Infinite Banking is a financial strategy that uses a specially designed participating whole life insurance policy to build wealth and create your own personal financing system. You can leverage the policy’s cash value while your money continues to grow tax-deferred inside the policy. This allows you to finance major expenses or investments without relying on traditional banks, giving you more control, flexibility, and long-term financial stability.

If you’re like most successful entrepreneurs and professionals, you’ve worked tirelessly to build your business and income.

But despite your success, you feel weighed down by high taxes which only seem to be increasing, red tape, complex financial structures, and the constant frustration of relying on traditional banks for your financing needs.

What if there was a way to become your own banker, bypass the traditional system, and build wealth with a tax-efficient, secure strategy that’s custom-made for high-net-worth individuals like you?

That’s exactly what the Infinite Banking Concept (IBC) offers— tax free vested growth - meaning the value of your policy never goes down regardless of what is happening in politics, the stock market, or the economy.

Get and maintain your financial independence, have complete control of your own money, and stop worrying about the future.

At Design Your Future Financial Services, we specialize in helping leaders like you to use this powerful strategy to reduce taxes, build generational wealth, and finally take control of their financial destiny.

At the heart of Infinite Banking is a specially designed participating whole life insurance policy. This policy builds cash value over time, which serves as a powerful financial tool you can leverage throughout your life. Once your policy has built sufficient cash value, you can borrow against it by using the policy as collateral. Rather than borrowing from traditional banks or financial institutions, you access your money quickly and without lengthy approval processes.

This strategy offers a unique advantage: while you’re using the loan for personal or business purposes, the cash value inside your policy continues to grow tax-efficiently, as if you hadn’t touched it. You’re not interrupting the compound growth of your wealth, and since you set the repayment terms for these loans, you maintain control over your finances.

Additionally, because these policies are participating, they pay dividends. These dividends can be reinvested into the policy to boost the cash value, used to pay premiums, or even withdrawn in cash. This continuous accumulation of wealth inside your policy, combined with the ability to easily access funds for major expenses or investments, gives you the flexibility and control of your own “personal bank” without the constraints of traditional financial systems.

In essence, Infinite Banking allows you to take complete control of your money, creating a reliable and tax-efficient system for growing, accessing, and protecting your wealth for the long term.

Starting your Infinite Banking journey requires working with AN AUTHORIZED IBC PRACTITIONER.   An Authorized IBC Parctionioner is someone who has devoted themselves to the training and understands the intricacies of whole life insurance so they can tailor a policy to fit your specific financial goals. This isn’t about buying just any life insurance—it’s about designing a policy that maximizes cash value growth, offers consistent dividends, and provides the flexibility you need to build your own personal banking system.

The first step is to select a participating whole life insurance policy. Your Authorized IBC Practitioner will help you choose the right solution based on factors like premium affordability, dividend potential, and the policy’s ability to build cash value quickly. Once the policy is set up, you’ll begin funding it with regular premium payments. As the cash value accumulates, you can start leveraging it to finance major purchases, investments, or even supplement your retirement income.

For example, take Ashley, a 35-year-old entrepreneur who starts her Infinite Banking policy with an annual premium of $10,000. Over time, her policy builds substantial cash value. When she’s ready to renovate her home, Ashley borrows $50,000 from her policy’s cash value. Instead of relying on a traditional bank loan, she taps into her own financial system—keeping control of her assets and paying herself back on her terms.

What makes Infinite Banking powerful is the ability to use your policy’s cash value without interrupting its growth. Even while Sarah is using her funds for renovations, the cash value inside her policy continues to grow tax-deferred, generating dividends and compounding wealth.

Working with an Authorized IBC Practitioner ensures that your policy is set up to meet your unique needs, providing you with the tools to control your wealth, reduce your tax burden, and create lasting financial independence.

In short: No.

There are two main types of life insurance: term and permanent. Under both types of insurance, the death benefit is tax free.

Depending on who gets the money, CRA and other creditors can use the payout to satisfy debts.

Unlike the death benefit, taxation of the cash surrender value of permanent life insurance (Whole Life and Universal Life) can occur if the policy holder makes a withdrawal or takes a policy loan above the ACB (Adjusted Cost Basis).

To fully understand how the Infinite Banking Concept works, it’s essential to first grasp the fundamentals of whole life insurance—the financial vehicle that powers the entire strategy—and how it differs from term life insurance.

Whole life insurance is a form of permanent life insurance. As long as you continue paying the premiums, the policy will remain in force for your entire lifetime—unlike term life insurance, which expires after a set period. One of the key benefits of whole life insurance is that it includes a savings component, known as the cash value, which grows over time.

A portion of every premium you pay goes into building this cash value, which acts like a tax-deferred savings account. As the cash value accumulates, you can either:

• Borrow against it (without interrupting the growth of the policy),

• Use it to enhance the policy’s benefits,

• Or withdraw it if you decide to surrender the policy.

Since whole life insurance offers both permanent coverage and the ability to build wealth through the cash value, it tends to have higher premiums than term life insurance. However, when you consider that term life insurance premiums increase dramatically as you age—and term insurance doesn’t come with the ability to accumulate savings—the value of whole life insurance becomes clear.

Participating vs. Non-Participating Whole Life Insurance

Within the realm of whole life insurance, there are two key variations: participating and non-participating policies.

1. Non-Participating Whole Life Insurance:
   A non-participating policy provides guaranteed benefits but no dividends. It offers the essential features of permanent insurance—cash value accumulation and a death benefit—but the growth of the policy is primarily driven by your premium payments.

2. Participating Whole Life Insurance:
   A participating policy, on the other hand, not only offers guaranteed death benefits and cash value growth but also pays dividends to the policyholder. These dividends are a key feature of participating whole life insurance and can be used to:

   • Reinvest in the policy to further boost your cash value and death benefit,

   • Reduce premium payments, making it more affordable to maintain the policy, or

   • Withdraw as cash.

Dividends are generated based on the performance of the insurance company’s participating fund, which pools the premiums from all policyholders and invests them. Although dividends are not guaranteed, many reputable insurance companies in Canada have a long history of paying dividends consistently over decades.

Whole life insurance is the cornerstone of the Infinite Banking Concept because it provides the perfect combination of long-term financial security and wealth-building potential. Unlike other types of insurance or investment vehicles, whole life insurance has unique features that make it the ideal tool for becoming your own banker.

Here’s why:

1. Permanent Protection with Cash Accumulation
   Whole life insurance offers permanent coverage—meaning as long as you pay the premiums, the policy is guaranteed to stay in force for your entire life. This ensures that your beneficiaries will receive the death benefit no matter when you pass away. But what sets whole life insurance apart for Infinite Banking is its cash value component. A portion of your premium is allocated to a cash savings account within the policy, which grows over time on a tax-deferred basis. As your cash value accumulates, it becomes a financial resource that you can leverage for loans, investments, or even personal expenses.

2. The Power of Borrowing Against Cash Value
   Once the cash value of your policy reaches a meaningful level, you can borrow against it. This is where the Infinite Banking Concept shines—by accessing funds through policy loans from the insurance company’s participating fund, you avoid dealing with traditional banks, credit checks, or long loan approval processes. You set the terms for repayment, and the loan does not interrupt the growth of your cash value. Even if you borrow from the policy, your entire cash value continues to earn interest and dividends as if you hadn’t touched it. This allows you to borrow money and still enjoy uninterrupted wealth accumulation—a key advantage over other financial products.

3. Dividends and Paid-Up Additions (PUA)
   For Infinite Banking to be truly effective, the ideal policy is a participating whole life insurance policy, which pays out dividends to the policyholder. Dividends are critical because they accelerate the growth of your cash value. While dividends are not guaranteed, many well-established insurance companies have a long history of consistent payouts. To maximize the benefits of Infinite Banking, the Paid-Up Additions (PUA) option is highly recommended. With this option, the dividends you receive are used to purchase additional coverage, which in turn increases the policy’s cash value and death benefit. These additional “paid-up” portions also earn dividends, creating a compounding effect that supercharges the growth of your policy over time.

4. Flexibility and Control Over Your Finances
   One of the most significant advantages of using whole life insurance for Infinite Banking is the control it gives you over your financial decisions. You can borrow against your policy’s cash value for any purpose—whether it’s to fund a business, make a real estate investment, or cover personal expenses—without needing approval from a bank. Plus, you set the repayment terms, giving you the flexibility to repay on your own schedule. This level of control is a game-changer for entrepreneurs and high-income individuals who want to stop relying on traditional financial institutions and start financing their own ventures.

5. Multi-Generational Wealth and Legacy
   Not only does whole life insurance provide benefits while you’re alive, but it also allows you to create multi-generational wealth. The policy’s death benefit will pass to your beneficiaries tax-free, providing your family with long-term financial security. This makes whole life insurance an essential tool for building a lasting legacy and ensuring that your wealth is transferred efficiently across generations.

Key Takeaways:

• Whole life insurance offers permanent coverage and a cash value component that grows over time, giving you both financial protection and a powerful savings tool.

• By borrowing against the cash value, you can access funds without disrupting the policy’s growth, allowing your money to continue working for you even when you use it.

• The Paid-Up Additions (PUA) option further boosts the policy’s cash value and death benefit by using dividends to purchase additional coverage, creating a compounding cycle of growth.

• Whole life insurance gives you flexibility and control over your financial future, with the ability to use the policy’s cash value for investments, business funding, or personal expenses—on your own terms.

• The policy’s death benefit creates an opportunity for multi-generational wealth transfer, providing your heirs with financial security for years to come.

In conclusion, whole life insurance is uniquely positioned for Infinite Banking because it combines permanent protection, cash value growth, and dividend-paying potential—giving you the financial control and security you need to build wealth, both for yourself and for future generations.

"Buy term and invest the rest" is a catchy slogan. It should be clear, in the financial world, there is never a one-size-fits-all.

Both serve different purposes.

Term is generally used for income replacement and paying off debts.

Whole Life gives you the opportunity to earn money you can use while living and pass on an inheritance when you die.

The design of the properly structured dividend paying Whole Life Policy is very important and there are generally 2 ways to structure a policy:

• For maximum commission and low opportunity or

• Minimum commission and maximum opportunity.

We have been trained to help maximize opportunity.

One huge advantage of Life Insurance loans is that you determine your payback schedule and payment amount.

With most insurance companies, you can pay a policy loan back with a monthly EFT bank draft or call in and give payment over the phone.

And the best part: You determine either how much you want to pay per month or calculate the payment amount based on the interest rate and the number of years to pay back the loan.

The most important part to grasp is that all the loan repayment options are flexible and are determined by you.

Also, later in life many people use their policy loan provision to supplement their retirement income.

As a result, they do not pay back their loan. Rather, the annual cash value growth and dividend payment of their whole life insurance is used as tax-free retirement income.

The main advantage of the Infinite Banking process is that it creates a peaceful, stress-free financial life.

Other Advantages of Infinite Banking:

1. Be Your Own Bank
   One of the most attractive aspects of Infinite Banking is the ability to act as your own bank. You can access loans using the cash value of your participating whole life insurance policy while the policy remains unaffected. This gives you the ability have uninterrupted compound growth, greater control over your finances, and access to your money whenever you want it.

2. Quick Access to Funds
   Traditional loans often involve lengthy approval processes, credit checks, and strict terms. With Infinite Banking, you skip the bureaucracy. When you need funds, you simply borrow against your policy’s cash value, giving you fast and flexible access to capital.

3. Tax-Deferred Growth and Compound Interest
   Your policy’s cash value grows tax-deferred, meaning you won’t pay taxes on it while it accumulates. Even more, the compounding effect works in your favor—your policy’s cash value continues to grow even when you take a loan, allowing you to enjoy uninterrupted wealth growth.

4. Unstructured Repayment Terms
   Infinite Banking gives you the flexibility to choose unstructured loan repayment terms. Unlike traditional loans, where you’re locked into rigid schedules, you have the freedom to repay on your own terms.

5. Multi-Generational Wealth Transfer
   Participating whole life policies allow you to create multi-generational wealth. Not only does the policy provide benefits during your lifetime, but the death benefit can be passed down to future generations tax-efficiently, creating a lasting legacy.

6. Protection from Market Volatility
   Unlike other investment vehicles that fluctuate with the stock market, whole life insurance policies are insulated from market volatility. Your cash value grows steadily and predictably, giving you peace of mind even in uncertain economic times.

7. Continued Growth, Even When Borrowing
   One of the most remarkable features of Infinite Banking is that even when you borrow against your policy’s cash value, the entire value continues to grow as if no loan was taken. This allows you to finance personal or business endeavors without halting your long-term wealth accumulation.

Infinite Banking has disadvantages too. A person must either be insurable OR have a beneficial interest in someone else who is.

Other disadvantages include:

1. Higher Premium Costs
   Whole life insurance policies—especially those designed for Infinite Banking—can come with higher premiums compared to term insurance or other financial products. These policies require a long-term commitment to funding, which may be challenging for individuals without the income to sustain regular payments.

2. Growth is Slow at First
   Infinite Banking is often  long-term strategy. It takes 2-3 years for the compounding effect to allow the cash value to build up.

3. Health Conditions May Impact Policy Rates
   Securing favorable terms for a whole life insurance policy depends on your health. Individuals with pre-existing health conditions may face higher premiums or may not qualify for a policy, which can limit the effectiveness of Infinite Banking for them.

4. Long-Term Commitment
   Infinite Banking requires a solid understanding of the strategy’s mechanics, and because it’s a long-term financial tool, the advisor who sets it up for you may not be around in 20 or 30 years. You’ll need to ensure you have a trusted financial team in place to maintain the strategy over time.

5. Interest Rates on Policy Loans
   Policy loans typically come with interest rates ranging from 6% to 10%, which can be higher than the dividend earnings on your policy (currently range 4% to 7%). While the interest you pay goes back into your policy, this spread means loans affect future earnings potential, so careful consideration is needed before borrowing.

6. Tax Implications on Large Loans
   In Canada, if a policy loan exceeds the adjusted cost basis of the life insurance policy, the excess becomes fully taxable. This is why it’s essential to have a solid understanding of tax rules and working with an infinite banking expert when taking out significant policy loans to avoid unexpected tax liabilities.

In addition, if you're not working with an Authorized Infinite Banking Practitioner, you may not be getting the best advice or coaching. To implement this properly, you need a good coach who has your best interest in mind.

Conclusion:

Infinite Banking offers powerful advantages, particularly for high-income earners looking to take control of their wealth, bypass traditional financial institutions, and create a long-term legacy for their family.

However, it requires discipline, a long-term commitment, and a solid understanding of how whole life insurance and policy loans function. While the strategy is not for everyone, for those who understand its potential and can fund it properly, Infinite Banking provides unparalleled financial control and flexibility that few other strategies can match.

If you’re a financially sound individual with long-term wealth-building goals, the Infinite Banking Concept can be an indispensable tool to grow your wealth, reduce taxes, and finance your life—on your terms.

You've known for years that something is wrong with our financial system but you could never quite put your finger on it. What can the average person do? The wealthy have been using this concept for generations. Unfortunately, the current financial industry to mainly focused on selling products. Mutual funds and term insurance are easy to sell. Another reason is you can't get Whole Life Insurance at the banks unless they consider you an ultra high net worth client. These may be the reasons you have not heard of the Infinite Banking Concept before. We believe we're hitting a tipping point where the Infinite Banking Concept will become a household term in the near future.

The simple answer is opportunity cost. When you pay for something with cash your money leaves you, never to return when it could have been earning interest. Using a properly structured dividend paying whole policy to secure a loan allows you to recapture the interest you would have lost if you simply used cash.

While the Infinite Banking Concept (IBC) offers many benefits, it’s not suitable for everyone. Here are the types of individuals for whom IBC may not be the best option:

1. Those with Limited Cash Flow
   IBC requires consistent premium payments to build cash value in a whole life insurance policy. If you have limited disposable income, it may be challenging to maintain the required contributions, making the strategy less effective for you.

2. Those Seeking Quick Returns
   Infinite Banking is a long-term wealth-building strategy, not a quick way to see returns. If you’re looking for immediate gains, you may find the slow and steady growth of a whole life policy less appealing.

3. Those with High-Interest Debt
   If you’re carrying significant high-interest debt, it may be wiser to prioritize paying that off before starting an IBC policy. The interest on your debt can outweigh the benefits of accumulating cash value in the policy.

The Infinite Banking Concept originated in the United States, and you might wonder, “Does Infinite Banking work in Canada?” The answer is yes, but with some key differences to keep in mind.

In Canada, policy loans taken against the cash value of a whole life insurance policy are tax-free only up to the adjusted cost base (ACB) of the policy. Any loans exceeding the ACB may become taxable, which can significantly reduce the effectiveness of the strategy if not managed carefully. This is why it's crucial to work with an acknowledged Infinite Banking practitioner who understands the Canadian tax rules and can help structure the policy properly.

In the U.S., policy loans are generally non-taxable, which can make the strategy somewhat simpler from a tax perspective. However, both in Canada and the U.S., the core concept remains the same: using participating whole life insurance to build cash value and leverage it for financing, while still enjoying the long-term benefits of compounding growth.

In short: Infinite Banking works in Canada, but careful planning is essential to avoid potential tax burdens. Partnering with an experienced professional ensures that your policy is set up correctly for the Canadian tax environment.

Yes, the Infinite Banking Concept (IBC) in Canada offers several valuable tax advantages, making it an attractive strategy for wealth building and estate planning.

1. Tax-Exempt Growth of Cash Value
   One of the main tax benefits of IBC in Canada is that the cash value inside a participating whole life insurance policy grows on a tax-exempt basis. This means that as the cash value accumulates over time, you do not pay taxes on the growth. This allows for compounding to occur more efficiently, helping your wealth grow faster compared to taxable investments.

2. Tax-Efficient Access to Cash Value
   In the early years of your policy, policy loans against your whole life insurance’s cash value are generally not taxable. This gives you tax-efficient access to funds that you can use for personal or business needs, without triggering immediate tax liabilities. However, as the policy matures, the adjusted cost basis (ACB) of the policy decreases. If you borrow beyond the ACB in the later years, portions of the loan may become taxable. To avoid this, many individuals in Canada choose to take collateral loans from a bank using their policy’s cash value as security. These collateral loans are not taxable, providing an alternative way to access funds while maintaining tax efficiency.

3. Tax-Free Death Benefit
   Another significant tax advantage of Infinite Banking in Canada is that the death benefit paid out to your beneficiaries is tax-free. This makes IBC an excellent tool not only for building wealth during your lifetime but also for estate planning. Your heirs will receive the policy’s death benefit without being subject to taxes, ensuring that your wealth can be transferred smoothly and efficiently.

Key Takeaways:

• Tax-exempt growth of the cash value means your wealth accumulates without being taxed while it grows.

• Tax-efficient access to your cash value through policy loans in the early years or through collateral loans later, keeps the strategy tax-advantageous.

• The death benefit is paid out tax-free to your beneficiaries, making IBC a valuable estate planning tool in Canada.

When considering the Infinite Banking Concept (IBC) as part of your financial strategy, it’s essential to be aware of the following potential challenges:

1. Interest Rates vs. Policy Returns
   Policy loans typically carry interest rates between 6%-10%, while the policy’s returns through dividends and cash value growth are generally around 4%-7%. This creates a negative arbitrage—meaning you’ll be paying more in interest than you’re earning within the policy, which can reduce the overall effectiveness of the strategy.

2. Policy Loans Can Become Taxable
   The Adjusted Cost Basis (ACB) of your policy decreases over time, and any loans taken that exceed the ACB become 100% taxable. In the early years, the ACB is higher, but as the policy matures, the ACB decreases, increasing the risk of taxable policy loans.

3. Difficulty with Third-Party Collateral Loans
   If you need to use your policy as collateral for a third-party loan (to avoid taxable policy loans), lenders may impose restrictions. Many banks prefer loan amounts of at least $500,000, and smaller loans may come with less favorable terms, making this option more challenging.

4. Growth is slow at First
   In the early years of your policy, the growth of your cash surrender value will be minimal. This is a long-term strategy that requires time for the cash value to build.

5. Full Understanding and Long-Term Commitment
   Infinite Banking requires a basic  understanding of how the policy works and the ability to manage it effectively over time. Because this strategy requires ongoing maintenance, you must be comfortable managing loan repayments, maintaining cash flow, and tracking policy details. Future access to the advisor who helped set up the policy may be limited, so having a solid grasp of the strategy is crucial.

Conclusion:

While Infinite Banking offers powerful wealth-building potential, it’s important to recognize these challenges and work with an acknowledged Infinite Banking Practitioner to fully understand the strategy’s complexities. Proper planning and financial discipline are key to making Infinite Banking a successful long-term solution.

Selecting the right Infinite Banking agent or broker is crucial to the success of your financial strategy. The right agent will help you set up a well-structured policy, maximize your cash value growth, and ensure long-term benefits. Here are the key factors to consider when choosing an agent:

1. Deep Knowledge of the Infinite Banking Concept
   Your agent should be highly experienced in the Infinite Banking Concept and able to clearly explain how the strategy works, including the role of participating whole life insurance, dividends, and policy loans. Look for someone who is an Acknowledged IBC Practitioner and has successfully implemented IBC for other clients so they can guide you through the intricacies of the process.

2. Access to a Wide Range of Whole Life Policies
   Ensure the agent has access to a variety of whole life insurance policies, particularly participating policies that pay dividends. A wide range of options gives you the flexibility to find the right policy tailored to your financial situation and goals.

3. Expertise in Underwriting Large Whole Life Policies
   If you have specific health conditions or other factors that may affect your premium rates, your agent should be skilled in underwriting large policies. They should be able to navigate these complexities and work to secure the most competitive premiums possible. This is especially important in Infinite Banking, where manageable premiums are key to maximizing cash value growth.

4. Proven Track Record in Infinite Banking
   Look for an agent who has successfully helped numerous Canadians become their own bankers. A proven track record in setting up and managing Infinite Banking policies shows that the agent has the expertise needed to support you throughout the process.

Conclusion:

Choosing the right Infinite Banking agent can make all the difference in successfully implementing this powerful financial strategy. Be sure to find an Acknowledged Infinite Banking Practitioner who checks all these boxes: deep expertise in Infinite Banking, access to a wide range of policies, experience with mutual life insurance companies, and the ability to secure competitive rates. Working with the right professional will help you maximize the benefits of Infinite Banking and ensure your long-term financial success.

The Infinite Banking Institute is the official body dedicated to educating and promoting the Infinite Banking Concept (IBC), a financial strategy originally developed by Nelson Nash. Nash, a seasoned life insurance agent with over 35 years of experience, formulated the concept to help individuals achieve financial independence by leveraging participating whole life insurance policies to build wealth and become their own bankers.

Nash’s journey into Infinite Banking began after careers in the forestry industry and the military, before he transitioned to life insurance. His groundbreaking ideas about using whole life insurance as a tool for financial control and wealth-building revolutionized the way many people think about personal finance.

Today, the Nelson Nash Institute (formerly known as the Infinite Banking Institute) continues to carry out Nash’s legacy. It serves as a resource for individuals and financial professionals looking to understand and implement the Infinite Banking Concept. The Institute offers educational materials, training, and certifications for advisors who want to specialize in IBC. Nelson’s son-in-law, David Stearns, now leads the Institute, ensuring that Nash’s vision and teachings remain accessible to those interested in becoming their own bankers.