowledge on infinite banking.

Getting Started with Infinite Banking

Now that we have discussed all the details of Infinite Banking, let’s get you started on creating your own Infinite banking system using your whole life insurance policy.

Wealth Nation has an amazing 1-hour in-depth webinar where you can learn how to properly set up your infinite banking system.

In just 1 hour, you will learn and walk away with the knowledge you need to make, use, and multiply your money as your own banker.

As discussed in the benefits of the IBC, this webinar will teach you to take control of your own finances which will give you the means to safely and quickly erase your debt, and grow your financial wealth and create a financial legacy for many years to come.

Once you have learned all you need to take control of your finances and how to become your own banker through the Wealth Nation, webinar, the next step is deciding on which company to utilize your new knowledge of IBC.

Check out the 10 infinite banking life insurance companies according to Insurance and Estates, to see which company works best for you and your financial goals.

Top 10 Infinite Banking Life Insurance Companies

  1. Penn Mutual
  2. MassMutual
  3. American United Life
  4. Foresters
  5. Guardian
  6. Lafayette Life
  7. Mutual Trust
  8. National Life Group
  9. Ohio National
  10. Security Mutual Life

Additionally, According to Forbes.com, the top three whole life insurance companies include AXA Equitable, Northwestern Mutual, Ohio National.

This assessment was based on insurers using data provided by Veralytic, a leading publisher of pricing and performance research and competitiveness ratings for cash value life insurance products.


Infinite Banking can be a great option for a variety of reasons.

Increased Cash Flow, Control over your finances, Leverage through your whole life insurance policy, tax benefits, as well as many, many other financial guarantees through your whole life insurance policy.

Honestly, what more can you ask for?

Wealth nation is here to support you in navigating whole life insurance to create an infinite banking system and generational wealth for you and your family for years to come.

Infinite Banking allows you to be independent, creative, gain and maintain control with your financing throughout your entire life and for years after.

While utilizing infinite banking does require you to play by a different set of rules, and while there are some cons I have discussed, maintaining an infinite banking system provides financial rewards and security for you and your family for many years to come.

With great risk comes great reward, and creating financial freedom and wealth can be done by simply doing the math and creating an infinite banking system for you and your family.

If you are looking for support or interested in learning more, please check out the Wealth Nation Youtube channel and website.