Is Infinite Banking Scam or Legit?

Recently, one of the major life insurance companies sent a memo to life insurance agents that do business with them. In that memo, they said they were not allowing agents to represent their policies as banking-style policies.

This includes Becoming your own banker, Infinite Banking, Bank on yourself or anything that utilizes cash value from the policy as a banking style.

This event had a massive ripple effect on the industry. So, the only question everyone is asking right now is – Is Infinite Banking scam or legit strategy?

Let’s unpack this and answer the question.

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    Why Life Insurance Companies Won’t Support These Agents Anymore

    To completely understand why this life insurance company made such a decision, we need to look closely at the memo they sent.

    In summary, they wrote the following: We do not support concepts that promote or position the purchase or sale of whole life insurance as personal banking or similar concepts focused on maximizing policy cash value and immediate and regular access through policy loans.

    Is Infinite Banking Scam or Legit?

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    And here are their reasons:

    Using strategies that position whole life insurance as personal banking or a similar concept is inconsistent with their policy because these strategies often:

    1. Are misleading to customers. Many agents don’t teach the real foundational components about how to do it properly.
    2. Are used with younger customers who have less disposable income or investment sophistication and often have no dependents and, hence, no insurance need.
    3. Promote large deposits and then early or immediate access through policy loans that are typical red flags for money laundering.
    4. Result in policies having a higher lapse risk if customers do not fully understand the impact of policy loans, interest accrual, and the likelihood that repayment will be required, especially in rising interest rate environments.

    Let’s go through each argument.

    Many Agents Don’t Teach the Real Foundational Components 

    It’s a massive problem in today’s business world—many people will tell half the truth or hide the important details. Unfortunately, this also refers to some insurance agents.

    However, it doesn’t mean that all insurance agents are scamming people. We, as a society, must be extra careful regarding our finances and trust, but not all people and companies are swindlers.

    That’s why we put an accent on educating people here at Wealth Nation. We’re talking about all the nitty-gritty details about our decisions and steps in the past so that you can learn from our mistakes. We also love to share everything we did that was a good practice and can be helpful to other individuals.

    In fact, we’ve launched the Money School Community so we can continuously learn from each other and share our experiences. 

    Young Customers

    Again, they’re totally right. The insurance agents who were tricking people with Infinite Banking mostly did it with younger people. And it’s associated with poor education about the concept and insufficient information.

    This certainly doesn’t mean young people shouldn’t get a whole life insurance policy or start their personal banking system. There is no better time to get a permanent life insurance policy than when you’re young and healthy, and your premium will remain the same throughout your entire life.

    We still understand why they mentioned this in a memo—young people must know everything about the process they are starting and be aware that this won’t be an overnight success. Reaping the benefits from this strategy comes only after smart money moves and a lot of discipline.

    Money Laundering

    This is an area where people can launder money, but once again, it doesn’t mean everyone is doing it. There are ways to check and find out whether someone is doing that or not. And that’s why we have different institutions that make sure everything is legal.

    Traditional banks also must follow specific rules and regulations, so it also refers to a system of banking yourself. Can you imagine what would happen if no one followed the rules?

    Higher Lapse Risk

    And the last reason why the company sent a memo to the agents they were working with is also linked to the educational factor. If people knew exactly how the process works and what they could and could not do, there wouldn’t be as many collapsing policies.

    So, Is Infinite Banking Scam?

    As you saw, the Infinite Banking Concept isn’t a scam by itself. Unfortunately, some people use it to scam other people.

    However, there is a way to make sure this doesn’t happen to you—educate yourself and research as much as possible.

    A great way to start learning about whole life insurance policies and how to utilize them is to read our previous blogs, watch our YouTube videos, and join our community.

    Wealth Nation Is Approved 

    Wealth Nation has a contract with one of the major life insurance companies, which means we meet all the requirements and have the right to educate and sell properly designed whole life insurance policies. Even though they stopped supporting some agents who were doing the same concept as we do, it is because they didn’t do it correctly.

    In no way, shape, or form is Infinite Banking designed to scam people. In fact, it is a concept that has been known for a century now. Many wealthy families and American brands used this method to build generational wealth and create the family bank.

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    And there is no reason why we should stop doing it. We just need to be sure who we trust and where we get information.

    How We Do Things At Wealth Nation

    Here at Wealth Nation, we put all our efforts into educating people. And we do it transparently and honestly.

    We took this concept a step further because we believe that everyone deserves to have a system that works for them, not against them. We don’t need to be born into wealth to be able to finance our dream lifestyle and build a legacy for our families.

    We’re on a mission to help everyone own their own lifestyles through the concept we developed. We’re talking about Lifestyle Banking.

    Before starting Lifestyle Banking, we were in $140,000 debt. We didn’t have control over our finances or know how to break the debt cycle. Once we found out that there was an alternative way no one ever taught us, our lives started to change.

    The change from being in so much debt to being able to start your own business and live freely is enormous. Everything changed—from our perspective and money mindset to specific financial methods and investments we made.

    And then we realized that if we did it—everyone else could. We wanted to start teaching people how to improve their financial situation using an alternative method no one mentions.

    In the last couple of years, many new people started talking about building wealth and becoming financially independent, but many of them didn’t emphasize the importance of learning about the money mindset and psychology of money. That’s why some people tried to start personal banking systems and failed—they didn’t have enough knowledge or the right mindset to succeed.

    We provide a lot of free materials for anyone who wants to learn about whole life insurance policies, Lifestyle Banking, and the psychology of money through our YouTube videos and blog posts.

    When people have enough information, they can decide if Lifestyle Banking is for them or not. 

    And the truth is, this system is not for everyone. At least, not at any time. 

    To have your own banking system, you need to be self-disciplined, know how to manage your time and money, and learn, think, and plan a lot. Of course, everyone can eventually get to the point where they are ready, but it requires hard work on your part.

    Running your own banking system is much easier if you have like-minded people who can support you and provide relevant resources. That’s why all our policyholders are active members of the Money School community, where they regularly meet people who are on the same path as they are.

    Here at Wealth Nation, we’re dedicated to helping and serving every individual who wants to learn and improve.

    Do you want to check for yourself that we’re legit?