Blog 80 – The Design Of Infinite Banking Policies


The design of high cash value, dividend paying whole life insurance policies, or Infinite Banking (IBC) policies, has two phases. The first phase consists of policy blending, heavy use of paid-up additions, and the typical 10/90 or 20/80 split between the premium going to the base whole life policy and the premium going to the paid-up additions rider. This first phase is quite consistent from case to case and the only variability might be in the premium split due to the total amount of premium (annually or monthly) to be paid, and design restrictions from the insurance company we are using.

The second phase has more to do with the method of funding the policy and the client’s goals for the use of the cash value in the policy. Typical questions we get from our prospects are: “I can contribute $30,000 annually to an IBC policy, but what is the best number of years to make that contribution?”, or “I have $600,000 in cash right now, and would like to know the best way to contribute this amount to my policy”. We don’t have specific answers for these types of questions, and in these situations are where we must ask the prospect what he/she intends to accomplish with this IBC policy.

Base & PuasThe prospect doesn’t need to have a precise amount of money or an exact date to use the cash value; in fact, if the answer is to use the cash value as a supplement to his/her retirement or help children or grandchildren with college expenses, these answers are good enough for us to properly design an IBC policy.

Even after a prospect becomes a client by purchasing an IBC policy, we get a lot of questions about how long the policy should be funded, or if it is better to withdraw money or take a policy loan. To properly advise our clients, we need to talk with them to determine more precisely their financial goals.

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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