Question 1

What is Infinite Banking?

Accepted Answer

Infinite Banking is a strategy that uses a properly structured, dividend-paying whole life insurance policy as a personal source of financing. Policy owners may borrow against the policy's cash value, which grows on a tax-advantaged basis. Policy loans accrue interest and, if not repaid, reduce the cash value and death benefit. Dividends are not guaranteed.

Question 2

How does whole life insurance build wealth?

Accepted Answer

Whole life insurance builds cash value through guaranteed cash value growth and potential dividends, which accumulate tax-deferred. Guarantees are subject to the claims-paying ability of the issuing insurance company, and dividends are not guaranteed. Policy loans may be received income-tax-free if the policy is properly structured, is not a modified endowment contract (MEC), and remains in force.

Question 3

What is The U Account?

Accepted Answer

The U Account is our approach to designing a dividend-paying whole life insurance policy that emphasizes early cash value accumulation, which the owner can access through policy loans to practice Infinite Banking. Results depend on policy design, carrier dividend performance, and how the policy is funded and used.

Question 4

Is Infinite Banking a good strategy?

Accepted Answer

Infinite Banking may suit people seeking tax-advantaged growth, contractual guarantees (subject to the insurer's claims-paying ability), and access to liquidity through policy loans. It is a long-term strategy that requires consistent premium funding and is not right for everyone. Consult a licensed professional to see if it fits your situation.