--- title: The Top 10 Benefits of Infinite Banking description: If you have never thought of your life insurance policy as a business opportunity, you might not know about the benefits of infinite banking. image: https://www.themcgriffalliance.com/hubfs/shutterstock_633623114.jpg --- [![McGriffAlliance_logo.png](https://www.themcgriffalliance.com/hs-fs/hubfs/images/home_page/McGriffAlliance_logo.png?width=266&name=McGriffAlliance_logo.png "McGriffAlliance_logo.png")](https://www.themcgriffalliance.com) ![bg-img11.jpg](https://www.themcgriffalliance.com/hs-fs/hubfs/images/contact_us/contactus_header2.jpg?width=1500&name=contactus_header2.jpg "bg-img11.jpg") # [The Top 10 Benefits of Infinite Banking](https://www.themcgriffalliance.com/blog/the-top-10-benefits-of-infinite-banking) ![Joel McGriff](https://www.themcgriffalliance.com/hubfs/images/about_us/joel.png) By [Joel McGriff](https://www.themcgriffalliance.com/blog/author/joel-mcgriff) - May 24, 2017 - [**](https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fwww.themcgriffalliance.com%2Fblog%2Fthe-top-10-benefits-of-infinite-banking&t=The%20Top%2010%20Benefits%20of%20Infinite%20Banking) - [**](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.themcgriffalliance.com%2Fblog%2Fthe-top-10-benefits-of-infinite-banking&text=:%20If%20you%20have%20never%20thought%20of%20your%20life%20insurance%20policy%20as%20a%20business%20opportunity,%20you%20might%20not%20know%20about%20the%20benefits%20of%20infinite%20banking.) - [**](http://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.themcgriffalliance.com%2Fblog%2Fthe-top-10-benefits-of-infinite-banking&title=The%20Top%2010%20Benefits%20of%20Infinite%20Banking&summary=If%20you%20have%20never%20thought%20of%20your%20life%20insurance%20policy%20as%20a%20business%20opportunity,%20you%20might%20not%20know%20about%20the%20benefits%20of%20infinite%20banking.) - [**](https://plus.google.com/share?url=https%3A%2F%2Fwww.themcgriffalliance.com%2Fblog%2Fthe-top-10-benefits-of-infinite-banking) ![shutterstock_633623114.jpg](https://www.themcgriffalliance.com/hs-fs/hubfs/shutterstock_633623114.jpg?width=320&name=shutterstock_633623114.jpg)"Every time a person buys a [life insurance policy](https://www.themcgriffalliance.com/blog/how-liquid-is-the-life-insurance-industry), he is starting a business from scratch." These are the words of Nelson Nash, financial adviser, author and the father of the infinite banking concept. And if you have never thought of your life insurance policy as a business opportunity, you might not know about the benefits of infinite banking, which is also known as being your own bank. Infinite banking has been called the most efficient way of using your own money to build your net worth, live a prosperous life and pass your wealth on to your children. It's the process of using the cash value of your life insurance policy for tax-free, lower-interest loans. When you practice infinite banking, you are cutting banks, brokers and other lenders out of the equation in order to finance daily living, retirement, business opportunities or other lucrative investments, such as real estate. You are essentially running your own business--the business of your life. And it comes with an array of benefits. Here's a look at the top 10: **1) Tax benefits.** Infinite banking offers a guaranteed death benefit that is tax free. It also offers tax-deferred growth, tax-free policy loans and tax-free withdrawals. These are benefits you typically don't get with other loans. **2. Liquidity. **The cash value of your policy is liquid. You are allowed to access it whenever you need it, for any reason you see fit. And you don't have to qualify in order to use your money. **3. Dividends.** There is a good chance your policy is being managed by a mutual company. When this is the case, there is also a good chance that your mutual company pays dividends. **4. Asset protection.** Many states have statutes in place that protect money in life insurance policies. This can protect your funds from the reach of creditors. **5. Growth.** Even when you borrow against the cash value of your policy, the policy continues to accrue interest at a rate of around 4 percent a year. If the policy also pays dividends, you may be able to add another 2 to 3 percent to that growth. **6. Equity.** Placing your money into a life insurance policy leads to equity because the cash you are storing grows thanks to true compound interest. It's considered "true" because you are never touching the actual principle. **7. Control. **Unlike other types of loans, which require you to use the money for a specific reason, you can use the loans you take out against your policy for anything--from business to personal needs. **8. Cash flow.** You never know when an opportunity or an emergency is going to arise. That's why it's important to have access to cash flow, which allows you to react quickly and decisively when investment opportunities or emergencies come up. **9. You can be your own banker--and help others.** Infinite banking isn't just about being your own banker. It also allows you to lend money to others--and charge interest. This allows you to recapture the money you have borrowed from your policy, plus interest. This is a great strategy for building and sustaining wealth. **10. Freedom.** When you are no longer beholden to banks, you are truly free to make your own decisions. This is one of the benefits of infinite banking that just might be priceless. Even if you have never thought of yourself as someone who would ever run a business, exploring infinite banking--and treating your finances as if it were a business--can be a wise idea. Connect with us today to learn more about infinite banking. [![New Call-to-action](https://no-cache.hubspot.com/cta/default/1859948/0c8cfae5-a609-42e6-a679-f7ff1eae502d.png)](https://cta-redirect.hubspot.com/cta/redirect/1859948/0c8cfae5-a609-42e6-a679-f7ff1eae502d) ## Leave a comment ![bg-img14.jpg](https://www.themcgriffalliance.com/hs-fs/hubfs/images/blog_page/blog-subscribe.jpg?width=750&name=blog-subscribe.jpg "bg-img14.jpg") ## Subscribe to Our Blog Sign up to keep up with our latest updates. ![Joel McGriff](https://www.themcgriffalliance.com/hubfs/images/about_us/joel.png) Written by [Joel McGriff](https://www.themcgriffalliance.com/blog/author/joel-mcgriff) Joel began his financial services career with the Principal Financial Group in Minneapolis. In 1985, Joel moved to Birmingham to build a practice around the many relationships he had developed while growing up in North Alabama. 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