Blog 99 – Key Thoughts From “Becoming Your Own Banker”

Pedro Palicio On The Infinite Banking

Do you realize that IBC is all about how to create your own banking system so you can control 100% of your financing needs?

Once you control 100% of your financing needs, you won’t be paying interest to outside banks, finance, and credit card companies, but to a financial instrument that you own and control – your IBC policy.

Do you understand that you “finance” everything you buy? You either pay interest to someone else or if you pay cash, you give up the interest you could have earned.

The interest you give up when you pay cash is also called “opportunity cost”.

Do you realize that your need for finance is much greater than your need for life insurance protection?

Whole life insurance policies have two main components: cash value and death benefit. Infinite Banking, or IBC, policies early on emphasize the cash value component but later, they generate more death benefit than a traditional whole life policy. Early in your life your need for finance is more prevalent than your need for insurance protection since statistically only 10% of the population dies before age 45 and 33% dies before age 65. You may always supplement your IBC death benefit with term insurance during the early years of your IBC policy to achieve your “human life value”.

What do you understand to be the capitalization period of an IBC policy?

Capitalization period or cumulative break-even year refers to the policy year when your cash value equals or exceeds the total premiums paid to the policy. It is the year that your IBC policy becomes profitable, and the profitability of your policy is contractually guaranteed to increase every year. Remember, any type of investment that you make – real estate, starting a professional practice, or getting a college degree – has a capitalization period of several years after which you are increasingly profitable. 

Do you understand that you should pay the policy loan interest every year, except if you are using policy loans to supplement your retirement income?

You should pay the policy loan interest every year because otherwise it is added to the policy loan principal and, if you are not careful, it may grow out of control. If you are using policy loans to supplement your retirement income, we don’t recommend that you pay the loan interest every year, but you should carefully monitor the growth of your loan.

Do you know that it is always better to finance anything that you buy through your Infinite Banking system than out of your pocket?

There is no way that you can “get a higher rate of return” by ignoring the banking process! There is a delay in time – the capitalization period – while getting “the banking system” established, but once this is done it is a “one-time only event”.

Do you have the patience, discipline, and long-range planning required to implement IBC?

If you lack any of these basic traits – patience, discipline, and long-range planning – you may have a harder time in successfully implementing the Infinite Banking Concept.

Do you understand the concept of “delayed gratification”? 

You should because Infinite Banking is not a get-rich-quick scheme. It requires understanding – and it requires discipline to implement the idea, but it can change your life dramatically – even beyond your fondest dreams!

Do you understand that if you have not read “Becoming Your Own Banker” you may have problems successfully implementing the Infinite Banking Concept into your personal and business life and you could make unnecessary financial mistakes that would cost you time and money? 

“Becoming Your Own Banker” is a short book, but it is the type of book that excites your imagination and your creativity. Every time we read it, we come with new ways to solve specific financial problems. The opportunities are truly infinite in the Infinite Banking Concept!

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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