F.A.Q

You fund a high-cash-value whole life policy, borrow against the cash value when needed, and repay the loan on your terms—essentially using the policy as your own bank. 

Whole life insurance offers guaranteed growth, tax advantages, and liquidity while allowing you to borrow against your cash value without disrupting its compounding growth. Thats right, your money is growing inside the policy tax free AND you are using it for opportunities AND it provides an ever-increasing death benefit AND a tax-free retirement income. 

Traditional bank loans require credit checks, income verification, personal guarantees, and extensive paperwork—all while giving the bank control over your access to capital. With Infinite Banking, you can borrow against your policy’s cash value at any time, with no approval process, no credit check, and no restrictions on use. Additionally, policy loans allow for flexible repayment terms, and your cash value continues compounding even when borrowed against—unlike traditional loans, which interrupt growth. You are in control; you are the only one who has to approve the loan. 

Yes, but remember you are not borrowing your money – your money is staying inside the policy, continuing to grow.  You are borrowing the Insurance Company's money; and the interest is paid back to the whole life fund (that you are part owner of).  Additionally, if policy loans are used for investment or business purposes, the interest may be tax-deductible (consult with your tax advisor to confirm). 

There are no mandatory repayment terms for policy loans—you control how, when and if you repay. Unpaid loans will be deducted from your death benefit. If you pass away with an outstanding loan, the insurance company deducts the balance from the death benefit before paying the remainder of the death benefit to your beneficiaries tax free. 

This is one of the greatest strategies business owners have. Business owners can use corporate dollars to buy corporate-owned whole life policies to store cash reserves, access tax-free loans for business expenses and business opportunities, and build a financial safety net. These policies can be funded with tax-efficient corporate dollars, allowing businesses to grow wealth inside the corporation while minimizing taxes. They also provide liquidity without relying on traditional lenders and can serve as a succession planning tool through their death benefit and a tax-free retirement income for the business owner. 

Real estate investors can borrow against their policy's cash value to fund down payments, cover renovation costs, or acquire new properties—without depending on banks or hard money lenders.  Unlike traditional lenders, there is no timely and tedious application process required in order to qualify/be approved for a loan against your cash value. Additionally, policy loans don't appear on credit reports, so real estate investors can use them to secure financing without affecting their debt-to-income ratio or borrowing capacity. 

Corporate-owned policies can be structured to provide tax-free distributions in retirement, offering business owners an alternative to traditional RRSPs and other retirement accounts—without contribution limits or early withdrawal penalties. In the early years they can use it for excess cash, emergencies, and opportunities. 

Because your cash value is guaranteed never to go down in value, is liquid and accessible, you can rely on it during economic downturns, market crashes, or personal financial hardships—giving you control over your money when you need it most. Unlike traditional investments, your policy provides guaranteed growth, regardless of market fluctuations and loans are guaranteed. 

No! It is a phenomenal financial strategy that uses properly structured whole life insurance policies from reputable insurance companies – Canadians have been using it for over 150 years. The strategy is based on principles of cash flow, liquidity, and financial independence, allowing individuals to become their own source of financing. That said, it is imperative to work with a firm specializing in this concept to ensure it is done properly.  Unfortunately, some advisors, who are not experts still try to use this concept to their clients' detriment. 

Depending on the policy, you may have enough cash value to cover premiums through automatic premium loans, or you could reduce the policy’s benefits while keeping it in force. Properly structured policies ensure long-term flexibility. It is important to work with the right team of advisors, so you understand how to build maximum flexibility in your system to deal with the unexpected. 

Absolutely! It’s an incredible strategy for retirement planning. You can access the funds through tax-free policy loans, creating a highly tax-efficient income stream in retirement. 

Unlike traditional retirement accounts, there are no government-imposed contribution limits or mandatory withdrawal rules — giving you full control over how and when you use the funds. Since the income is tax-free, it won’t affect government benefits like OAS, and the tax-free death benefit can be used to repay any outstanding loans, ensuring your legacy stays intact. 

Dividends — which have been paid every year for over 100 years — are paid out annually and taken as a paid up addition so they go back into policy to grow cash values and death benefit. All of this growth occurs tax-free within the policy, allowing your wealth to compound efficiently. 

As well, once a dividend is paid, it becomes vested, meaning it’s permanently locked into your policy and cannot be taken back. This guarantees your current cash value and provides a stable foundation for continued growth. 

IBC policies earn guaranteed growth and potential dividends while offering tax free growth and uninterrupted compound growth, unlike savings accounts with low interest rates and taxable gains. Additionally, you can save AND still access loans for opportunities without reducing your growth.  It's like multiplying money! 

There is a lot of information from the US on this concept and the strategy works very similar in Canada with minor differences and one big difference. Since Canada typically has higher taxes, we think it works even better in Canada. 

Work with an expert to structure a policy correctly and align it with your financial goals. There are very few firms that specialize in this concept.  It’s essential to choose the right insurance company, structure the policy for maximum cash value, and develop a strategy that complements your overall wealth plan. 

Yes! Infinite Banking allows you to build a generational wealth strategy. Parents and business owners can structure policies so that cash values and death benefits pass to heirs tax-free. You can also set up policies for children and grandchildren, giving them a financial head start with access to tax-advantaged capital. 

Properly structured whole life policies offer tax-advantaged growth, meaning your cash value accumulates without being taxed annually. In addition, policy loans are not considered taxable income, making them an effective tool for managing cash flow while minimizing tax liabilities. Retirement income can be structured tax free if done properly. And finally, death benefits are also paid out tax-free to beneficiaries, making Infinite Banking a powerful estate planning strategy. 

Infinite Banking is not widely promoted by traditional financial institutions because banks profit from lending money to you, not the other way around. They want to be in control of your money.  Additionally, most financial advisors focus on conventional retirement plans (RRSPs, TFSAs, etc.), rather than strategies that provide both liquidity and tax-free growth. Cash value whole life has been around and used successfully in Canada since 1846.

Yes! You can use tax efficient corporate dollars to fund the policies. 

It grows tax free; you can access it tax free, and when you die its tax free, and it puts you in control – no more volatility – it goes up in value – guaranteed! 

The possibilities are “Infinite”.  Business growth, acquisition, equipment purchase, real estate and payroll just to name a few.  You are in control and you can use it for whatever you decide is important – like your retirement!