What Is The Infinite Banking Concept?

/ Published:

31 May 2026

/ Updated:

31 May 2026

/ Read Time:

2 minutes

In Brief:

The Infinite Banking Concept® is a financial strategy that teaches you to reclaim the banking function using properly designed, dividend-paying whole life insurance. It is not an investment strategy or a get rich quick scheme. It is a long-range system for financing life’s needs while maintaining liquidity, control and intergenerational stewardship

The Core Idea

Control

You Control Access to Your Capital.

Access

Cash is available without selling assets.

Growth

Access capital without withdrawing or selling.

Protection

Provides protection for those you love.

Legacy

Build a system that can serve future generations.

How The Infinite Banking Concept Works

Capitalize

Fund your private banking system

Grow

Cash value grows according to the contract

Access

Borrow against your cash value with policy loans

Use

Use the money for needs and opportunities

Repay & Reuse

Build a system that can serve future generations.

The Best way to understand the Infinite Banking Concept® is to study the book

Buy Becoming Your Own Banker

5 Rules of IBC

Think Long Range

Don’t be afraid to capitalize

Don’t steal the peas

Rethink your thinking

Don’t Do Business with Banks

Key Principles

You Finance Everything You Buy

Whether you borrow from a lender or pay cash, every purchase is financed. The question is not “finance or pay cash?” The question is “Who benefits from the financing?”

Wealth Must Reside Somewhere

Wealth always has a home. IBC shows how to place your wealth where it can be liquid, protected and grow without withdrawing and interrupting growth.

What the Infinite Banking Concept is Not

Not an Investment

Not a Tax Loophole

Not a get rich quick scheme

Not whole life insurance

Not for everyone

Common Questions about IBC

Is the Infinite Banking Concept an Investment?

No. IBC is about how you finance the things of life — not about rates of return.

Is The Infinite Banking Concept Whole Life Insurance?

No. The whole life policy is the vehicle; IBC is the process of controlling the banking function (storage, movement, and repayment of money) for yourself rather than surrendering it to a bank.

What does “reclaiming the banking function” mean?

The banking function — storage, movement, and repayment of money — happens in your life whether you control it or not. IBC is the process of redirecting that function through a system you own and control.

Does my cash value stop growing when I take a policy loan?

No. Because you are borrowing against your cash value rather than withdrawing from it, the full cash value continues to earn dividends and grow according to the policy contract while your loan is outstanding.

Do I Borrow My Own Money?

No. You borrow the insurance company’s money using your death benefit as collateral, which means your cash value continues to grow uninterrupted while the loan is outstanding.

Can I still invest elsewhere?

Yes. IBC doesn’t replace your other financial activities — it’s a system for flowing money through your private banking structure first before deploying it anywhere else.

Why would I pay interest on a policy loan?

Because you’re borrowing the insurance company’s money, not your own — and the interest you pay goes back to the mutual company which shares its profits with you as an owner.

What happens if I don’t repay the loan?

Unpaid loans accumulate interest and reduce your death benefit; if the loan balance ever exceeds the policy’s cash value, the policy can lapse, so disciplined repayment is essential to keeping the system working.

Review our full FAQ Section >