How It Actually Works

A simple letter — from one smart skeptic to another.

Hey — I know this all sounds a little different.

You’ve probably heard of “life insurance” as just a backup plan — something for your family when you’re gone. But that’s not what this is.

Infinite Banking is a strategy that uses a specific type of life insurance — high cash value, dividend-paying whole life — from mutual companies. These policies are engineered to maximize your cash value early, while still giving you a death benefit.

Here’s the kicker: when structured properly, these policies fall under IRS Tax Code 7702, which allows for tax-deferred growth and tax-free access to the money through policy loans.

Even better, many mutual companies practice non-direct recognition, which means they still pay you dividends on your full cash value — even when you borrow against it.

How’s that possible? The loan isn’t coming out of your account. It’s an advance on your death benefit. You’re using your policy as collateral, and the insurance company lends you the money at a fixed interest rate. You repay it on your terms — or not at all. They’ll just subtract the balance from your death benefit later.

And it’s all legal. Policy loans are protected under state insurance laws and contract law. No bank needed. No credit checks. No taxes. Just private capital you control.

This setup gives you the power to practice positive arbitrage — where your money grows in the policy while you also invest or use that same capital elsewhere. You get two uses of the same dollar.

I’m not sharing theory. I use this myself. I’ve set up my own banking system, flipped real estate with it, paid off high-interest debt, and built tax-free retirement income — all while my money kept compounding in the background.

I learned this through mentors and experts who use it daily — and now I’m helping others unlock the same financial freedom.

If you want a deeper dive into how it all works — with real-life examples — download my book: Unlock Financial Freedom: The Power of Infinite Banking.

Or take the next step — and book a strategy call to build your private bank today.

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🔍 Definitions

Non-Direct Recognition: A policy feature where the insurance company continues to credit full dividends on your entire cash value — even when a loan is taken — ensuring uninterrupted growth.

Positive Arbitrage: The financial advantage gained when your money continues earning more inside the policy than the interest charged on the loan borrowed against it.