Infinite Banking Explained for Beginners
How to Borrow From Yourself, Build Wealth, and Break Free From Traditional Banking
Ever wondered how to finally make sense of Infinite Banking without getting lost in financial jargon?
In this article, we’ll break it down step by step—no fluff, no confusion. Just a simple, beginner-friendly path to understanding how you can borrow from yourself, grow your money, and take control of your financial future.
so, Why Infinite Banking?
Every month, your paycheck comes in—and then it flows right back out: car loans, credit cards, mortgage payments, student debt, living expenses, and the like. The banks get paid, but you’re stuck in the same cycle. Most people pay themselves last and usually get left out of the equation. I new I needed to find a more efficient and effective way to pay myself first.
That’s the exact moment I started looking for a smarter way to grow our money—without giving up control. And that’s when I discovered Infinite Banking.
Back then, I was still single. I had no idea how life-changing this concept would be. Today, it’s the foundation of how my wife and I manage our finances. We now own multiple Infinite Banking policies, including one for our child. It's become our family's financial legacy.
What Is Infinite Banking?
Infinite Banking is a financial strategy where you use a specially designed whole life insurance policy to grow cash value—and borrow from it like your own private bank. The policy is engineered to the specifications that serve you best, as no two scenarios are exactly the same. Infinite Banking is a process, not a product.
Instead of storing money in a traditional savings account that earns little interest, you warehouse your funds in a dividend-paying whole life policy. You overfund it, let it grow, and then borrow from the policy when needed. This is how your banking journey begins.
Learn more in our post: Infinite Banking 101: What It Is and Why It Works
Further Reading:
Real-Life Example: James and the SUV
Let’s talk about James, a fictional but realistic example we use to explain how Infinite Banking works in real life.
James was tired of dealership financing and wanted control over his money. Over a few years, he paid $60,000 into his policy, giving him access to more than $40,000 in cash value.
When James needed to buy a vehicle, he borrowed $30,000 from the cash value in his policy—without interrupting the growth of his money. The cash value is provided to him by the insurance company, while his dollars stay safe and secure in the policy. The collateral for the cash value policy loan is the death benefit, which will always continue to increase due to how the policy is structured .
Read the full breakdown of James’s example here
How Borrowing From Yourself Actually Works
Fund Your Policy
Set up a custom-designed whole life policy with the help of an Infinite Banking coach.Let It Grow
Overfund it to accelerate cash value growth and plan how to deploy your capital. This is where our guidance comes in.Borrow When Needed
Take out a policy loan and use strategy on how to direct your cash flow —your cash value continues to grow as if the loan never happened.Pay Yourself Back
You’re in control. You choose the terms. Just like the banks, you make the rules.
Read: How to Set Money Aside and Pay Yourself Back
Pros and Cons of Infinite Banking
Pros:
Access funds anytime without credit checks.
Uninterrupted compound growth.
Tax-advantaged withdrawals and loans.
Protection through a death benefit.
Cons:
Slow build-up in early years.
Requires discipline to repay yourself.
Must be structured properly to avoid becoming a Modified Endowment Contract (MEC).
See: Pros and Cons of Infinite Banking – Insurance & Estates
Who Is Infinite Banking For?
Families looking for stability and control.
Business owners and self-employed individuals.
Parents planning long-term financial security.
People who want to leave a legacy through a policy that keeps growing.
Those who value guarantees.
Not ideal for:
Those seeking short-term gains and lack the ability to think long-term.
People unable to make consistent contributions.
How to Start Your Infinite Banking Plan
Step 1: Work with an expert
We’ll design a policy that maximizes cash value while aligning with your goals. Once you're ready, we’ll help you begin the application and underwriting process with a top-rated mutual insurance company.
Schedule a call with me, Coach Keith
Step 2: Get Approved and Activate Your Policy
Once approved, you’ll make your first payment to officially activate your policy. At that point, your cash value begins accumulating, and you’re on your way to becoming your own banker.
Step 3: Fund and Borrow with Purpose
After the policy is active and growing, you’ll have access to capital to use for debt payoff, business opportunities, large purchases, or family planning—without interrupting your growth.
Our Family’s Infinite Banking Journey
Infinite Banking changed everything for our family. I started my first policy as a single man looking to gain control of my finances. After getting married, we made it our family system—adding a second policy, a third, and now a fourth for our child.
It’s our way of saying:
“We won’t wait until retirement to use our money. We’ll use it now—on our terms—while still building long-term wealth.”
Still Have Questions?
Here are some common ones we get:
❓Will I lose growth when I borrow?
No. Your full cost basis continues to grow as if you never borrowed. Every dollar you pay into your policy will remain in your policy. The cash value loan that is collateralized against your increasing death benefit comes from the insurance company. It is not YOUR money, therefore your dollars are safe to grow and compound uninterrupted.
❓How soon can I borrow?
Typically within the first 30 days if it is designed properly - however we encourage clients to develop a plan for how and when to take loans so they can practice being a “good banker”.
❓What if I don't qualify?
You can own a policy on someone else—like a spouse, child, or business partner. You must have insurable interest in the individual.
Read: What If I Don’t Qualify for an Infinite Banking Policy?
Ready to Begin?
You don’t have to figure this out on your own. Get your free beginner’s guide and take the first step toward becoming your own banker.
Final Thought
Infinite Banking isn’t about gimmicks or hype—it’s about ownership.
You can save, spend, and grow wealth— at the same time with the same pool of money— all while protecting your family and building a legacy.
You were never meant to rely on banks for permission.
With the right structure and the right mindset, you can take control—one policy at a time.
Matthew 25:26-28, Proverbs 22:7
