What is the Infinite Banking Concept (IBC)?
The Infinite Banking Concept (IBC) is a financial strategy that allows you to use a specially designed whole life insurance policy as your own private banking system. Instead of relying on traditional banks, you build and control your own wealth by borrowing against your policy’s cash value, earning uninterrupted growth, and recapturing the interest you would normally pay to lenders.
How does the Infinite Banking Concept work?
IBC works by leveraging a high-cash-value whole life insurance policy with a mutual insurance company that pays dividends. Here’s how it functions:
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Fund the policy – You contribute premiums, which build cash value.
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Earn uninterrupted growth – Your cash value grows tax-free, regardless of whether you take a loan.
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Borrow against your policy – Instead of using a bank, you take policy loans at competitive interest rates.
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Repay yourself instead of banks – As you repay your policy loan, you keep both the principal and interest within your financial system.
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Create generational wealth – The tax-free death benefit provides a legacy for your family.
Why use a whole life insurance policy instead of a bank?
Traditional banks control access to your money, charge interest, and dictate lending terms. With Infinite Banking, you control your money. Your cash value grows tax-free and is protected from market fluctuations. You can borrow against it anytime without credit checks or approval from a bank.
How do policy loans work?
A policy loan is when you borrow against your cash value. Instead of withdrawing money, you use your cash value as collateral and take a loan from the insurance company. The benefits:
✔ Your cash continues to grow as if you never took out a loan.
✔ No credit checks or approval process.
✔ Flexible repayment schedule—you decide when and how to repay.
✔ You recapture interest instead of paying it to banks.
Do I have to repay policy loans?
While there’s no required repayment schedule, it’s in your best interest to repay the loan to restore your borrowing capacity and avoid unnecessary interest accumulation. Be an honest banker. If you don’t repay, the loan balance will be deducted from your death benefit.
How is Infinite Banking different from a 401K or IRA?
Infinite Banking:
Liquidity/Access to cash
Tax-free growth & withdrawals
Control how and when you use funds
Market Risk: No
Guaranteed Growth
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401K/IRA:
Restricted until 59½
Taxed on withdrawals
Government sets rules
Market Risk: Yes
Growth is tied to stock market
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Unlike retirement accounts, IBC gives you full control of your money without penalties or restrictions.
What happens if I stop paying premiums?
If structured correctly, the policy can be self-sustaining after a certain period. You may also have options such as:
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Using dividends to cover premiums.
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Reducing your policy to a paid-up status.
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Using cash value to pay premiums.
Your policy won’t lapse immediately, and you’ll have flexibility depending on your financial situation.
Are policy loans taxable?
No. Policy loans are not taxable as long as your policy remains active. If a policy lapses or is surrendered with an outstanding loan, the gain portion of the loan may be taxable.
How much money do I need to start Infinite Banking?
There’s no one-size-fits-all amount. Your premium is based on your financial goals and cash flow. You can start with a few hundred dollars a month or a larger lump sum. A properly structured policy should fit within your budget while maximizing cash value growth.
The great thing about the Infinite Banking Concept is that it works at any level—whether you’re just getting started or already building wealth.
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For those with limited funds or debt: You can start with an amount that fits your budget. Even small contributions can build momentum, giving you a place to store and grow your money while maintaining access to it. The key is just starting, so your dollars work for you instead of flowing away to banks and lenders.
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For those with more capital: The more you put in, the more your policy can generate in guaranteed growth and accessible capital. If you have money sitting in low-earning accounts, reallocating it here lets you multiply its use—building wealth, financing investments, or funding major purchases, all while keeping control.
No matter where you start, the goal is the same: redirecting cash flow back into your control rather than giving it away to banks, lenders, or lost opportunities. The best time to start? Now, with what you can. As your situation improves, you can scale up and maximize the benefits.
Can I use Infinite Banking for real estate investing?
Yes! Many real estate investors use Infinite Banking to:
✔ Fund property purchases without bank loans.
✔ Cover down payments or renovation costs.
✔ Recapture interest and reinvest in more properties.
✔ Create tax-free income during retirement.
Your policy acts as your private lending bank, giving you the flexibility to invest while your cash value keeps growing.
Can I use my Infinite Banking policy to pay off debt?
Yes! Infinite Banking can be used for debt elimination by replacing high-interest loans with policy loans that you repay to yourself. This allows you to recapture interest, improve cash flow, and create long-term financial security.
What happens when I die?
Your beneficiaries receive the full death benefit, tax-free, regardless of any outstanding policy loans. If you have an outstanding loan balance, it will simply be deducted from the death benefit.
How do I get started with Infinite Banking?
The best way to get started is to schedule a free consultation where we can:
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Assess your financial goals.
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Design a customized policy that fits your needs.
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Answer any questions you may have.
→ Schedule Your Free Call Today!