Is Infinite Banking (IBC) the right fit for you?

I’ve been using whole life insurance to preserve capital, build alternate sources of financing, and be more resilient for about a decade. In helping others do the same thing, I’ve learned to recognize when someone isn’t ready to move forward with IBC.

Here are 3 common questions/comments that indicate you’re not ready.


“What’s the least amount of premium I can pay?”

This question screams whole life insurance is an expense rather than a centuries-old asset ideal for capital preservation.

Suppose you genuinely understand that IBC is a capital preservation and alternate financing solution. In that case, you will want to put as much money as the life insurance companies will let you into your policies. Think about it. You’re setting up a system to preserve capital for your entire life.

Wouldn’t you want as much capital as possible inside this system?


“I don’t care about the death benefit.”

I hear this common statement a lot from people starting to research IBC.

It’s like a real estate investor saying, “I don’t care about the value of the property.” That’s nonsense. A life insurance policy’s death benefit determines the policy’s capacity to preserve a lifetime’s worth of capital. The death benefit amount determines how much premium you can pay without losing some of the valuable tax benefits.

With a higher death benefit, you can preserve more capital and build a larger financing pool over a lifetime.


“Why do I have to pay interest to use my own money?”

The short answer is you don’t.

You have to pay interest to the institution lending you the money. In this case, the life insurance company is providing a loan. The collateral is your cash value, but it’s not your money. It’s like a home equity line of credit. The credit is based on your equity but is a loan from the bank. Meanwhile, your capital is still preserved and untouched, continuing to grow and support the underlying asset.

This question is the most significant indicator that the person I’m talking to doesn’t understand the concept of financing everything you buy (even when paying cash).


Thinking critically about any financial asset is healthy, and I encourage everyone to ask these questions.

Don’t move forward until you understand the asset’s purpose in your life.

What other questions or comments do you have about this powerful resilience-building strategy?

Do you have someone on your team helping you with these concepts? If not, please reach out to us at