Infinite Banking Concept Explained – High Cash Value Life Insurance – Becoming Your Own Banker


Let’s learn more about the Infinite Banking Concept and how it works. What are the pros and cons? Is it a scam? We want to give you a simplified look at Infinite Banking based on the book by Nelson Nash, “Becoming Your Own Banker.”

Infinite Banking utilizes high cash value life insurance, whole life insurance, to put your money in a safe and secure financial environment where you can grow your wealth. Because of the advantages that cash value whole life insurance offers, Infinite Banking becomes a concept that really stands on its own.

“Infinite Banking

Hi glad you could join me on this video. My name is Dan Thompson.

Let me take a minute here and get to the core of what I think Infinite banking accomplishes.

It’s really more than just using high cash value life insurance to create and protect your wealth.

There are 5 key principals to infinite banking.

The first principle here is safety.

Look, markets are volatile. Extremely volatile, and with that volatility comes unpredictability. The market has a way of lulling everyone to sleep.

We all think the market will go up forever, then bam, it changes almost instantly and years of growth can be wiped out in sometimes days, even hours.

Did you know that in 2008 2.1 trillion dollars was wiped out in about the time it takes to brush your teeth? That’s how fast it can change.

I was a stock trader for 15 years and there is a saying that “the market has a way of proving the most number of people – Wrong!”

It’s true isn’t it? How many people have no idea what to do, ride the roller coaster up and down with the market and then cross their fingers and hope they made the right choice.

Pretty scary isn’t it? Seems most people put the greatest amount of money at risk hoping it will be okay…but what if it isn’t?

Do you know how many people had to put retirement on an indefinite hold when 2008 wiped out half of their retirement savings?

It doesn’t have to be that way.

What we gain by using this concept of high cash value life insurance is safety. Strong insurance companies have been through every market cycle and have protected your capital through good and bad times.

And I’m talking bad times to the extreme. We are talking about insurance companies that paid out dividends in the great depression and even in our latest market crash, recession, and interest rates basically going to 0%.

There are underlying guarantees as well.

Did you know cash value life insurance is deemed so safe that even banks put billions of dollars into cash value life insurance to protect their capital as well?
It’s called BOLI – Bank Owned Life Insurance.

For the bank those policies are put on their books as Tier 1 assets – the safest assets banks own.

Yes, they take your money that you deposit into your checking, savings and CD’s and they in turn around and use some of it to buy cash value life insurance.

If it’s good for the banks that want to protect and grow their capital, seems like it should be good for us too.

I don’t believe that taking risk is necessary for growing your wealth. Slow and steady wins the race, and life insurance offers us the most growth for the least risk out there.

Next – we have Tax-Benefits –

Life insurance offers us a place where, if handled properly, our money can be tax-free from both income while living and a death benefit when we die as well.

Put these two together and we have a way of avoiding taxes indefinitely.

A well-engineered life insurance policy offers a very sturdy financial future.

Its one of the last places where we can store cash with tax-advantages.

Our 3rd benefit is Access to Capital –

This can be a tremendous advantage for sure. Families and business owners alike have a need for capital at some point.


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I have been involved in financial planning for over 30 years. I started out as a high volume stock broker. After working with millions of dollars I decided there had to be another way for people to earn money in the market without all the risky ups and downs that leave you where you started, or worse. After reading a ton of books I came across a book on the Infinite Banking Concept and it completely changed my life and the way I view investments. Now I focus on building wealth in safe and predictable ways, like Infinite Banking, Cash Value Life Insurance, and Indexed Annuities to name a few.

I post videos regularly so if you have any questions of comments feel free to email them to…

dan at wisemoneytools dot com



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