Does Infinite Banking Work? 5 Myths Debunked

Infinite banking is about utilizing high cash value whole life insurance to become your own banker and manage your financial outcomes with a liquid, safe investment strategy. At first, many who offer these policies make it seem too good to be true.

On the other hand, those with an agenda to sell other financial products create false or misleading information to make whole life insurance or Infinite Banking seem impossibly bad. Unfortunately, this leads to many myths and misinformation about Infinite Banking as a retirement planning and savings method.

Let’s look at these myths surrounding the Infinite Banking Concept and find some of the truth behind this concept and the reality of this investment strategy.

Myth #1 – Infinite Banking Is A Scam

Many see it as a scam because they think it sounds too good to be true. The truth is that Infinite Banking and whole life insurance offer a safe investment alternative that grows slowly but competitively.

Whole life insurance, when structured properly, offers competitive growth and safety that you cannot find anywhere else.

Myth #2 – Whole Life Insurance is an Awful Investment

Myth #3 – Infinite Banking has High Fees

Because of the way whole life insurance is structured, the fees are different. This does not make them better or worse, just different.

The truth is, cash value inside a life insurance policy is already included in the death benefit. This is because cash value, by definition, is the portion of the death benefit that is able to be liquidated at any given time.

Myth #4 – I Don’t Get My Cash Value When I Die

If you are not planning on utilizing Infinite Banking for the long term, it will not work. It does take time, but too long is relative to the individual, not the investment.

Myth #5 – Infinite Banking Takes Too Long

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