What Is Infinite Banking?

How it works, who it fits, and mistakes to avoid.

What Is Infinite Banking?

Infinite banking is a strategy using participating whole life cash value and policy loans for controlled personal financing. It is a discipline framework, not a shortcut.

Core idea: control liquidity while preserving long-term policy health.

How It Works

  1. Design policy for long-term efficiency.
  2. Fund consistently so usable value builds.
  3. Use loans intentionally for defined purposes.
  4. Review in-force statements annually.

Pros and Cons

Pros

  • Liquidity access without policy surrender
  • Permanent protection can remain active
  • Structured financing habit

Cons

  • Complex and easy to misuse
  • Loan balances can pressure policy
  • Underfunding can degrade long-term results

FAQ

Is this for everyone? No — best fit is long-horizon, disciplined funding behavior.

Is term used? Usually no — commonly built on participating whole life.