Close Menu
    Latest Category
    • Finance
    • Tech
    • EU Law
    • Energy
    • About
    • Contact
    EUbusiness.com | EU news, business and politicsEUbusiness.com | EU news, business and politics
    Login
    • EU News
    • Focus
    • Guides
    • Press
    • Jobs
    • Events
    • Directory
    EUbusiness.com | EU news, business and politicsEUbusiness.com | EU news, business and politics
    Home » Infinite Banking: What Is It and Should You Use It?

    Infinite Banking: What Is It and Should You Use It?

    npsBy nps26 September 2020Updated:4 July 2024 No Comments3 Mins Read
    — Filed under: Focus
    Share
    Facebook Twitter LinkedIn Pinterest Email

    If you spend some time browsing topics on investing, insurance, business, and banking, you’ve likely come across infinite banking. For many, it’s likely a new concept that is somewhat confusing. How can there be infinite banking?

    We’ve taken this concept and broken it down into a detailed guide to see if it works for you and how you could benefit from implementing an infinite banking strategy.

    The Basics ? Understanding Infinite Banking

    Whole Life Insurance Basics

    Infinite banking falls under a whole life insurance policy. Before we dive any further, we first need to understand this type of life insurance.

    Whole life insurance is a type of coverage you purchase for personal insurance. It’s a popular type of permanent life insurance that lasts for the policyholder’s entire lifespan. Upon the policyholder’s death, the beneficiary receives the death benefit, as long as premium payments were made. A central component of whole life insurance that makes it a popular option is the added savings component called the cash value, that you can build up over time and borrow against.

    The cash value works in a few ways. One way is that the policyholder can make more premium payments than scheduled. The additional payments would go to the cash value.

    On the other hand, the policyholder can reinvest the dividends attached to the insurance policy. These dividends are similar to traditional investment dividends, in which they are a portion of the insurance company’s profit that the policyholder can invest.

    Infinite Banking with Whole Life Insurance

    So, how does this turn into infinite banking? Basically, if you have enough money in your whole life insurance policy, rather than applying for a loan at the bank, you can borrow against your policy. Your policy, ultimately, turns into a personal bank.

    Now, it won’t work to borrow against the policy when you first get it. It takes a few years to grow, as the first bit of payments covers the cost of the insurance and any additional fees. Once you have some cash value to your policy, then you can borrow against it (take out a loan on your policy).

    Why You Should Consider Infinite Banking

    Although infinite banking isn’t for everyone, there are some upsides to it that make it appealing. To start, since you’re borrowing from your policy and not applying for a loan at the bank, you can access the money for basically anything. You don’t have to meet certain criteria (besides having cash value to your policy) and risk getting declined.

    Whole life insurance has a growth aspect to it. Your policy gains interest each year you have it. So, the longer you have your policy, the more it will grow in wealth. Not only that, but the growth of the policy is also considered as equity.

    In the end, the main perk of infinite banking is that you have total control over virtually everything. Any reason you have and the decisions you make for borrowing against your policy is yours alone. Whether you’re taking the money for yourself or providing a loan to a friend, it doesn’t matter.

    Consider infinite banking as a strategy to grow your wealth.

    Add A Comment
    Leave A Reply Cancel Reply

    You must be logged in to post a comment.

    nps
    • Website

    Related Content

    Danish presidency decorations - Photo © European Union 2025

    New Danish EU presidency aims to deliver on security and competitiveness

    Euro - ECB-Photo by Mika Baumeister on Unsplash

    Eurozone investor sentiment remains upbeat – Euro currency news daily

    Van driver - Photo by Kampus Production on Pexels

    Risk Management Strategies for Your Delivery Business

    Accessibility - Photo by RDNE Stock project on Pexels

    EU accessibility act into force for key digital products

    Christophe Hansen - Photo © European Union 2025

    EU agrees new trade deal with Ukraine

    Space satellites - Photo by Kevin Stadnyk on Unsplash

    EU cuts red tape in space

    LATEST EU NEWS
    Danish presidency decorations - Photo © European Union 2025

    New Danish EU presidency aims to deliver on security and competitiveness

    1 July 2025
    Euro - ECB-Photo by Mika Baumeister on Unsplash

    Eurozone investor sentiment remains upbeat – Euro currency news daily

    1 July 2025
    Accessibility - Photo by RDNE Stock project on Pexels

    EU accessibility act into force for key digital products

    30 June 2025
    Christophe Hansen - Photo © European Union 2025

    EU agrees new trade deal with Ukraine

    30 June 2025
    Space satellites - Photo by Kevin Stadnyk on Unsplash

    EU cuts red tape in space

    30 June 2025

    Subscribe to EUbusiness Week

    Get the latest EU news

    CONTACT INFO

    • EUbusiness Ltd 117 High Street, Chesham Buckinghamshire, HP5 1DE United Kingdom
    • +44(0)20 8058 8232
    • service@eubusiness.com

    INFORMATION

    • About Us
    • Advertising
    • Contact Info

    Services

    • Privacy Policy
    • Terms
    • EU News

    SOCIAL MEDIA

    Facebook
    eubusiness.com © EUbusiness Ltd 2025

    Design and developed by : 

    Type above and press Enter to search. Press Esc to cancel.

    Sign In or Register

    Welcome Back!

    Login to your account below.

    Lost password?