Infinity Banking

Infinity Bank

While there are several benefits to using a whole life insurance policy as your private bank, perhaps the two biggest draws are its tax advantages and guaranteed growth compared to a bank savings account, CD, or share certificate. Namely, you can often expect a greater rate of return—plus potential dividends—and you can access this growth without owing taxes.

If it sounds too good to be true, it could be. Most whole life insurance policies aren’t structured to support an infinite banking system, meaning they grow wealth incredibly slowly. The slower your policy accumulates wealth, the less advantageous it is and the longer it takes before you can use your policy to fund purchases, investments, or your retirement. However, with a properly structured policy, reducing reliance on traditional banks and protecting your wealth from market volatility can happen sooner than you think.