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Infinite Banking, Fiction Or Fact?

Todays Date: January 20, 2019

This is an actual case study of someone who put the Infinite Banking Concept into practice as described by R. Nelson Nash in his book Becoming Your Own Banker.

A 45 year old male

He put $30,000 in the form of an annual premium into a mutual participating whole life insurance policy promising $567,000 to his family in the event of his death.

In two weeks he took a $12,000 loan from his policy out of the $22,000 of available cash values.

He used this $12,000 to take care of a bill to the tax department. The man repaid this loan on a repayment schedule.

Paying $390 per month, for 36 months, he accumulated $14,040 plus the $10,000 of original cash value left over from the first policy loan.

Over a 36 month time frame he paid two additional annual premiums of $30,000.

After paying the second premium of $30,000 his cash values were increased by $24,000.

His third paid premium increased his cash values by yet another $34,500

Now he has $82,540 in cash values besides the $801,000 of face value. At this time, he has only paid $90,000 of premiums, so really his cost has simply been $208 per month or $7,460 in all.

So let us compare this to a term policy with $800,000 of face value. For this kind of face value he would have paid $323 every month for a total of $11,628 over this period of time.

But it gets even better because he put the $10,000 of cash value left in the policy after the first policy loan to work also.

He took this $10,000 and utilized it along with an extra $20,000 that he had in cash to buy a new automobile. The repayment schedule on this loan amounted to monthly payment of $667.33. So after this 36 month time frame when the guy is now 48 he owns an additional $24,024 along with the $82,540 which totals to $106,564. This means he has $16,564 more than in what he put into this process in premiums!


This man has $16,564 more than he paid in premiums. This is money he would not have had if he had not followed The Infinite Banking Concept.

Plus over $801,000 of life insurance that has really cost him nothing.

Also, he took care of a $12,000 bill to the tax department and purchased a $30,000 automobile.

And, in just two more years, he will have accumulated another $16,016 simply by maintaining the repayment schedule he has already set up on the automobile.

Because he has practiced Becoming Your Own Banker through the use of the Infinite Banking Concept, his death benefit has climbed from $801,000 to $812,424.

Because he learned to control the banking equation, he has received, tax free, all the profits which would have gone to the banking and financial institutions.

This case study demonstrates firsthand that the “return of your money is always more important than the rate of return on your money.”

The Infinite Banking Concept is indeed fact and not fiction.

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