Financial Education Solutions Group
Nelson Nash is credited with inventing the concept of infinite banking. The notion of infinite banking refers to how a person becomes a banker. In his book, “Becoming your banker,” Nash discusses the use of life-long insurance policies that contain dividends and how ownership allows people to determine cash flow in their lives rather than being reliant on banks or lenders by borrowing for themselves.
Because life insurance plans payout consistently (as long as the policyholder continues to pay their premiums), a person may continue to borrow against their life insurance policies. When the insured person dies, the insurance policy payment will be given to the beneficiary.
How to use IBC concepts to build your own bank: