What is the infinite banking concept?

Infinite Banking is a financial strategy that involves using a Par Whole Life insurance product as a tool for personal banking. The concept was popularized by Nelson Nash, it allows individuals to create their own private financial system by leveraging the cash value of a Par whole life insurance product.

Unlike traditional banking, where you rely on external institutions to store and lend money, Infinite Banking lets you borrow against the cash value of your policy to fund personal loans, investments, or emergencies while still earning dividends on the amount you’ve borrowed. The policy accumulates value over time through guaranteed growth, and as you repay the loans, you can continue to borrow again, essentially creating a cycle of self-financing.

The strategy provides benefits such as tax-deferred growth, flexibility, and the ability to avoid traditional lending institutions, but it requires careful planning and long-term commitment to maximize its effectiveness. It's particularly appealing to those looking for a more controlled, private, and sustainable method to build wealth and manage cash flow.