Infinite Banking 101: Series Part 1 – Getting Started
You may have heard the buzz around infinite banking, but what does it mean for your financial life? In short, infinite banking is a way to “become your own bank,” using specially designed whole life insurance policies to build financial freedom, even without a traditional bank.
Infinite banking can sound complex, but we’ll break it down into a three part series. In Part 1, let’s lay out the basics to get you started.
What Is Infinite Banking?
Infinite banking is a strategy that allows you to build and access your money through a whole life insurance policy. Unlike standard savings accounts or investment accounts, this approach has a key difference: Your policy builds cash value that grows tax-deferred, meaning you’re not paying taxes as it grows. And because you own the policy, you control how and when to access that cash.
With infinite banking, you venture to create your own financial ecosystem where you don’t need to rely on credit cards, loans, or outside financial institutions to fund life’s expenses. Your policy’s cash value is available to you through policy loans, which you can repay on your own terms.
How Does It Work?
Think of infinite banking as setting up a private, controlled savings fund. You’ll start with a whole life insurance policy that’s been customized for infinite banking. By paying premiums, you’re building a cash reserve that grows over time. Because these policies include a death benefit and living benefits, you’re also protecting your family financially.
You’ll reach a point where you can borrow against this cash value, essentially lending yourself money. The policy cost basis (the total amount of premium paid into the policy) remains intact, growing as though you hadn’t borrowed against it—so you can keep earning even while you’re using the funds. You are then able to give your dollars multiple jobs instead of just one, which compounds their effect. You are actually using the insurance companies money while your money is safely growing and compounding over time.
Why Infinite Banking Works for Financial Freedom
Infinite banking isn’t about a quick payoff; it’s a long-term strategy that builds financial resilience over time. You’re in control—no bank approval, no credit checks, and no interest paid to outside lenders. Plus, over time this method can fund everything from emergency expenses to major investments.
In this series, we’ll dive deeper:
Part 2: Building Your Policy – Discover what goes into customizing a whole life policy for infinite banking.
Part 3: Using Your Policy – We’ll cover how to make your first policy loan, use the cash value, and set yourself up for continuous growth.
Infinite banking can be life-changing once you understand the ins and outs. It’s time to step into the driver’s seat of your financial life!
