Infinite Banking as a Line of Credit


The late R. Nelson Nash, the author of Becoming Your Own Banker and creator of the Infinite Banking Concept said, “Banking is a process. Whether or not you choose to participate is irrelevant… It will happen regardless.” As an authorized practitioner of IBC, we seek to teach our clients about how money flows and how they can opt in to participate more in the process. The first step to taking control is reimagining the capabilities of cash with regards to opportunities to grow your wealth. 

Whether you are a business owner, real estate investor or high commissioned salesperson, you are likely successful because you understand the limitations of cash on hand and seek to reinvest as often and as much as possible. Seeking to maximize your ROI at every possible turn is the chief aim of any successful business person. Therefore, this would be the question, “why all the talk about cash value when it comes to infinite banking?” The answer:  Life Insurance is an “and asset” not an “or asset.”

Simply put, you participate in infinite banking as a process by funding your policy AND that real estate property, business, or other opportunity. It’s time for people to start viewing their cash in their life insurance policies as a line-of-credit that can be accessed and deployed. The secret to this of course is by borrowing against your cash surrender value, you continue to compound on your gross cash value, not the net number. And most companies have fixed loan rates for the life of the contract to ensure that your borrowing potential may never be compromised. If you control the banking function in your life, you will start to regain control. 

Accessing cash in a policy to deploy into other opportunities has been a long-standing American entrepreneurial tradition. Ray Kroc, Walt Disney, and countless others have done this exact thing to breathe life into their respective dreams. These days you can leverage money at a low fixed rate and have total control over your payback schedule. All the while, you continue to earn on the gross cash value in your overfunded whole life policy. Shifting your thinking to being an owner instead of a customer can unshackle you financially and allow you to really expand your empire.