Introduction to Infinite Banking

Lesson 1 of 5

Lesson
5 min

What is Infinite Banking?

The Banking Function

Every person needs banking services throughout their lifetime. The question isn't whether you'll use banking—it's whether you'll control the banking function or let someone else profit from it.

Key Concept

Infinite Banking is about becoming your own source of financing by using a specially designed whole life insurance policy as your personal banking system.

The Traditional Banking Model

  • You deposit money and earn minimal interest (often less than 1%)
  • The bank lends your money to others at 5-8% or higher
  • When you need to borrow, you pay them interest on your own money
  • The bank profits from the spread, while you lose opportunity cost

The Infinite Banking Model

  • You build cash value in a dividend-paying whole life policy
  • Your cash value grows tax-deferred and compounds
  • You borrow against your policy, keeping your money growing
  • You recapture the interest you would have paid to banks

The Power of Control

By becoming your own banker, you eliminate the need to qualify for loans, avoid credit checks, and maintain complete control over your financial destiny.