Endurys Wealth Solutions Inc.

Understanding the Infinite Banking Concept (IBC) begins with clarifying what it is not. IBC is not:

• An investment (it is a process)
• A get-rich-quick scheme (it requires long-term thinking)
• About creating a traditional bank (it’s about becoming the banker, not the bank)

Now, let’s explore what IBC truly is. IBC focuses on controlling your cash flow by performing the role of a banker. By doing so, you control the financial environment and can recapture the interest paid while financing life’s necessities. Essentially, IBC uses a participating whole life insurance policy to put your cash to work, allowing you to borrow against it for expenses you already have. This process is compared with the conventional banking system below.

The vehicle for this process is Participating Whole Life Insurance. Why use a life insurance policy? Because, to our knowledge, no other financial tool can match its efficiency for storing wealth and financing needs. A participating whole life policy is a standard life insurance product, specially designed to maximize cash value for IBC. Note that you cannot directly request an “IBC policy” from an insurance carrier, as it is not a product sold by them.

Policies are funded through premium payments. In an IBC-designed whole life policy, a portion of the premium funds the base death benefit, while another portion purchases paid-up additions. Paid-up additions are fully funded mini-policies requiring no further funding and come with a set death benefit added to the base amount. Premiums for paid-up additions compound and grow like the base premium within the policy.

Each premium payment includes a portion set aside as cash value, essentially a “savings account” within the policy. However, this cash value is not directly accessible as your money; instead, you borrow against it. According to the insurance contract, your cash value must equal your death benefit at age 100, ensuring guaranteed daily growth. While your cash value grows tax-free, you borrow against your policy, using the death benefit as collateral, to finance your needs. Repaying the loan makes every dollar immediately reusable, while your original capital continues to grow uninterrupted. The true power of IBC lies in understanding and performing the role of your own banker.

Let’s delve deeper into controlling the financial environment. In R. Nelson Nash’s book “Becoming Your Own Banker,” he outlines four characters in the financial play: the depositor, the borrower, the banker, and the bank owner. In the conventional banking system, most people act as depositors and borrowers. Let’s compare the conventional system with IBC.

Conventional Banking System

In the conventional system, the banker’s function is controlled by someone else, not the depositor. This control is crucial because the banker decides who qualifies for loans and the repayment terms. The bank owner reaps the rewards from the interest earned. Depositors relinquish control of their money, letting someone else perform the banker’s role for the bank owner’s benefit.

Infinite Banking Concept

In IBC, you assume all four roles: depositor, borrower, banker, and owner. You pay premiums to capitalize your system, borrow against your capital using the death benefit as collateral, control the banking function, and reap rewards through dividends. As the banker, you decide loan amounts (up to 90% of available cash value) and repayment schedules, with no credit checks or external approvals. You own the policy and set the terms, making you the banker. These terms are contractually guaranteed by the life insurance policy.

Ready to Take Control of Your Financial Future?

Discover how the Infinite Banking Concept can empower you to become your own banker and achieve financial freedom. Contact Endurys Wealth Solutions Inc. today for a personalized consultation and start your journey towards financial independence.