How to Buy the Best Infinite Banking Policy

Are you shopping for the best Infinite Banking policy, but want to first make sure you have the correct policy design with a good life insurance company and a team you can trust? https://www.youtube.com/watch?v=aUwFuc7NCec Here’s the first thing you need to know: there’s no such thing as an “Infinite Banking Policy.” We only use that phrase here because it’s commonly searched, and we want to meet you where you are. But the truth is, Infinite Banking is not a product—it’s a strategy.  The vehicle we use is properly structured whole life insurance with a mutual company. But it’s not the policy alone that creates results. It’s how the design, funding, and use of that policy align with your larger financial strategy and your legacy goals. That’s where most people get off track—and where working with a like-minded team becomes essential. In this episode, we dive deep into the infinite banking concept and discuss the importance of choosing the right mutual insurance company and working with a like-minded advisor or agent team. Join us as we share our insights and experiences to help you better understand and implement this powerful financial strategy in your own life. If you want to say goodbye to second-guessing and regret, and make Infinite Banking decisions with certainty and confidence, tune in today! Building Confidence Through EducationHow to Choose the Best Insurance Company1. Choose a Mutual Company2. Look at Financial Ratings3. Do They Have a History of Dividends?4. Customer ServiceBest Whole Life Insurance Companies for Infinite BankingHow to Choose the Best Producer/TeamThe Five Tenets of IBCHow Does Your Advisor Support You? How to Buy the Best Infinite Banking Policy1. Choose Whole Life Insurance2. Paid-Up Additions3. Apply Dividends to Cash ValueCommon Mistakes to Avoid When Choosing a PolicyReal-Life Examples: The Living Proof of Policy DesignUsing Whole Life Insurance to Build Wealth and Business FreedomBook A Strategy Call Building Confidence Through Education Finances can be a tough space to navigate because money is deeply personal, and everyone has different opinions. That’s why we value providing education – because we want to give people the tools they need to build confidence and make their own decisions about money.  Confidence allows you to take action, build trust, and create a positive cycle. You learn more, become more confident, take more action, and build more trust. This simple, small shift allows you to be at the helm of your financial choices, rather than shifting responsibility off your plate completely. How to Choose the Best Insurance Company If you’re interested in infinite banking, based on our material or something you’ve heard elsewhere, you may have questions on how to do it “right.” While this can vary depending on your personal money goals, there are some general rules of thumb to follow when you buy a life insurance policy for IBC purposes. Let’s go over them together.  1. Choose a Mutual Company A mutual company means that the insurance company is owned by the policyholders. In order to benefit from dividends, this is the type of company you want to work with. As a partial owner, you get to participate in all profits. While not guaranteed, mutual companies tend to run a tight ship and make very conservative long-term decisions. You can expect them to profit.  The other option is to choose a stock company, which is beholden to shareholders. These shareholders may not even have a policy with the insurance company. This can drive stock companies to make riskier, short-term decisions that aren’t always in the best interest of policyholders. You also don’t get those dividends if they do turn out okay.  2. Look at Financial Ratings In addition to being a mutual company, you also want to work with a company that has a solid financial history. A good track record suggests that they know how to manage risks long-term and can continue to do so for 30+ more years.  You can check a company’s financial rating in any of the major rating services: Standard & Poor’s, AM Best, Fitch, and Moody’s. A company with at least a 90% rating is a good company to work with.  3. Do They Have a History of Dividends? Another benchmark of a good mutual insurance company is its history of paying life insurance dividends. This indicates that they have good long-term vision and are capable of turning a profit even in dire economic landscapes. Many mutual companies have paid dividends every year for the last hundred years, which means they turned a profit during major wars, recessions, depressions, and the housing crisis.  This is a great indication of good stewardship and consideration for policyholders. So be sure to choose a company that has a solid record of profit.  In the same vein, it’s worth taking note of how close companies are to hitting their declared dividend. Occasionally, companies overstate what they think the dividend will be and end up being off the mark. It’s not necessarily a deal-breaker, yet something to be aware of as you look for companies.  4. Customer Service What kind of customer service does the insurance company provide? How responsive are the insurance companies? This is information your producer or agent will know well. Each company operates differently and has its own way of doing things. The best life insurance companies for infinite banking may even be faster at distributing funds than others. If you’re going to be using your policy over your whole lifetime, choosing a company with good service will benefit you.  It’s also important to note that while you can execute an IBC strategy with any mutual company, not every insurance company supports the idea or understands it. Your producer can also help you identify which companies understand what you’re trying to do.  Best Whole Life Insurance Companies for Infinite Banking Your legacy is not the caboose of your financial life. It's the engine. Selecting the best infinite banking policy isn't a decision to leave buoyed by happenstance. Choosing the right whole life insurance policy to implement the Infinite Banking Concept isn’t about chasing a top 5 list. It’s about discernment—and alignment. You may notice we’re not naming specific companies here. That’s intentional. Because this isn’t about which company we think is best. It’s about helping you find the company that best fits your values, vision, and goals. We’ve included a full section in this article that walks you through how to evaluate a company—but naming names here would shortcut that process, and potentially mislead. The truth is: there are several strong mutual companies that support Infinite Banking with excellent policy design, financial stability, and client service. But which one is right for you depends on your cash flow, your timeline, your use of capital, and the specific features needed to implement the strategy well. What matters most is working with a company that: Embraces the Infinite Banking Concept—not just sells whole life Has a long-term stewardship mindset Offers consistent, responsive, relationship-centered service And is a true partner for your family’s multigenerational plan When it comes to building legacy, we don’t take shortcuts. And that includes helping you make decisions based on wisdom—not popularity. Remember, the best whole life insurance policy for infinite banking isn't determined by a single metric. It's about finding the financial partner that aligns with your family's values and vision - one that will stand as faithfully with your grandchildren as they do with you today. How to Choose the Best Producer/Team After you have an idea of what company or companies you’d like to work with, you’ll want to choose an agent or producer to help you set up your policy. In an ideal world, this is a lifelong relationship, so you want to choose someone you trust and get along with.  If you want to use the Infinite Banking strategy, proceed with caution when you see companies using other terminology. You’ll see various spin-offs of IBC, which are little more than marketing tactics. However, not every one of these companies is going to be advocating for or following the 5 Tenets of IBC. Let’s go over what those tenets are. The Five Tenets of IBC [15:20] “Number one, Nelson always said [to] think long-term. And when you link long term, you’re going to make better decisions for you and your family, instead of trying to make short term decisions.” Number two, don’t be afraid to capitalize. Each and every person has a need for capital, so you should be looking for ways to solve that need. And when you have an opportunity, don’t be afraid to use your capital.  The third tenet is to be a good steward of your policy. If you take a loan, pay it back in full. While you can get away without doing so, you’re only hurting your own bottom line.  Tenet four is not to do business with banks. Now, this can take some considerable time, because of our current economy. But eventually, you should have a banking system that allows you to finance your own endeavors.  Finally, you’ve got to re-think your thinking. Don’t accept everything you know as fact, and be willing to learn and grow. In particular, this applies to what you know about whole life insurance, as many people misunderstand it.  How Does Your Advisor Support You?  When choosing an advisor, if you want to do infinite banking, the best thing you can do is find someone who has gone through the Nelson Nash training using the Practitioner Finder. These are going to be advisors who are well-versed in IBC and have the desire to keep growing in their practice and their offerings.  In addition to the support you’ll get from an IBC-trained advisor, it’s also important to ask them about their practices. Will the advisor do annual reviews? Can you count on them,