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What do you do with the money you want to save as your family buffer for emergencies, for unexpected expenses in your rental, or even reserves for your business? 

While we all tend to use banks, the FDIC assurance makes us comfortable and gives us a false representation that we are not losing our money, but is this true?

With inflation hitting its all-time high in 2022, at 8.5%, if we get a moderate 1-3% from our banks, this hard-earned emergency money is still losing 7%+ to inflation, diminishing the value of money year after year. 

America’s wealthy like Rockefeller, Walt Disney, and more have trusted a family/infinite banking system generation after generation for a good reason. Today we discuss infinite banking, which has been considered the most effective way to grow, preserve, protect, and pass your generational wealth to the next generation.

What is the Infinite Banking System?

This method was used by the wealthy of America for generations after generations to create your own family bank. This structure is created on dividend-paying whole life insurance products, with mutual life insurance companies, based on a specific structure. 

In this blog, we will discuss 13 Reasons Why Save in Infinite Banking System Vs Your Bank. Keep reading…

1. Compound Interest -The 8th wonder of the world (Albert Einstein)

We all understand the power of compounding. The basis of the Infinite Banking system is to overfund the policy premium required in a very specifically structured life insurance product, so the dividend is provided year after year on high cash in the account, creating a snowball effect for the growth, using principles of compounding, that can be used during the life of the insurance as cash value and passed as death benefit as generational wealth. The growth magic happens as it compounds, year after year, without tax implications within your policy, creating a Snowball effect of exponential growth.

2. Guaranteed Growth + Dividend 

This system has never lost money in over 150 years and has survived even the worst economic downturns and even the great depression. The insurance contract with your whole life insurance company, specifically mutual life insurance companies, will indicate guaranteed growth % and in addition, historically proven dividends. Together providing guaranteed and a sustainable growth 

3. Better Growth than Banks 

Infinite banking provides consistent historical dividends. This growth can be tax-deferred, making a big difference. In contrast, in banks, you make 1-2 percent earnings (prior to 2023) or 4-5% during 2023 but pay taxes on it, however, the mutual companies have historically provided consistent dividends (Around 6% in 2022, with most mutual companies, even during a low-interest rate environment). Better and consistent growth than bank provides a year-after-year compound effect.

4. Tax-Deferred Accumulation 

Within the infinite banking system, the money grows tax-deferred. a correct setup policy offers tax-deferred growth, saving on taxes on the growth.  Your money grows compounded year after year, without losing on taxes, and provides exponential growth.

5. Tax-Free Distributions

The distributions to the basis point are tax-free. Beyond that, you can set up a strategy of leverage from your bank, to further extend your distributions in a tax-free environment. It’s like accessing your equity from your home without really selling it using a HELOC.

6. Use for Multiple Purposes

 Most retirement accounts or 529 educational plans are set up for a specific purpose, like retirement, or education. When you are accessing your money from your bank directly/via leverage, you could use it for any purpose, your emergencies, paying off an AC repair, or business inventory, investment, education, retirement, you can even use it for travel if you want, there are no questions asked.

7. No Limit on Contribution

When was the last time you could contribute to your retirement account or educational 529 plan without limit? With the infinite banking system, there is no limit on contributions. Instead, you can create your own limit while creating the structure, based on a range of what you would like to contribute. The more you contribute, the higher will be the growth of your money. If set up correctly, you can stop contributing to it and grow it on autopilot after 10-20 years, and reap the benefits during your life, and pass it on to your heirs tax-free.

8. Unrestricted Access

With the Infinite Banking System, you can access your money for any reason, any time without restrictions or questions OR at any age and you don’t have to wait for retirement or require any educational need. It can be used for any purpose at any age, providing you with ultimate flexibility. There are no approvals, credit scores, documents, or proof of income or assets to be satisfied by the underwriter, like with traditional banks. You have unrestricted access to your growth.

9. Automatic Asset Protection at No Cost

When you have a creditor attack, what do you think is most vulnerable and accessible to the creditors? Your Stock portfolio, bank accounts, and other assets. Asset Protection is sometimes impossible to implement or extremely expensive and complicated. The money in the Infinite Banking system provides automatic protection+ and is not visible to creditors or attorneys, it does not show up on your assets.

10. Perfect Place to Park Money

Have you asked yourself- when you are in between your investment or getting ready to save your investment, where are you keeping the money? What growth or protection is it providing you? Typically, the money stays in the bank, losing growth or to inflation, between investments. Whereas, if you have been saving it in your own Infinite Banking system, it continues to grow even between investments, compounding in a snowball, which makes it a perfect place to park money.

11. Live your Life Insurance: Flexibility and Liquidity

Life insurance was supposed to be structured as your death benefit, in short money that you can never use or access. But with this system, you can Live your Life Insurance. You can access your money anytime i.e., you can withdraw or borrow your money in case of emergencies or any other need, just like banks. Also, you won’t have to go through credit checks or pay any origination fees or penalties, in a very quick turnaround time you can access your money. Remember the key is to borrow NOT withdraw, as the last thing we want is to stop the velocity of your snowball. That is, in the purest sense of the word, liquidity, without actually impacting it. 

Furthermore, when you take out a loan from the insurance company, most of the time you have the flexibility to choose how and when to repay it (something that banks do not allow).

12. The AND Asset not OR

When you are ready to buy a house or pay for education, you typically would withdraw money from the traditional bank and pay to the institution. The concept of Infinite Bank is out of Box and out of Bank strategy, that lets YOU keep the money to SAVE and grow compounded in a snowball effect (within Infinite Banking System) AND INVEST (investment of your choice) at the same time, creating an arbitrage of using the same $$$ at two different places AT the Same time.

Create an Infinite Banking System with consistent compounded growth. When you need money for an expense (education, retirement income, etc) or an investment, use a leverage strategy on your own money. Then pay the interest-only or interest + principal on your loan as you prefer till you want to use it. Your money inside Infinite Banking was never retrieved, so you can still earn interest and harness the growth on the investment outside where you used this money.

You can repeat this process as many times as you want!

13. Generational Wealth

Infinite Banking System allows you to pass tax-free generational wealth without hassle to the next generation as a death benefit that usually banks do not provide.

When you pass the death benefit to the next generation, this is passed tax-free till the federal estate tax exemption limit. You can use Estate Planning strategies to create tax-free generational wealth beyond this limit.


The method underlying Infinite Banking – structured as your family bank for the growth and protection of wealth, with dividend-paid life insurance – has proved reliable and has been employed by wealthy families for centuries. 

Do NOT mistake this for your typical life insurance though, it has to be structured correctly at the inception and most life insurance agents do not understand the structure 

At Think Outside the Stocks, we provide you with a FREE consultation and set this structure carefully after understanding your needs and purpose. reach out to us if you would like to just see, without any obligation, if this is the right tool for you in maximizing the potential of your wealth 

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*As of 2022

+In most states

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