FAQ

The Infinite Banking Concept is a strategy that uses a whole life insurance policy as a savings and investment vehicle. The cash value of the policy is used as a source of liquidity, which can be borrowed against, while the policy continues to earn interest and grow in value. The goal of the IBC is to help you become your own banker so that you can use your own money to finance your own investments, purchases, and other financial needs rather than relying on traditional financial institutions. The IBC was developed by Nelson Nash and is promoted by the Nelson Nash Institute.

Infinite Banking in Canada and everywhere involves purchasing a whole life insurance policy, which has both a death benefit and a cash value component. The cash value of the policy can be borrowed against and used as a source of liquidity for various expenses such as home purchases, investments, business expenses, and more. The policy continues to earn interest and grow in value over time.

Yes, Infinite Banking can be done in Canada. The infinite banking concept Canada is known as “Be Your Own Bank” and the strategy is similar to the US, but the specific laws and regulations surrounding whole life insurance policies in Canada may differ from those in the United States. It’s always important to consult with a financial advisor and a tax professional who is familiar with the laws and regulations in Canada, before implementing the IBC in Canada.

To become your own banker through Infinite Banking, you would purchase a whole life insurance policy and use it as a savings and investment vehicle. The cash value of the policy can be borrowed against and used for various expenses, such as home purchases, investments, business expenses, and more, while the policy continues to earn interest and grow in value. The goal is to use your own money to make loans to yourself, rather than borrowing from traditional financial institutions.

The Nelson Nash Institute is an organization that promotes the Infinite Banking Concept, which was developed by Nelson Nash. The institute provides educational resources and support for those interested in implementing the strategy, including seminars, webinars, and books. The Institute also offers a professional designation program for financial advisors who want to specialize in the IBC.

Yes, Infinite Banking utilizes a whole life insurance policy as a savings and investment vehicle. Whole life insurance is a type of permanent life insurance that provides both a death benefit and a cash value component. The cash value component is where the savings and investment aspect of the IBC comes into play.

There are several benefits to the Infinite Banking Concept, including:

• Having access to cash value in the policy for various expenses: The cash value of the policy can be borrowed against, which allows you to access your own money for various expenses, rather than borrowing from a traditional financial institution.
• Earning interest on the cash value: The cash value of the policy earns interest, which can help it grow over time.
• Potential for the cash value to grow over time: The cash value of the policy has the potential to grow over time, which can help you achieve your financial goals.
• Provides death benefit: As a whole life insurance policy, it also provides a death benefit to the policyholder.

There are some potential downsides to the Infinite Banking Concept, including:

• The strategy may not be suitable for everyone: The IBC may not be the best strategy for everyone, as it depends on individual financial goals and circumstances. It’s important to consult with a financial advisor to determine if it’s a suitable option for you.
• It may not always perform as well as other investment options: The performance of the IBC will depend on various factors, such as the insurance company you choose, the type of policy, and the interest rate earned on the cash value. It’s important to do your research and compare the performance of the IBC to other investment options.
• The cost of the policy: Whole life insurance policies can be more expensive than term life insurance policies, so it’s important to take the cost into consideration when deciding if the IBC is right for you.
• Policy loans can decrease the cash value and death benefit: Borrowing against the cash value of the policy can decrease the cash value and death benefit, so it’s important to keep this in mind when deciding how much to borrow.
• Tax implications: The IBC may have tax implications that you should be aware of. It’s always important to consult with a tax professional who is familiar with the laws and regulations in Canada.

Yes, Infinite Banking can be used as an alternative to traditional banking by using the cash value of the whole life insurance policy for various expenses, such as loans or investments. By using your own money to make loans to yourself, you can avoid the high interest rates and fees associated with traditional financial institutions.

The Infinite Banking concept was developed by Nelson Nash in 1980. It is not a new concept, but it is not widely adopted. The concept of using whole life insurance as a savings and investment vehicle is not new, but the specific strategy of becoming your own banker using a whole life insurance policy is unique to the IBC.

As with any financial strategy, there is always some level of risk involved. The success of the IBC will depend on various factors, such as the insurance company you choose, the type of policy, and the interest rate earned on the cash value. However, by consulting with a financial advisor and fully understanding the details of the strategy, you can minimize the risks involved.

Yes, Infinite Banking can be used for retirement planning by using the cash value of the whole life insurance policy for various expenses, such as loans or investments. The cash value of the policy can be used as a source of liquidity, which can help you achieve your retirement goals.

Infinite Banking differs from traditional banking in that it utilizes a whole life insurance policy as a savings and investment vehicle, rather than traditional bank accounts and investments. With traditional banking, you deposit your money into a bank account and earn interest on it. With Infinite Banking, you use your money to purchase a whole life insurance policy and earn interest on the cash value of the policy. Additionally, with traditional banking, you borrow money from the bank, while with Infinite Banking, you borrow money from yourself.

Yes, Infinite Banking is legal in Canada. However, it is important to note that the specific laws and regulations surrounding whole life insurance policies in Canada may differ from those in the United States. It’s always important to consult with a financial advisor and a tax professional who is familiar with the laws and regulations in Canada, before implementing the IBC.

Yes, Infinite Banking can be used for business purposes by using the cash value of the whole life insurance policy for various expenses, such as loans or investments for the business.

The amount of money needed to start Infinite Banking will vary depending on the type of whole life insurance policy you choose and the insurance company you choose to work with. It’s best to consult with a financial advisor to determine the best option for you.

Whether you can cancel your Infinite Banking policy will depend on the terms of the policy and the insurance company you choose to work with. It’s best to consult with a financial advisor and review the policy terms before deciding.

Yes, you can borrow against the cash value of your Infinite Banking policy. However, it’s important to keep in mind that borrowing against the policy may decrease its cash value and death benefit.

Yes, Infinite Banking can be used to pay off the debt by borrowing against the cash value of the whole life insurance policy and using the funds to pay off outstanding loans or credit card balances.

No, Infinite Banking is not only for the wealthy. However, as with any financial strategy, it’s important to consult with a financial advisor to determine if it’s a suitable option for your specific financial situation.