top of page
  • Manny

What is Infinite Banking?


Infinite banking is a concept that involves using a whole life insurance policy as a savings and investment vehicle. It involves taking out a whole life insurance policy, borrowing against the cash value of the policy, and then using the borrowed funds to invest in other vehicles such as real estate or stocks. The idea is that the returns on these investments will be greater than the interest paid on the loan, and the policy's cash value will continue to grow over time.


Proponents of infinite banking argue that it is a way to build wealth without paying taxes on the interest earned, and that it can provide a source of funding for expenses such as retirement or education. However, it is important to note that there are risks and costs associated with this strategy and it is not suitable for everyone. It is important to consult a financial advisor before making any decision.


Infinite banking has gained popularity in recent years because of several factors. One of the main reasons is that it is seen as a way to gain access to cash value and build wealth without paying taxes on the interest earned. Additionally, whole life insurance policies typically have a guaranteed cash value and death benefit, which can provide a sense of security for policyholders.

Another reason why infinite banking is popular is that it allows individuals to have more control over their money. By borrowing against the cash value of the policy and using the funds for investments, individuals can choose where to put their money and potentially earn higher returns than they would with traditional savings accounts or CDs.

Additionally, proponents of infinite banking argue that it can provide a source of funding for expenses such as retirement or education, as well as a source of liquidity during financial emergencies. However, It's important to note that Infinite banking is not suitable for everyone, it is a complex and high-risk strategy, and it's important to consult a financial advisor before making any decision.

If you have any questions or to speak with one of our advisors, email us at info@copawealthstrategies.com or call us at (503) 217-4150.



0 views0 comments
Post: Blog2_Post
bottom of page