Is taking control of your finances important to you? Being curious and discerning about what financial strategies you implement is a good thing; in fact, we encourage it. We also understand that it’s easy to be skeptical of new strategies, especially when your financial health and well-being are on the line.
You may have heard of the Infinite Banking Concept and wonder if it’s a scam or a realistic system that can benefit your family. At first glance, it may seem complex as it’s different from the traditional banking you may be used to. You may also be hesitant to try a new financial system or strategy, especially if it’s a new concept or if you had a negative experience with financial advice in the past.
We encourage you to do your research before you decide if Infinite Banking is for youーand this article is a great place to start. Keep reading to understand how the Infinite Banking Concept works and the truth behind the myths you may have heard about it. Our goal is to help you make an informed decision about whether Infinite Banking is right for you.
Why Do People Think Infinite Banking Is a Scam?
Our team of Financial Advisors has talked to many clients over the years, and we’ve heard many reasons why they were initially wary of Infinite Banking.
Here are the top 3 reasons some feel hesitant to try Infinite Banking (and the truth behind each one):
“It feels complex.”
Anything new can seem complex at firstーlike the first time you got behind the wheel of a car. With practice and a good driving instructor, driving now feels second nature.
In the financial world, new concepts can seem equally complex. That’s why legitimate financial systems and strategies will include learning resources so you can learn as much as you can about them before starting. They will also supply you with a knowledgeable advisor (in our case, an Infinite Banking Advisor) who can answer your questions and help you along the way, putting you in control of your finances, not the banks.
“I know people who say it didn’t work for them.”
We’ll be honest, the Infinite Banking Concept isn’t for everyone. You must be dedicated to your financial freedom and have the right advice and support to see the long-term benefits.
We’ve talked to some clients who were hesitant to switch to Infinite Banking because they know someone who didn’t benefit from it. In many cases, those who don’t meet their financial goals have at least one of three things in common:
- They didn’t understand the concept. They were either misinformed or didn’t take the time to understand the system to ensure it was right for their goals before starting.
- They didn’t dedicate themselves to setting their systems up correctly. A financial advisor can help you get all your pieces in a row so you can be in control of your money.
- They gave up. They didn’t see their return on investment (ROI) immediately and “gave up” on the system too early.
You can increase your chances of success with an Infinite Banking Advisor to help answer your questions and set up your policy correctly so you can reap the tax and penalty-free benefits now.
Want to see Infinite Banking in action? Read this story of [insert summary of example].
“It seems like a get-rich-quick scheme.”
Infinite banking isn’t a get-rich-quick scheme but rather a long-term financial strategy. As a long-term process, it often requires discipline and a financial mindset shift to reap the system’s full benefits. The Infinite Banking Concept is about harnessing the power of the money sitting in your whole life insurance policy now without sacrificing your future cash flow.
Ready to take control of your financial future?
Speak with an Ascendant Financial Advisor today and start building a strategy that protects your legacy.
What Is The Infinite Banking Concept?
Infinite Banking is for those who want to take control over their financial independence without relying on traditional banks and limited cash flow. It’s not an investment product but a system that allows you to become your own banker using a specially designed participating whole life insurance policy.
Your policy will build its cash value over time, and you can borrow against this cash value to help you meet your financial goals, like purchasing a car, investing, and paying for business expenses. You get access to your money now, when you need it, without interrupting your money’s growth inside the policy.
It creates a personal lending pool by controlling your cash flow. The real power lies in making your money work for you and saving interest you’d have traditionally paid to the banks. That’s what R. Nelson Nash explains in detail in his classic book, “Becoming Your Own Banker.”
Get your copy of Nash’s book and read other Infinite Banking Resources on our website to learn more about the system.
What’s the difference between Infinite Banking and traditional banking?
Until now, your financial know-how and experience have been with traditional banking and investments with banks, financial institutions, or lenders. To help you understand, here’s a quick comparison between traditional and Infinite Banking:
| Infinite Banking | Traditional Banking | |
|---|---|---|
| Concept | Borrow against your whole life insurance policy | Borrow from the bank (with their interest and fees) |
| Control | You control lending amounts and terms | The bank controls lending amounts and terms |
| Liquidity | Can access cash value during your lifetime | Limited access to funds that are “locked in” investments |
| Repayment | Flexible schedule; no due date | Fixed repayment terms |
| Financial Growth | Policy continues to grow (and pay dividends where applicable) | Low savings interest |
| Risk | Lower if working with a financial advisor | Riskier as it’s dependent on bank and market conditions |
Is Infinite Banking Right for Everyone? No—and That’s Okay
Everyone’s financial situation and goals are unique. Infinite Banking isn’t for everyone, and that’s okay. Here’s how to determine if your family might benefit from this system:
Who Infinite Banking is for
Infinite Banking is for those willing and able to dedicate themselves to their financial freedom without sacrificing their future cash flow. Infinite Banking is often successful for those who:
- Have (or can get) a participating, high early cash value whole life insurance policy
- Ready to dedicate to this system long term
- Have financial needs now but lack cash flow to fund them (buying cars, investments, business expenses)
- Have wealth they want to protect for generations
- Are in a higher tax bracket and want the sheltered financial growth of whole life insurance
- Have 3, 6, or 12 months of emergency savings to set aside
Need help to get to a positive financial place? Read more about how to plan for your financial independence.
Who Infinite Banking is not for
Infinite Banking isn’t right for everyone, including those who:
- Want to get rich quickly
- Have inconsistent or tight cash flow (or living paycheck to paycheck)
- Don’t need or want life insurance
- Have major debts or need to build more consistent financial habits
- Don’t understand Infinite Banking
Debunking Common Myths vs. Reality
Myths can travel fast, but knowing which are myths or misconceptions and what the truth is can help you determine if Infinite Baking is right for you. Here are some common myths about this financial system:
Myth: It’s a scam because it uses whole life insurance
The Infinite Banking Concept is a strategy, not a product. Use your policy’s cash value as a private banking system that you can borrow from and repay as you need. Whole life insurance has gotten a bad reputation as many advisors oversell its benefits to customers without explaining the long-term timeline of this investment.
The good news is that with an experienced financial advisor and the dedication to make this a long-term financial strategy, you can use this system to fund your goals throughout your life without penalties, high interest, or reliance on a third-party lender.
Myth: You’re just borrowing your own money
When you borrow against your whole life insurance policy, you’re not withdrawing your own money. Your cash value remains intact and continues to grow uninterrupted. Instead, you’re accessing the insurance company’s money, using your policy as collateral.
Unlike traditional loans, you control the terms, including repayment amounts, schedules, and even whether you repay at all. And because your cash value keeps growing, you’re not losing the benefits of compounding growth.
Myth: It’s too expensive
There is some truth to the myth that Infinite Banking can be expensive to start, but in the long run, you have more flexibility and freedom and can save on bank fees and interest.
Insurance premiums for whole life insurance are higher than term life insurance, and you spend the early years paying towards fees and insurance, not the cash value. However, after this period, it provides greater liquidity of your wealth, reducing your reliance on banks. For success, you should begin your Infinite Banking journey with good financial habits and the long-term ability to make higher premium payments.
Myth: The cash value disappears when you die.
Your cash value doesn’t “disappear” when you die. The cash value is the value of the death benefit. When the death benefit is paid out, it includes the value that’s been growing inside the policy all along.
Take control of your financial future.
Schedule a consultation with Ascendant Financial and ensure your financial choices align with your long-term goals — before it’s too late.
The Role of the Advisor: Why Quality Guidance Matters
Individuals in Canada and the US can take control of their finances today with the expert advice of a financial advisor. With an experienced, licensed financial advisor at your side, you can understand the best ways to use Infinite Banking strategies to provide for your family today and maintain generational wealth for the future.
An Advisor from Ascendant makes all the difference. They can provide personalized coaching and advisory services to ensure your whole life policy is set up correctly and that you use it for your greatest benefit. This can help you avoid costly pitfalls.
The Ascendant Financial team, led by Founder Jayson Lowe, has helped thousands of individuals, families, and entrepreneurs experience financial empowerment through the Infinite Banking Concept. With over 1,901 Google reviews, we’ve earned the trust and satisfaction of clients across North America. We’re here to coach you to build a future that’s bigger than your past…no corporate jargon, just straightforward guidance and solutions that empower you to take charge and achieve lasting financial independence.
Trust Built on Education, Not Hype
We don’t wave magic wands. Infinite banking is not a scam or a short-term financial strategy. Our system is built on education, helping you understand how to use the Infinite Banking System to become your own banker and protect your wealth for future generations.
The best place to start is by reading “Becoming Your Own Banker.” Then, dive into a free webinar to learn how Infinite Banking can complement your lifestyle and help you achieve your dreams.
When you’re ready to talk to an advisor, you can book your confidential call on our website, putting you one step closer to financial independence and confidence.
FAQs
Is Infinite Banking a good idea?
If you fit the criteria, Infinite Banking can be a great idea to build and secure your generational wealth. However, it might not be for you if you’re expecting fast returns or are not financially secure.
Is Infinite Banking a pyramid scheme?
No. The Infinite Banking Concept is a system, not a product. You pay for advisory services from licensed financial professionals, not through a pyramid or MLM-style model.
Why do some people say Infinite Banking is a scam?
Some claim Infinite Banking is a scam. In truth, it’s a financial system that helps you control your wealth by borrowing money from your whole-term life insurance policy while your money continues to grow within the policy. It does require a long-term commitment to achieve results, so many who expected a get-rich-quick scheme were disappointed.
Book a Call with an Advisor at Ascendant Financial
Contact Ascendant Financial today to review all of your financial options.
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