Infinite Banking

The Infinite Banking Concept (IBC) was developed by Nelson Nash. He is also the founder of the Nelson Nash Institute and author of Becoming Your Own Banker—the first edition published over 20 years ago! The mission of the Nelson Nash Institute is “to educate and inspire individuals to take control of their financial lives by reclaiming the bank functions from others.” Similar to the Bank On Yourself® concept, the Infinite Banking Concept® uses participating (also known as dividend-paying) whole life insurance as the ultimate savings vehicle.

When structured in the right way, using one of our Infinite banking concept, the cash value of a participating whole life insurance policy is comparable to the equity you build up in a home or real estate property when you pay a mortgage.

A participating whole life policy is permanent insurance that also creates equity, with what is referred to as a cash value. This cash value is also considered an asset you can use as collateral—one of the reasons we often compare it to homeownership and along the same lines as the HELOC scenario, when you take a loan out on your whole life insurance policy, the cash value stays the same—as if you haven’t even touched it because you are leveraging the equity in the policy’s cash value as collateral.

One key difference with infinite banking structured participating whole life insurance policy is, you can access your money without going through financials—which is not usually the case with a HELOC. You simply request the policy loan and within days, you receive the funds.

Another key difference with this type of policy is the time-proven potential to earn dividends. Impressively, for over 160 years, these types of policies have been paying out dividends in North America. The policy is structured to use these dividends to purchase more insurance known as paid-up additions, which accelerate and fast-tracks the growth of both the cash value and death benefit in your policy.

Here are just a few of the ways a Infinite Banking plan is a unique, all-in-one financial solution that works to protect and preserve your estate and legacy in the future while helping you plan and self-finance many of life’s big purchases today…

Saving for Education –  Use a Bank On Whole Life plan to guide education savings for your child or grandchild instead of an RESP. You can take a policy out on your child within the first year of birth at lower, affordable rates to start saving for their post-secondary education in advance with guaranteed growth, so you will know what is available when the time comes to use it.

Lifestyle Purchases – The equity in your Bank On Whole Life plan policy gives you flexibility and accessibility to a liquid cash reserve you can use while living to self-finance what you need when you need itOur clients have used their Bank On Whole Life plans to pay for vehicles, new business equipment, vacations, home renovations and virtually just about anything else you can think of!

Securing Retirement – An Infinite banking structured plan accounts for an additional stream of retirement income when you stop working. Better yet, you’ll have peace of mind knowing exactly the minimum guaranteed value of your account on the day you except to tap into it. An RRSP is tax-deferred and subject to market fluctuations and volatility, and can’t provide you with the same guaranteed value of funds when you retire.

Legacy Planning –  A Bank On Whole Life plan sets you up with the ability to earn annual dividends on top of guaranteed returns. These dividends can be used to purchase additional insurance which helps to accelerate the growth of both the cash value and death benefit of your policy—a great mechanism for building wealth and leaving a legacy for future generations.

Charitable Giving – If you make regular contributions to a charity, a Bank On Whole Life plan can strategically amplify the amount of your charitable gift and reduce your estate’s income tax without impacting your family’s inheritance.


The dividend paying whole life policy enables you to earn uninterrupted compound interest for the rest of your life and utilize your capital for other things. You can earn compound interest and buy your vehicles, and buy real estate, and trade stocks, and invest in private placements, and start a business, and engage in any profitable activity that you can dream of!

Your specially designed whole life policy can function as an asset and as a source of capital. Instead of being tied to bank loans (which you have to qualify for), you were your own source of financing. If credit dries up for everyone else, you can work all of the elements of the financing to your advantage. You were playing your own game.  Delay Repaying, I personally intend to use my Master Account in this way

Where This Strategy is Known

The wealthy and well-connected have known about these specially designed contracts and special life insurance companies for decades.  Many prominent individuals and corporations have taken advantage of these strategies.

    • Walt Disney used money from his contract to finance the opening of Disney World.
    • J. C. Penney tapped into the massive reserves he had accumulated in his contract in order to keep his company afloat through the Great Depression.
    • When Ray Kroc bought McDonald’s, he used his contract to pay his employees and create the successful Ronald McDonald marketing campaign.
    • You might be surprised to know that every major bank uses this strategy to one degree or another. Bank of America holds roughly $19 billion of its assets in these types of contracts.

Where This Strategy is Unknown

Despite the fact that it’s a common practice and recognized staple of banks, corporations and the wealthy, this strategy is relatively unheard of by people on the street. The next time you visit with someone who is connected with the insurance industry, or a financial investment advisor, ask them if they can explain how a specially-designed, dividend-paying contract with a mutual-owned life insurance company works. Don’t ask them if they’ve ever heard about it or what they think about it. Ask them to explain how it works. 

Why? One of the efficiencies inherent in these contracts relates to commissions. Remember, both parties, the contract-holder and the insurance company, are laser-focused on making this work in their favor. This contract is a golden goose for you and for the company, not for its agents. It is in the interest of the insurance company to keep their costs low. And, one of the ways that is done is by paying low commissions to their agents. The contract works in such a way as to ensure that the greater amount of living benefits provided, the lower the commission will be.


Guilliams, Caleb. The AND Asset: The secret way to save and use your money at the same time

Explosive Power Infinite Banking System

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