I heard about infinite banking before and even though it was explained to me, I kind of wondered where their dependence lay. It seems that infinite Banking rely on participating whole life insurance policies which build up equity and pay dividends.

This means that policy holders pay premiums which vary based on the amount of the death benefit chosen along with other factors like age and health of the policy holder into a whole life insurance policy for a period of around 5-7 years and let it increase in value over time.

Ever heard of the words capitalization phase? Well, this is exactly it!

Through paid up additions rider, policy holders benefit from having their dividends reinvested into their policy thereby increasing the value of their policy and subsequent death benefit.

An advantage that I like about this is that policy holders are able to borrow up to 100 percent of the cash value of their whole life policy at any time with no tax penalties.

People who participate in infinite banking are able to borrow money from and repay themselves when financing major purchases rather than relying on and paying interest to banks and other outside lenders.