What Is the Infinite Banking Concept?
Infinite Banking is a process of reclaiming the banking function in your life. You become your own banker by creating your own banking system with dividend-paying whole life insurance.
The first thing that makes this concept stand head and shoulders above the sea of financial products is that it is more than a product. It’s a strategy for using a particular product—a whole life insurance policy, to be exact.
Rather than comparing it to a particular make and model of a racecar, it’s more like a particular style of racing in that car.
Why The Infinite Banking Concept Is a Better Place to Store Cash
1) Provide Safety, Control, and Certainty
Infinite Banking will solve your risk and volatility problems as a place to store your cash where it’s safe and won’t lose value. This gives you control. You don’t have to wonder if your personal bank will be there tomorrow, or what it will be worth.
2) Accessibility
Your money is liquid. That means you can access money when you need it, without barriers or penalties. You won’t have to apply for or beg to use your own money. Instead, it’s as simple as, “It’s mine. I want to use it. Please send me a check.” and the check shows up in your mail.
3) Emergency/Opportunity Fund
Whether you want to buy an investment property, do a business expansion, buy-out another business, or even cover a medical emergency or home remodel, you have access to capital. Your money isn’t segregated, imprisoned, or quarantined. You can use it for whatever you want, whenever you want to use it.
4) Uninterrupted Compound Growth
It provides an alternative financing source outside of banks, credit unions, credit cards, or paying cash for major purchases. Instead of your only payment options being limited to loans and interest payments (Spender) or paying cash and giving up the ability to earn interest (Saver), you gain a third option. You get to earn interest, even while you’re using your cash (Steward). Life insurance policy loans allow you to become your own banker, earning compound interest without interruption, even while you put your money to work in another investment.
5) Competitive Rate of Return
Instead of the dismal .08% growth on bank savings that makes it seem worthless to keep cash, your cash grows faster. With Infinite Banking, you earn a rate much higher than other safe, liquid assets provide.
6) Reduce the Interest You Pay
Instead of paying a higher interest rate on uncollateralized loans, you get access to lower rates. How? This concept serves as the collateral that’s your ticket to lower rates and financing costs. Because you pay lower rates, you keep more of your dollars.
7) A Debt-Free Weapon
Whenever you have enough assets to pay off your loans, even if you haven’t done so, you’re not in debt. When you build an Infinite Banking system, you’re gaining a valuable asset that you could use to pay off loans. This doubles as a secret debt-free weapon.
8) Tax Benefits
Usually, the growth of your money incurs a growth of your tax bill. Instead, the growth inside is tax-advantaged. This shrinks your future tax liability and cuts unnecessary money leaks, so you keep more of your money.
9) Shrinks Opportunity Cost
When you stop losing so many dollars to interest and taxes, you don’t forfeit what those dollars could have done for you. Instead, you keep the dollar, put it to work, and maximize its potential.
10) Increases Protection
At the heart of Infinite Banking is a dividend-paying whole life insurance policy, which protects your income and ability to create wealth, whether you are here to see it through or not. It protects your human life value and your livelihood, ensuring that not even death can prevent you from building wealth.
As a private contract, it has built-in privacy because there is no public database where individuals can look up how much life insurance an insured has.
Also, because Infinite Banking can be used in business as well, it can fulfill the role of key man insurance, buy-sell agreement funding, or serve as an executive bonus.
11) Each Dollar Does More Than One Job
One of the features of The Infinite Banking Strategy is the ability to harness the power of the same dollars over and over again. This keeps your money in your personal economy. In all other tools, once you use the dollars, they are gone forever, and you’re never able to use them again. You get to recycle the same money and use it an infinite number of times.
12) Peace of Mind
Having money you can access when you need it fences out worry and stress. This gives you an abundance mindset that helps you focus on providing value and making more money.
13) Legacy Transfer
The Infinite Banking Strategy allows for one of the most efficient methods of transferring your legacy to the next generation. It keeps your estate intact, bypassing probate and arriving to your beneficiary’s income-tax free so they won’t lose huge chunks of your estate in the process.