Infinite Banking 101: Series Part 3 – Using Your Policy to Access Cash

Now that you’ve built your infinite banking policy (in Part 2), it’s time to explore how to actually use it. The beauty of infinite banking is that you can borrow against your policy’s cash value to fund your needs, whether it’s for emergencies, investments, or opportunities that align with your financial goals. Here’s how you can start using your policy to create wealth and manage cash flow.

Step 1: Making Your First Policy Loan

One of the main benefits of infinite banking is the ability to access your cash value tax-free through policy loans. Unlike traditional loans, you don’t need to ask a bank for approval or worry about credit scores. With a policy loan, you simply borrow against your own cash value, and the process is quick and straightforward. Have you ever heard how wealthy people take loans against their stocks to get by since most of their net worth is tied up in stock or other assets that are either not liquid or expected to appreciate significantly? (Think Elon Musk with Tesla or Jeff Bezos with Amazon) This a popular strategy among the elite. You are essentially doing the same thing with the asset you have just created, your permanent insurance policy.

To take a loan, all you need to do is request it from your insurance company. The amount you can borrow depends on the cash value you’ve built up in your policy. The best part? You don’t have to follow a set schedule for repayment. You control how much and when to repay the loan, though interest will accrue on the amount borrowed.

Step 2: Setting Up Loan Repayment

When you take a loan, you have the flexibility to structure the repayment on your terms. You can pay back the loan over time or let it accumulate interest—whatever suits your financial situation. However, it’s important to stay on top of repayments to prevent the loan from affecting your policy’s cash value.

A key point here: Repaying the loan helps keep the policy healthy. If the loan isn’t repaid, the accumulated loan balance, including interest, will reduce your death benefit. It’s best to repay the loan as you’re able, to keep your policy working for you in the long term.

Step 3: Leveraging Your Policy for Investment Opportunities

Now that you know how to access your policy’s cash value, you can leverage it for investment opportunities. You can borrow against your policy to fund real estate purchases, business ventures, or even higher education. The beauty of this is that your policy continues to grow while you use the funds, creating a compounding effect as you earn dividends on the full cash value—even if some of it is being borrowed. Always do your own research, My suggestion will always be to invest in things you like and understand, but also treat it like a business. Policy loans should be meaningful. Some criteria I use for justifying a policy loan is it must sufficiently execute one of three things for me in my lifestyle. It must:

• Save me money (paying off debt)

• Make me money (create cashflow, increase networth, improve overall financial positioning)

• Increase fulfilment or improve quality of life (car upgrades, vacations, major gifts, home improvements)

By strategically using your policy to fund investments, you can build wealth outside of traditional investment vehicles, all while your policy continues to grow.

What’s Next?

Now that you understand how to use your policy and make the most of your cash value, it’s time to take action. If you haven’t yet set up your infinite banking policy, schedule a consultation with me here to get started and ensure you're on the right track.

If you missed it, be sure to check out Part 1 for the basics of infinite banking, and Part 2 for a detailed guide on building your policy the right way.

Infinite banking is a powerful tool for building wealth, gaining financial freedom, and managing your cash flow. Take control of your finances today and start creating the future you’ve always wanted!