What is Infinite Banking?

Infinite Banking, Bank on Yourself, Be Your Own Banker, et. al. is all a notion of using cash value life insurance to accumulate wealth and then use that cash value to make certain purchases while not losing your ability leverage your earned wealth to continue to earn money on your money.  Through the use of policy loans, you have access to your policy’s cash value, but you don’t loose your ability to earn dividends on your policy’s cash value.

Couldn’t I Get the Same Return or Better on Something Else?

Probably, anything is possible.  But no savings vehicle has been able to rival the risk adjusted rate of return offered by permanent participating cash value life insurance.  It’s an extremely stable cash financial product that has worked for well over a century.  On top of that, other savings vehicles do not have the leverage-able power of policy loans and continued dividend payment.

What’s the “Best” Policy to Use

This depends on a few things, mostly intended use.  We don’t believe in endorsing any one product or any one company.  Though we’ll gladly admit that there are several that tend to be true winners.  If you’re really interested contact us

What is Blending?

Blending is the process of combining both base permanent life insurance and some term insurance together in one policy.  There are two main reasons to do this.  The first is to create a pseudo permanent policy at a reduced premium.  The second is to increase the Modified Endowment Contract and DEFRA limits on a policy to allow more cash to be placed into the policy.  Blending is a vital component to Infinite Banking as it allows for a cash rich policy, which is focused on maximizing cash value in the policy.

What is Dividend Recognition?

Dividend recognition refers to the way dividends are paid to a cash value life insurance policy.  There are two types: Non-direct Recognition and Direct Recognition.  Non-Direct Recognition means the dividend amount is not adjusted if policy loans are outstanding on the insurance policy (this is the preferred method for infinite Banking).  Direct-Recognition means the dividend is adjusted when there is a policy loan outstanding on the policy (usually the adjustment is a reduction in the dividend).  This can vary and having a policy that is direct-recognition is not a guarantee that you need to make a change.

(Insert Your Favorite TV/Radio Personality’s Name Here) Said Cash Value Life Insurance is a Bad Idea

And was he or she speaking specifically to you?  We know that there are others with different opinions, we respectfully disagree, and have yet to encounter someone who–after carefully reviewing the facts–continues to side with the big name TV personalities.

Do you Sell Insurance?

Yup, and very proud of it.  If you are looking into a policy we’d be happy to assist or offer to a referral in a case where we cannot be of assistance to you.  Please contact us for more information.

And if you’d like more information about our agency, you can find the web site here.