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.

What is Strategic Self-banking (infinite banking)?

It’s been around for centuries but the term gained popularity 20 years ago when Nelson Nash coined it in his book: Becoming Your Own Banker: Unlocking the Infinite Banking Concept. Strategic Self-Banking aka Infinite Banking seeks to treat life insurance as an asset with its prime focus on dividend-paying, whole life insurance.

What are the benefits of infinite banking life insurance?

Another protection that is often touted for the infinite banking concept life insurance is protection from creditors in the case of lawsuits. It’s worth noting that this is not determined by the life insurance company or any special IBC company you choose, but rather by the jurisdiction.

How much money do you need for infinite banking?

In order to make IBC work, you will need to have a cash value life insurance policy with sufficient cash value to borrow against. There really isn’t a specific amount of money needed for infinite banking. It depends on your financial goals and needs as well as how soon you need to access money for the concept.