What is Infinite banking or private family banking?

"Infinite banking" is a financial strategy that has different names such as "Private family banking", "Bank on yourself" or "Become your own banker." However, all the same. It is not a traditional banking service, but rather a concept that involves using a specially designed whole life insurance policy as a financial tool for personal banking and wealth accumulation. Here's a breakdown of how it works, and the kind of whole life insurance policy typically used:

Whole Life Insurance Policy: 

Infinite banking relies on the use of a specific type of whole life insurance policy, often referred to as "participating whole life" or "cash value life insurance." This type of policy is distinct from term life insurance because it provides both a death benefit and a cash value component. 

Cash Value Accumulation: 

A significant portion of the premiums you pay into this policy is allocated to the cash value component rather than just the death benefit. Over time, the cash value grows, often on a tax-deferred basis.

Borrowing from the Policy: 

One of the key features of infinite banking is the ability to borrow money from the cash value of the insurance policy. This is often done through policy loans. These loans are typically not subject to income tax and can be used for various financial needs.

Repayment of Policy Loans: 

When you borrow money from the policy, it's important to repay the loan with interest. The interest paid on these loans is paid back into your policy, helping your cash value continue to grow. Keep in mind that the interest paid is to your discretion. 

Infinite Banking Cycle: 

The goal is to create a cycle where you continuously borrow from the policy, repay it with interest, and use these funds for various financial needs (such as buying a car, funding a business, paying for your child's college tuition or even as a source of retirement income). The idea is that by doing this, you can build wealth and create a source of financing for various expenses usually financed through conventional lending that allows you to maintain control over your financial assets. The idea behind infinite banking is that it allows you to become your own source of financing, rather than relying on traditional banks or lenders. However, it's important to note that infinite banking is not a one-size-fits-all solution, and it has its proponents and critics. It's a financial strategy that requires a deep understanding of insurance products, and it may not be suitable for everyone.

When considering a whole life insurance policy for infinite banking:

It's essential to work with a knowledgeable Insurance professional who understands this concept and can help you select the right policy to meet your financial goals. The specific type of policy and insurance company can vary, so it's important to research and compare options to find the one that best aligns with your needs and objectives. At Kattallage Insurance, they recognize life's journey is a blend of expected and unexpected moments, that's why they developed a Whole Life Quoting System that is meticulously designed to offer you multiple options for Whole life insurance companies and policies to compare and choose from. This adaptable approach ensures your coverage aligns with your evolving needs and budget. Keep in mind that the performance of the cash value in these policies can be influenced by various factors, including policy expenses and dividends, so it's crucial to have a comprehensive understanding of the policy's terms and conditions before implementing an infinite banking strategy.

Are You Interested in Infinite Banking? 

As you can see, infinite banking poses a number of key advantages to those that are interested in leveraging this system. From gaining interest-free liquidity backed by your own money—to passing on your wealth tax-free, you have to admit that the perks are substantial and infinite bank funding is easy to do with our strategy. If you are interested in learning more about this system of wealth building management, then you are in the right place. We have a consulting service here at Kattallage. Reach out to us directly to learn more or if you're ready to shop Whole life policies from reputable insurers from around the nation, use our easy quote system. You can click here to get started. Get A Quote!