Is infinite banking a good investment?

In most cases, yes. Infinite banking is an overly complex strategy with significant fees, risks, and opportunity costs. It requires substantial, consistent premium payments, and there’s a risk of losing coverage if you can’t keep up with the premiums. Even if you can pay them, it may take 10 years before there’s enough cash value to borrow against.

What are the disadvantages of infinite banking?

The drawbacks of infinite banking are often overlooked or not mentioned at all (much of the information available about this concept is from insurance agents, which may be a little biased). Only the cash value is growing at the dividend rate. You also have to pay for the cost of insurance, fees, and expenses.

What is infinite banking?

What Is the Infinite Banking Concept? At its core, infinite banking is about becoming your own bank, rather than saving or borrowing money with a traditional bank. You do that by opening a whole life insurance policy (more on that shortly), then using that as a tax-friendly vehicle for holding money.