"The Infinite Banking Concept®”
Becoming Your Own Banker
Through High Cash Value Life Insurance
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Alan M "With all of the uncertainty in today’s markets, I wanted to find a safe haven to keep my money while also being able to access funds without restrictions and penalties seen in traditional IRA’s and retirement plans."
David M "I wish I had been introduced to these financial tools years ago. It has given me peace of mind in these troubling economic times. I now have a financial map to a solid retirement income. My short term and long term future is secure which removes the stress of what to do in protecting my finances."
Andy S "My wife and I are very risk averse, so guarantees are a big appeal to us. Couple this with the fact that we have ready access to the majority of our money. This strategy just really aligns with our interests."
Rahul A "I have been able to take full advantage of several opportunities and not worry about several high expense issues that have come up over the last 2 years. It has allowed me to invest in great real estate at low prices when banks were not loaning money."
3 Things You Might Be Interested In...
What is the Infinite Banking Concept®?
The Infinite Banking Concept® is a robust financial strategy designed to put you in 100% control of your finances. You’ll learn how to keep more of the money you make, and stop losing it to taxes, banks, and lenders.
What is High Cash Value Life Insurance?
High Cash Value Life Insurance is the fuel for the Infinite Banking Concept®. It is a specially designed insurance policy packed with cash you can use to make purchases, investments, or simply let grow.
What is the Infinite Banking Info Kit?
We’ve been teaching these concepts for over 20 years. The Info Kit is designed to get you the knowledge you need in the easiest way possible. It’s packed with free videos, books, and case studies to help you learn more.
"I wish I would have been smart enough to do this 20 years ago" -Amy
What is the Infinite Banking Concept?
The infinite banking concept was first brought to the world’s attention by Nelson Nash, author of Becoming Your Own Banker. This concept involves financing your life through the use of life insurance. While the concept could have been put into action prior to Nelson Nash’s book, he was the first to bring this idea to the masses.
Nelson Nash came up with the infinite banking concept in the early 1980s. Nelson had been big into investing and found that the loans he would normally take out from the bank were, as they are today, high in interest. Nelson came to the revelation that his whole life insurance policy had just enough money in it to cover all of his current real estate debts. The problem was, Nelson never truly thought about the concept before or what the massive benefits would be.
What the Concept Involves
Whole life insurance is life insurance that a person is able to take money from after a certain age. Some policies differ from one provider to the next, but typically, a person will need to be 59 years of age before they can start to take money out of their policy. Policies, however, work in two distinct ways.
- Savings: Some policies are converted into savings after a predefined period of time. This money is paid out to the beneficiary when a person dies, but can also be utilized while a person is alive.
- Dividends: Since money is invested by the insurance company, many pay dividends to their clients. This is the other form of income that can be produced from these policies.
While there are many benefits to this concept, it is essential to understand the basics. A policy holder has, after a predefined age, the right to take money out of their insurance policy for whatever it is that they need. These logistics are always mentioned and written into the initial policy contract.
How the Loans Work
Infinite banking may just seem like another loan, but it is not. The way these loans work is rather simplistic and can be better understood with an example.
- A person takes out a $100,000 policy that has been guaranteed by the insurance company.
- A policy holder pays their monthly payments to build up the value of their policy. (This can also be done with higher payments made to satisfy the policy faster.)
- As more money is paid into the account, the policy holder will have a “cash value” that they will be able to take money from.
When a person has accrued enough of their cash policy to withdraw money, they will be able to take a loan out on their policy whenever they see fit. This loan is not subjected to credit checks or applications. Rather, this is seen as the money that has already been paid into the policy which means that the policy holder has access to these funds at any point in time.
Obviously, there must be a benefit to taking out a loan straight from a policy. The following benefits make it well worth the effort to use infinite banking:
- Money can be taken out for a new home, vacation or anything a person wants to finance. There are no questions asked and no explanation is needed before a loan has been taken out.
- Money that you have paid into a policy is taken out. What does this mean? Loans are interest-free.
- While money is taken out, the remaining money will still receive interest based on the entire policy amount. If you have a $100,000 policy, but have taken out a loan for $20,000, the policy will still receive interest based on the full policy amount.
- The “loans” can be paid back so that a policy is always fully satisfied and future loans can still be taken out.
What Happens to Cash Not Paid Back
If the cash value is not paid back before a person’s death, this amount will simply be deducted from the total value of the policy. Using the above example, if a person took out a $20,000 loan on their policy and died before paying back a cent, their beneficiaries would still receive $80,000.
The infinite banking concept is a way to generate wealth in the same manner that financial institutions do. When investments take place, a person will typically take out a loan or finance it with cash. However, this leaves them with high interest rates and less overall profits as a result. If a person that uses this concept wanted to buy a thriving business that has shown annual profits, they can do so with the money that is in their whole life insurance policy. This means that the policy holder will not be subject to high interest rates or have to satisfy large payments. Rather, they can pay back the loan as they see fit while they let their investment make them money in the process. This is the solution to stop paying banks and keep more money in your pocket in the process.