Blog 86 – Implement Infinite Banking Now

IBC Vault

The Infinite Banking Concept is an excellent cash flow management strategy, and this strategy is implemented through the design of a high cash value whole life insurance policy from a top-ranked mutual life insurance company. Why is it an excellent cash flow management strategy? Well, it provides you with a safe and secure place to store your money, while keeping maximum liquidity, access, and control.

To successfully implement Infinite Banking, it requires patience, discipline, and long-range planning. An Infinite Banking policy needs a capitalization period of four to seven years after which the policy becomes more efficient every year, where efficiency is measured by the policy’s ability to generate higher cash values over time.

All Infinite Banking policies have two required components: the base whole life policy and a Paid-Up Additions rider, and an optional component: a term-like rider. Lets understand how these three components interact. The base whole life policy is responsible for the death benefit and dividends over time. The Paid-Up Additions rider provides the most efficient way to generate cash values since the total contribution to this rider less a service fee goes towards cash values. Given the fact that we wish to maximize the cash value in the policy, it stands to reason that we want to make the contribution to the Paid-Up Additions rider as high as possible. But if we allow the Paid-Up Additions rider to be very high, we run the possibility of the policy violating IRS regulations and the policy becoming a Modified Endowment Contract (MEC) which is not good for these types of policies. To avoid this situation, we need to increase the death benefit of the policy, and the most inexpensive way of accomplishing this is not by increasing the death benefit of the base whole life policy, but through the term-like rider. As you probably know, given the same death benefit, term insurance is much more economical than whole life insurance.

Compouding Dollars

The cash value in your Infinite Banking policy, by design, increases every year and the size of the increases is higher every year; this type of growth is called exponential growth. You should consider the cash value in your policy as an emergency fund as well as an opportunity fund. As your cash values grow, so will be the investment opportunities coming your way.

You should also remember that when you take a policy loan, the loan money doesn’t come from the cash values in your policy, but from the general account of the insurance company with your cash values just collateralizing your loan and continuing to grow with interest and dividends. As you repay your policy

loan, the cash values collateralizing your loan are reduced by exactly the same amount of your loan repayment and they are available for your next loan. 

Let’s ask you a question: where do you store your disposable income now? Why not store it in an Infinite Banking policy? You will enjoy all the advantages described above. If you wish to implement an Infinite Banking policy, we will answer all your questions and take you by the hand during the whole process. You should seriously consider to start creating you own wealth right now.

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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