The TRUTH About Infinite Banking! (Is It a Scam?)

We know how infinite banking is pitched on social media: returns are guaranteed, there’s no risk, and you can access your money whenever you want. What is the TRUTH of infinite banking?

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[JimRohn-uc]

Can yall please do a video on “index-universal life insurance (IUL)” as well please?

Which claims to be different from term and whole life insurance. Those IUL’s seem like a scam as well.

[TonysMTB]

So I’ve been watching a lot of videos about infinite banking and the pros and cons. It’s clear that it is not the perfect system and that there is some flaws. My question is where do I put my money then? Where do I put my money that will allow me to, withdraw money against my savings. Without actually taking my savings. I need to know this why is nobody talking about alternatives?

[timprussell]

From all the information it seems it is just another angle to sell whole life policies. On other videos from The Money Guy and others man some people who have bought into this hook line and sinker and highly defensive.

[tracym]

Infinite banking is just a fancy sounding annuity in my book. Just buy the s&p

[mark]

Murphy's law. You can fool some of the people some of the time... usually that sufficient.

[Boxsalesman]

3 infinite banking videos in 2 days? Seems a bit weird

[InsuranceandEstates]

Not once do they talk about infinite banking.

[jeffreybolden]

I don't sell insurance but a lot of these comments are just dead wrong.
For whole life the death benefit grows as a fixed percentage of the cash value. So surplus dividends realized as cash value will translate at the same ratio (age and structure dependent) into death benefit as the existing cash value.

All permanent life insurance products offer either non-direct recognition or direct recognition (wash loans). Many policies offer both.

The vote with your feet stuff is correct. A 1035 is expensive all throughout the life of a policy. You need to pick your policy and company with care. Much more like a loaded mutual fund product in the 1970s rather than say an ETF or no load today.

Whole life is designed so that cost of insurance is a relative stable percentage fee. That's the purpose of the cash value. Grossly oversimplifying the way whole life works is: every year you buy 3 1/2% less insurance with 3 1/2% more money to cover the 7% annual increase in cost of insurance.

[edhcb]

Infinite bank is not a scam. It’s not a good idea, but it’s not a scam.