Is the Infinite Banking Concept a Scam?

Infinite Banking is a Concept. In fact, it is one of the simplest things you can do, but it’s easy to get caught up in all the minutia and sales concepts that producers teach.

Infinite Banking is simply becoming your own banker and taking control of the banking function, which WILL be performed in your life. It’s built on the platform of dividend paying whole life insurance with a mutual company.

Many financial “gurus” claim that the IBC is a sales tactic that only benefits the agent and the insurance company. You paying a premium to the insurance company does benefit both the insurance company and agent, but it also benefits you.

The Infinite Banking Concept in action.

When we structure policies for clients to practice the Infinite Banking Concept, we keep insurance costs to a minimum (reducing our commissions), to achieve cash rich policies from day one.

In return, you receive a permanent whole life insurance contract that you control, is contractually guaranteed to increase in value every year with liquid access to capital to use as you please (which can be accessed tax free with proper structure and implementation), and a death benefit to protect your family for your entire life, not just a set term at purchase.

Products like Indexed Universal Life Insurance (IUL), Universal Life Insurance (UL), and Variable Universal Life Insurance (VUL) have given the permanent life insurance industry a bad name.

These policies may have a place for some people (when structured, implemented, and most importantly sold with education of benefits and downfalls of the product), but they should NEVER be used to practice the Infinite Banking Concept. Only dividend paying whole life insurance (DPWL) with a mutual insurance company should be used to practice the IBC.

The difference in DPWL.

Since IUL, UL, and VUL are permanent products like DPWL, they get lumped together and looked at as the same products.

The difference is that DPWL has been around for over 200 years. The companies we use have never failed to pay a death benefit, and have paid a dividend every year for more than 100 years. Some companies’ track records of paying a dividend is 150+ years running. (dividends are not guaranteed)

The UL products have only been around since the 1970’s. These policies have been known to fall apart, and without paying more premiums or reducing your face amount, the insured can lapse their policy.

The UL products lack the solid guarantees that DPWL offers which is why we only offer DPWL polices for practicing the IBC.

With the unique structure of an IBC policy, you will have the flexibility to commit to the minimum premium, but have the ability to pay more in based on your financial situation. Your policy payment period can be almost anything you choose, whether that’s paying for life, 20 years, 5 years, or less, whatever fits your unique situation.

No matter what you choose, you can rest easy knowing DPWL has more guarantees than any other insurance product on the market, and we use mutual companies who put the best interests of their policyholders first.

It is extremely important to choose life insurance agents who understand and practice the IBC themselves to help you set up your policy.

You can be sold “bad” policies from agents who do not have your best interests in mind. To prevent this, take these two steps:

1) Find an advisor you trust who practices the IBC

2) Use Dividend Paying Whole Life Insurance with a mutual company

Implement these two items, and you’ll soon find out the IBC is most certainly not a scam. Here at Cash Value Solutions we practice what we teach and our client’s best interest is our top priority. If you’re ready to take action toward achieving financial independence, Book Your IBC Discovery Call today.