Becoming Your Own Banker: Unlock the Infinite Banking Concept
Becoming Your Own Banker - The Infinite Banking Concept is a text about the power of dividend-paying whole life insurance. This book demonstrates that your need for finance, during your lifetime, is much greater than your need for protection
Digging Deeper into the Infinite Banking Concept
In Nash’s infinite banking concept (IBC), the cash surrender value(s) of whole life insurance policies act as collateral for a loan. The individual simply needs to call the insurance company and ask to take out a policy loan.
A whole life insurance policy is meant to cover the entirety of an individual’s life, not simply to assist family/friends in the event of the individual’s death. As such, the policy is eligible to pay out dividends, meaning it generates a form of income that increases the cash value of the policy over time.
As soon as the policy is active, it possesses value and can be borrowed against so that the individual can take money out of the policy as a loan (using the policy as collateral) to use for handling unexpected or significant expenses that occur during the individual’s life.
What is Infinite Banking? Infinite banking refers to a process by which an individual becomes his or her own banker. The infinite banking concept was created by Nelson Nash. In his book, “Becoming Your Own Banker,” Nash talks about the use of whole life insurance policies that distribute dividends and how owning such policies allows individuals to dictate the cash flow in their lives by borrowing against/from themselves instead of depending on banks or lenders for loans.