Infinite Banking Concept in Canada

Infinite Banking Concept to Becoming Your Own Banker

What is the Infinite Banking Concept?

The Infinite Banking Concept (IBC) is a financial strategy that has gained popularity in recent years.

Basically, it involves using a specially designed dividends-paying whole life insurance policy as a financial tool to create a personal banking system.

This system can be used to finance purchases, save money, or invest for retirement.

In this blog post, we will explore the basics of the IBC and how it can be used to achieve financial freedom.

How does the Infinite Banking Concept work?

The Infinite Banking System is based on the idea that you can use dividends paying whole life insurance policy to create your own personal banking system.

Actually, when you purchase this specially designed life insurance policy, over time you build up cash value. This cash value can be accessed through policy loans, which can be used for any purpose. 

For instance, by using policy loans, you can finance purchases, investments or supplement your retirement income while still earning interest on your cash value.

The IBC also involves overfunding your life insurance policy to maximize the cash value growth. This means that you contribute more money to your policy than is required to keep it in force. When you choose to overfund your policy, you have the advantage to build up the cash value more quickly.  Therefore, this increased cash value, in turn, allows you to access a higher amount of funds through a policy loan.

Overfunding your policy can be an effective strategy to build up cash value and maximize your borrowing potential.

See how Infinite Banking Concept can help you take control of your finances and build wealth

Benefits of implementing the concept

There are several benefits to using the Infinite Banking Concept.

First, it allows you to become your own banker.

Instead of relying on traditional banks for loans and financing, you can use your personal banking system to finance purchases, and investments. This can save you money in the long run, as you can avoid paying interest to traditional lenders.

Second, the IBC allows you to build up cash value over time. 

This cash value can be used for any purpose, including retirement savings. By using policy loans to finance investments, you can earn interest on your cash value while still benefiting from the growth of your investments.

Third, the IBC can provide a source of tax-free income in retirement. 

By taking policy loans instead of withdrawals from your life insurance policy, you can avoid paying taxes on the money you receive. This can help you save money on taxes and increase your retirement income.

Pros of the IBC

Infinite Banking Concept Canada

One of the main benefits of IBC is that it gives policyholders more control over their finances. 

By using a personal banking system, you can borrow money when you need it, rather than relying on loans from traditional banks. This allows you to make financial decisions on your own terms. 

Consider what you want to achieve financially in the short and long term. Do you want to save for retirement, pay off debt, or build wealth?

Another advantage of IBC is the tax benefits it provides. 

Whole life insurance policies are considered tax-deferred, which means that policyholders do not have to pay taxes on the money they borrow from the policy. Additionally, you can withdraw money from the policy tax-free, as long as it is within the policy limits.

IBC can also be used as a tool for legacy planning. 

For example, by accumulating wealth within the policy, policyholders can pass on a tax-free inheritance to their beneficiaries. This can be especially beneficial if you want to leave a financial legacy for your children or grandchildren.

Cons of the IBC

One of the biggest drawbacks of IBC is the cost. 

The premiums for these policies can be higher than those for term life insurance policies, which can make it difficult to overfund your policy. This can be a significant financial burden, especially for those who are on a tight budget.

IBC is a complex financial strategy that requires a lot of planning and management. 

Meaning that the policyholders need to understand the intricacies of the policy and how to use it effectively. This can be challenging for those who are not familiar with financial planning and management.

The IBC requires commitment, discipline and planning. 

In order to maximize the benefits of this strategy, you need to be committed to overfunding your policy and using policy loans responsibly. Basically, if you fail to do so, you may not see the same benefits as someone who is committed to the strategy.


The Infinite Banking System Concept can be a powerful financial tool for those who want more control over their finances and are willing to put in the effort to manage it effectively.

For the right person, this can be an excellent wealth-building strategy that when used properly can significantly increase the family’s wealth for generations to come.

Actually, it is a financial strategy that can provide many benefits including:

However, the IBC may not be the best strategy for everyone.

It is important to note that the decision to use the Infinite Banking Concept should not be made lightly.

Infinite Banking Concept is a complex financial strategy that requires careful consideration and planning. It is recommended that you consider your financial goals, risk tolerance, and financial situation before deciding whether it is the right strategy for you.

If you are interested in using the IBC to achieve financial freedom, it is important to consult with a knowledgeable financial advisor to determine if this concept is right for your specific financial situation. 

See how Infinite Banking Concept can help you take control of your finances and build wealth

Nelson Nash Infinite Banking
Nelson Nash

Nelson Nash is the founder of The Infinite Banking Concept.
He was a visionary who saw the potential for individuals to take control of their finances by becoming their own bankers. His creation of the Infinite Banking Concept has revolutionized the way people think about personal finance and provided a viable alternative to traditional banking. Through his teachings and writings, Nash has inspired many to take charge of their financial futures and achieve financial freedom. His legacy will continue to inspire generations to come.

The Infinite Banking Concept is a complex financial strategy, and its suitability may vary depending on individual circumstances. Consult with a qualified financial advisor for personalized advice based on your specific needs and goals.

Financiallysecure’s content is meant for informational purposes only and should not be considered financial, tax or legal  advice.