Blog 55 – Infinite Ways To Use Infinite Banking Policies

When we meet with clients and potential clients via phone, Zoom meetings, or in person, we always ask how they plan to use their IBC policies and most times they ask for recommendations based on their specific situation.

We always recommend that the cash value be divided into two funds: the emergency fund and the opportunity fund.

The emergency fund should correspond to six to twelve months of your income, depending if you are paid a salary or commissions. You don’t take loans for anything but income emergencies with that portion of your cash values.

The opportunity fund as the name implies is the one that you use to take advantage of business opportunities. Typical uses for the opportunity fund follows.

  • Business owners take policy loans against their opportunity fund to purchase raw material to manufacture the products that they ultimate offer to the public. Once they sell the products and profits are generated, they repay their policy loans to the insurance company and the cycle repeats itself.
  • Project engineers take policy loans to purchase equipment and pay subcontractors. Once the project is completed and they get paid, they repay their policy loans.
  • Individuals in the medical field (physicians and dentists) take policy loans to purchase sophisticated medical and dental equipment that they are presently leasing and sometimes to buy other medical and dental practices. They repay their policy loans from the resulting increasing revenues.
  • Entrepreneurs take policy loans to invest in rental real estate property or other types of businesses that they know and enjoy. As additional passive income is received, they repay their policy loans.
  • Other business owners take policy loans to pay their taxes. Then they start repaying the loan with the money they typically save to pay next year taxes.
  • Parents may take policy loans to pay for children’s college education. Since most individuals would like to use the cash values of their IBC policies to supplement their retirement income, it is only fair that the loan money used for college education be repaid by the children under conditions that are more attractive than what they would have to pay an outside source for their student loan. After all, children may be the ultimate beneficiaries of their parent’s IBC policies.
  • Notice that these examples of typical uses for the opportunity fund can be combined since every time a loan is repaid a new opportunity can be taken care off. An IBC policy is an “AND” asset, not an “OR” asset.

As Nelson Nash mentioned many times, “the Infinite Banking Concept is an exercise in imagination, reason, logic, and prophecy”.

If you would like to learn how you can grow a substantial amount of cash that you have access to at any time without penalties, is unrelated to the stock market, and will generate income that is not included in your tax return, visit our website at  or feel free to email us your questions at or call us toll-free at 1-844-443-8422.

Isis B. Palicio, LUTCF, MBA
Pedro A. Palicio, MBA, Ph.D.
Infinite Banking Concepts® Authorized Practitioners

We are experts in designing high cash value dividend-paying whole life policies.

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