If you’ve ever heard of using your whole life insurance policy (whole life as opposed to term life insurance) like a savings account to borrow against for personal use, then you’ve heard of the Infinite Banking Concept (IBC) - whether you realized it or not.
The idea behind it advocates becoming your own bank by leveraging your whole life policy for easy access to cash while sidestepping high-interest payments from lenders in the form of loans.
The main point of the IBC is that you lose money to creditors on the various loans you take out over your life. Things like:MortgagesCar loansCredit cardsCollege loansAll of the above examples will deplete your wealth over your lifetime in the form of interest payments.
What the IBC advocates is by aggressively saving your money in whole life insurance, you could use that money to fund big-ticket items like a house or college tuition with your policy and not lose money to interest payments. It’s like an interest-free loan. In essence ~ Be your own bank.