IBC Financing Modeler

Compare paying cash for a purchase vs. borrowing against your whole life policy. See the true cost of each approach — including the growth your cash value keeps earning while you borrow.

What is Infinite Banking?

Infinite Banking (IBC) is a strategy where you use a dividend-paying whole life insurance policy as your personal banking system. Instead of paying cash for major purchases, you borrow against your policy's cash value — so the cash value continues compounding as if you never touched it, while you repay the loan on your own schedule.

Why "pay yourself back" beats paying cash

When you pay cash, that money stops earning for you immediately. With IBC financing, your full cash value keeps growing at the policy's guaranteed + dividend rate. The loan interest you pay goes to the insurance company, but your net cost can be lower than the opportunity cost of depleting your cash position — especially over longer time horizons.

When does IBC financing win?

The math favors IBC when your policy growth rate is close to or exceeds the loan interest rate, and when the alternative use of your cash earns less than the policy. This modeler shows you the exact breakpoint for your numbers.

IBC Financing Modeler

What is Infinite Banking?

Why "pay yourself back" beats paying cash

When does IBC financing win?

Further reading