How the 'Be Your Own Bank' Strategy Actually Works

Online gurus often speak about infinite banking as a fool-proof strategy but there is a lot that they don't tell you.

In this video, I break down the concept of Infinite Banking, starting with a foundational understanding of life insurance. I explain the differences between term and permanent life insurance, and delve into the cash value component of permanent policies. I illustrate where many online gurus misrepresent this type of borrowing and why this confusion exists around infinite banking. I conclude by explaining the tax implications of this strategy, the importance of constructing your policy correctly, and common implementation pitfalls. By the end of this video, you'll have a clear understanding of Infinite Banking and whether it's the right strategy for you.

LF0008

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[Bigwilli]

It's basically about using whole life insurance as a savings and borrowing too

[Zadnak]

Great video! I thought it was well explained for permanent insurance. One that wasn't explained was all the fees involved with permanent insurance, as well as the interest rates involved with borrowing.

[mgatling]

Great informative video Edward. Thank you for being enlightening.

[anonimo]

Lex Luthor really knows his thing, thanks for the info

[firecraig]

Good video. Many things right. Need to explain the difference between whole life and universal life. How they work and what the cash value is in each because it’s not the same.

[ZachHalvorson]

But isn’t the money you invest in the premium, not considered a tax deduction like investing in an IRA?

Because if that’s the case, then it wouldn’t matter on the non taxable event when you take the loan out, since you were taxed on the money before you put it in the policy, right? Only tax benefit then would be the gains you can loan against that wouldn’t be taxed. Am I thinking this properly?

[robyee]

So the death benefit has to be higher than the cash value or it becomes an endowment contract? Great video well explained!

[blakelafever]

What happens to the cash value after you die? Specifically, if you've "overfunded" the policy in order to borrow against it, isn't at least some of that cash value mine?

[gigiethridge]

With regards to the MEC, I'm sure there is a "way around it"! as per usual. Absolutely nothing wrong with being craft politically creative!

[starvintage]

Would having this under a trust change anything as far taxes if you don’t meet the right criteria for whole life policies?

[camilogalindo]

How did join upleveled and how much is it and when we get it will you structured the policy the right way for us or help us?

[ByAbdulrahman]

One of the most valuable creators on social media 🫡 🙏 keep it up