Is infinite banking a whole life insurance policy?

Bear in mind that infinite banking is not whole life insurance in and of itself but a concept, and the concept of infinite banking operates at its best when a properly structured whole life insurance policy allows you to act as your own banker. Why does whole life insurance work for infinite banking?

How does infinite banking work?

Infinite banking involves using permanent coverage, typically whole life insurance, as a personal line of credit. Whole life policies earn cash value at a guaranteed rate over time. Once you’ve accumulated enough, you can begin to borrow against your life insurance policy.

What is infinite banking in life insurance?

Infinite banking refers to a process where you can become your own banker by strategically using your whole life insurance policy to dictate cash flow in your life. What type of life insurance is best for infinite banking?