what is the Infinite banking concept?

The In finite Bank ing Con cept ( I BC ) is a financial strategy that allows individuals to use their whole life ins urance policy as a personal bank . It was developed by Nelson Nash in his book " Be coming Your O wn Bank er ." The basic idea is that by using a properly struct ured whole life ins urance policy , individuals can access their own source of funds on demand , without having to go through a traditional bank or financial institution . \n \n The I BC works by using the c ash value accum ulation feature of a whole life ins urance policy , The c ash value is a sav ings account that grows over time , tax - de ferred , and is back ed by the ins urance company ' s promise to pay a death benefit . With I BC , individuals can borrow against the c ash value of their policy , tax - free , to fund their own invest ments or other financial needs . The borrow ed funds can be rep a id over time , and the interest paid goes back into the policy ' s c ash value . \n \n The I BC has often compared to a 4 0 1 ( k ) or I RA , but with a key difference . With a traditional ret irement account , you are limited to the invest ment options offered by the financial institution man aging the account . With I BC , you have access to the entire c ash value of your policy , which can be inv ested in a wide range of assets , including stock s , b onds , real estate , and more . \n \n Pro ponents of the I BC argue that it provides individuals with more control over their fin ances and a more secure source of funds in the event of an economic dow nt urn or other financial crisis . However , it ' s important to note that the I BC is not suitable for everyone , and it ' s important to consult with a financial ad visor to determine if it ' s the right strategy for your individual financial situation . </s>