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5 Best Life Insurance Companies for Infinite Banking

best life insurance companies for infinite banking
Insurance Quotes 2 Day Team

Written By Doug Mitchell

Doug Mitchell, CLU holds a BA degree in Finance from Auburn University as well as having obtained a Chartered Life Underwriter (CLU) designation from The American College in Bryn Mahr, PA.  Doug has spent close to 30 years in the insurance and financial planning industry and has held licenses to sell securities, long-term care insurance, health.  Doug is also a financial blogger addressing the topics of life insurance, annuities and retirement income planning.

Holly Mitchell  &

Holly Mitchell’s background in life insurance insurance goes back to 1985 when she worked for her father who was a New York Life agent. Holly has a marketing degree from Auburn University and has had a life insurance license since 2008. In addition to advising life insurance for customers all around the country, Holly is our website fact checker.

Rob Pinner   &

Rob Pinner is the founder and CEO of Pinner Financial Services servicing all 50 states. Rob started his insurance career in 2002.

Louis LaBash

Results-driven and innovative life insurance professional with 30 plus years of life insurance industry sales and marketing experience. Recognized as a pioneer in the field, leveraging phone and internet channels to exceed personal sales of over $100 million during the first decade of the 21st century. Creator of a highly effective intuitive IUL life insurance sales software that facilitated the sale of millions of dollars of indexed universal policies by numerous life insurance agents. Proven track record as a Managing General Agent (MGA), Life Agent, IUL Life Insurance Sales Software developer, and leading-edge creator of insurance marketing tools, educational content, and delivery systems.

 6 minute read

You are interested in becoming your own banker using whole life insurance, but you don’t know where to start.  Choosing the best whole life company for infinite banking is important.   We have our opinions. Listed below are our top 5 infinite banking companies. 

Do you ever feel like your bank is holding you hostage? With traditional banks, you deal with their fees and pitiful interest rates. But what if there was a better way?  What if you could create your own bank using a whole life insurance policy? By properly designing the policy for cash value growth, you can use the cash equity in your policy to borrow against for future purchases.  You can basically say goodbye to banks and use your whole life policy to finance your life.

There is a proven approach to personalized banking known as the “Infinite Banking Concept,” which allows individuals to become their own bank. Economist Nelson Nash developed this approach and provides people with the ability to access their money at any time by borrowing from themselves and then repaying back into the account. Using this method gives you much more flexibility than traditional banking options. 

How do we determine the best company for Infinite Banking?

If you are considering the Infinite Banking concept so that you can finance major purchases with your own money, check out the following recommended guidelines to get your bank up and running:

  • A mutual insurance company that offers dividends and has a great reputation for paying dividends on whole life insurance policies.
  • One with very high ratings from all of the national rating companies.
  • One that offers policies that are “non-direct recognition” so that your dividends will not be impacted by policy loans.
  • One that allows you to receive dividends as paid-up additions, which creates additional “mini-policies” that will also earn interest and dividends. Doing so helps your bank receive funding sooner.
  • One where you can purchase a whole life policy with a 10-pay periodic premium so that your cash value account will grow quickly enough for you to borrow funds as soon as possible.
  • One that offers a “cash value” rider to your policy so that your designated beneficiaries will receive the death benefit PLUS the cash value of your life insurance policy.

Our Top 5 Insurance Companies for Infinite Banking

Now that you understand the Infinite Banking concept, it’s time to choose a whole life insurance company that will be best suited to meet your expectations in the future. Here are our top five go-to participating whole life companies:

Mutual Trust for Infinite Banking

Criteria Result
Mutual or Stock Company? Mutual
Dividend Payment Performance Level or increased since 1909
Loan Interest Rates 4% 
Financial Stability A.M. Best: A (Excellent)
Product Flexibility Multiple periodic payment plans
Direct or Non-Direct Recognition Direct Recognition
Rider Availability 10 riders to choose from

Mutual Trust offers a variety of whole life policies tailored to specific needs in the insurance market.  We value their ability to customize policies to use with infinite banking. Mutual Trust Horizon Value and Horizon Guarantee are premier choices for those seeking permanent coverage with a focus on cash value accumulation, offering guaranteed level premiums and a non-forfeiture benefit option. Mutual Trust’s whole life insurance policies cater to those looking for high early cash value growth.

Business uses may include Buy/sell funding, key person protection, split-dollar arrangements, executive bonus programs, and deferred compensation.

Mass Mutual for Infinite Banking

Criteria Result
Mutual or Stock Company? Mutual
Dividend Payment Performance 6% currently – 15 yr average of 7.14%
Loan Interest Rates 5% to 8%
Financial Stability A.M. Best A++ (Superior)
Product Flexibility 10, 20, age 65, and 100 pay
Direct or Non-Direct Recognition Direct and Non-Direct Recognition
Rider Availability 6 optional riders to choose from

MassMutual is one of the highest-rated life insurance companies in the United States. Its strong financial position and high customer satisfaction ratings indicate that it is positioned to continue to be a leader in the life insurance industry. MassMutual is highly regarded for its whole life insurance policies, thanks to robust financial stability, the potential for higher dividends than most of its competitors, and strong customer satisfaction. The company offers a variety of whole life options. Mass Mutual whole life policies can be designed to accommodate different financial goals and coverage needs.  Infinite banking requires policies to be designed for high early cash value.

National Life for Infinite Banking

Criteria Result
Mutual or Stock Company? Mutual
Dividend Payment Performance 5%  
Loan Interest Rates Calculated at the time of the loan
Financial Stability A.M. Best A+ (Superior)
Product Flexibility Whole Life, IUL and Term
Rider Availability 10 optional riders to choose from

National Life offers TotalSecure whole life that allows additional premiums to pay up portions of the policy. Low required premium, strong death benefit, high cash value guarantees helps National Life to be an infinite banking leader. National Life caters to those seeking both cash value accumulation and permanent coverage.

Ameritas for Infinite Banking

Criteria Result
Mutual or Stock Company? Mutual
Dividend Payment Performance 5% or more over the last 10 years
Loan Interest Rates 4.25% plus
Financial Stability A.M. Best A
Product Flexibility 10 pay, 20 pay, pay to age 65, and 100 pay
Direct or Non-Direct Recognition Direct Recognition
Rider Availability 6 optional riders to choose from

Ameritas Life Insurance offers a wide variety of policy options to choose from, all with different features and benefits. You can tailor your policy to fit your specific needs, and even add on additional riders to further customize your coverage.  Ameritas’s whole life insurance provides a secure financial foundation with permanent lifetime death benefit protection. Key features include a guaranteed death benefit that never decreases, guaranteed premiums, and a cash value that grows at a guaranteed interest rate plus dividends, offering a reliable safety net for policyholders.

Penn Mutual for Infinite Banking

Criteria Result
Mutual or Stock Company? Mutual
Dividend Payment Performance Level or increased for more than 10 years
Loan Interest Rates 5%
Financial Stability A.M. Best: A+ (Superior)
Product Flexibility Multiple periodic payment plans
Direct or Non-Direct Recognition Direct Recognition
Rider Availability 7 riders to choose from

Penn Mutual, a pillar in the life insurance industry for over 175 years, is celebrated for its A+ rating for financial stability and low complaint index. Their whole life insurance offerings, like Guaranteed Whole Life II, deliver lifelong coverage, a fixed death benefit up to age 121, and potential yearly dividends. Penn Mutual policies come with multiple rider options to tailor coverage to individual needs. Penn Mutual is set to payout $123 million to eligible policyholders with a dividend interest rate of 5.75%.

Infinite Banking Pros and Cons

Pros of Using the Infinite Banking Concept:

  • Tax Benefits: By structuring whole life insurance policies correctly, you can enjoy tax-free growth and potentially tax-free distributions
  • Guaranteed Return on Investment: Whole life insurance offers a guaranteed return and avoids market volatility, providing a stable investment.
  • Liquidity: The policy’s cash value can be borrowed at any time, offering liquidity and the ability to finance purchases without a bank being involved.
  • Continued Earnings: Your policy continues to earn interest and dividends even when you take out a loan against it.

Cons of Using the Infinite Banking Concept:

  • Complexity: The concept can be complex and usually requires an advisor’s guidance to structure properly.
  • Premium Commitment: Whole life policies come with consistent monthly or annual premium payments, which can be a significant financial commitment.
  • Time Commitment: Although you have access to cash values as early as the first year, you need time on your side to see significant cash value increases. It may take several years for the policy’s cash value to equal the paid premiums, limiting early banking use.

Infinite Banking Conclusion

All the life insurance companies listed above would be excellent choices to fund your Infinite Banking plan, but you will need guidance.  We are here to advise and properly design your perfect Infinite Banking Plan. 

Start by using the Infinite Banking Calculator on this page, or give us a call to learn more about you and what plan design will work the best. 

author avatar
Doug Mitchell, CLU Independant Advisor
Doug Mitchell, CLU holds a BA degree in Finance from Auburn University as well as having obtained a Chartered Life Underwriter (CLU) designation from The American College in Bryn Mahr, PA. Doug has spent almost 30 years in the life insurance industry and has also held licenses to sell securities, long-term care insurance and home and auto insurance. Doug is a Top of the Table Million Dollar Round Table member (MDRT).  MDRT is a global, independent association of the world's leading life insurance advisors.  For two years, Doug served as President of the Auburn Opelika Association of Financial Advisors and has been a member of the Million Dollar Round Table. He obtained Life Millionaire status at Horace Mann Insurance Company and was awarded the Life Agent of the Year Award. Later in his career with New York Life he was an Executive Council Member. Doug currently serves as President of Ogletree Financial, a managing general agency serving life insurance agents and clients in all parts of the United States. Today, Doug’s main focus is servicing 1000s of policyholders and growing the agency through the reach of  insurancequotes2day.com.