top of page
.png)
Infinite/Private Banking
What if your business could be its own bank—earning, borrowing, and growing money tax-free… without ever relying on traditional banks again?
Specifically, one that’s properly structured for cash value growth as your own private banking system.
By Using Private/Infinite Banking Through Life Insurance, You Get to:
✅ Build tax-free cash reserves inside your business
✅ Access funds anytime—without asking a bank for permission
✅ Protect your company and family with life insurance benefits
✅ Keep your money growing, even while you’re using it
Here’s how it works:
1. Buy a Whole Life Insurance Policy
• The policy is set up with a strong focus on building cash value (not just death benefit).
• You pay premiums, and over time, the policy accumulates guaranteed cash value plus dividends (from a mutual insurance company, if it’s participating).
2. Build Cash Value
• The cash value inside the policy grows tax-sheltered.
• You can access it through policy loans or withdrawals.
3. Borrow Against Your Policy
• Instead of going to a bank for loans, you borrow money from your own policy’s cash value.
• The insurance company lends you the money, using your policy as collateral, while your cash value continues to grow as if it were never touched.
4. Pay Yourself Back
• You set repayment terms (just like a bank loan).
• When you repay, you’re essentially “recycling” your money, allowing you to use it again and again for future needs—like buying a car, funding a business, real estate, or even retirement income.
5. Wealth Transfer
• When you pass away, your beneficiaries receive the death benefit (tax-free in most cases), regardless of any outstanding loans (the loan amount is deducted).
Why is it called “Infinite Banking”
Because your money can flow in a continuous cycle—earn, borrow, repay, reuse—creating a “personal bank” that you control, instead of relying on traditional banks.
Advantages:
• Guaranteed growth + potential dividends
• Tax advantages (tax-deferred growth, tax-free death benefit, tax-advantaged loans)
• Liquidity & access to cash anytime
• Use the same dollar multiple times (opportunity cost advantage)
Disadvantages:
• Requires long-term commitment
• Premiums are higher than term life insurance
• Needs proper policy design, otherwise it won’t work well
• Not everyone qualifies medically
👉 Many people use it as a wealth-building and financial freedom tool, especially entrepreneurs and investors, since it gives them access to their money without banks’ restrictions.
.png)
Let’s Look at How Infinite Banking Works Through an Example
If you are buying a Car:
Traditional Way – You need to borrow money through a bank or cash
• You want to buy a car for $30,000.
• If you finance through the bank, you pay interest to them over 5 years.
• If you pay cash, you avoid interest—but you lose the opportunity to grow that $30,000 elsewhere (opportunity cost).
Either way, your money is gone once you spend it.
Infinite Banking Way
1. Build Cash Value
• Over time, you’ve built up at least $30,000 of cash value in your whole life insurance policy.
2. Take a Policy Loan
• You borrow $30,000 against your policy.
• The insurance company gives you the money, using your cash value as collateral.
• Meanwhile, your full $30,000 cash value keeps compounding inside the policy as if you never touched it.
3. Buy the Car
• You now own the car, but you didn’t drain your cash value.
4. Repay Yourself (Like a Bank Loan)
• You decide to “be your own bank” and make monthly payments back into the policy loan.
• Let’s say you pay yourself back with 5% interest (same as if a bank financed you).
• That interest goes back into your system, not to the bank.
5. Cycle Repeats
• After the loan is repaid, you have your car and your cash value has grown even more.
• Next time you need money (for a business, real estate, vacation, etc.), you can do it again.
Key Advantages:
• Your money works in two places at once:
• Growing inside the policy
• Funding your purchase
That’s the “infinite” part—you’re recycling dollars instead of losing them forever.
bottom of page