Getting Started With Infinite Banking

Thanks for reading Getting Started With Infinite Banking! We are very excited to help you begin building your financial foundation so you can achieve financial freedom, die without debt, and leave a legacy.

As always, our educational resources are designed to give you the tools needed to achieve a strong and stable financial foundation. The information found in this blog today is basic knowledge for anyone wanting to build wealth successfully, safely, and consistently while using a Specially Designed, Dividend-Paying, Whole Life Insurance policy for Infinite Banking purposes.

Before we jump head-first into Infinite Banking, it’s important to understand the foundation that we will be using to build your wealth. Having a solid understanding of Dividend-Paying, Whole Life Insurance will give you more control, liquidity, use, and equity of your money and will increase your success-rate for building wealth that’s designed to last for generations.




Having an Infinite Banking policy is having life insurance. And having life insurance is all about financial stewardship. The foundation we use for Infinite Banking is Participating Whole Life Insurance, also called Dividend-Paying Whole Life Insurance. This is a specific type of insurance that can give people, like you and me, guaranteed long-term financial value from its death benefit.

The death benefit is the first, and most obvious, reason people buy life insurance as it provides:

  • Immediate estate preservation
  • Inter-generational wealth transfers (also called family succession planning)
  • Long-term repayment plan for cash values
  • Business protection plans (for corporately owned life insurance)
  • Long-term payment plan to Capital Dividend Account (for corporately owned life insurance)

When you have this type of asset in place you can feel good knowing the above listed needs for insurance are covered. This has given me a great amount of peace, clarity, and solidity in my own financial plan and life.




Now keep in mind this type of insurance is not an investment although we do see growth inside the policy in the form of guaranteed cash values.

While cash values are not in addition to the death benefit, they do contribute to it and will be equal to your total benefit amount at the end of your contract (typically age 100). A good way to understand cash values is to think of them like savings. Because death is a guaranteed event, the insurance company reduces their liability or cost for the death benefit by saving money specifically for it and on our behalf.

Over time and by popular demand, these cash values have become accessible to the policy owner as policy loans to be used when needed or desired. This is what I like to call the living benefit:

  • Used as an alternative financing method to banks or other third- party lending institution, friends, family, and savings
  • Used as supplemental retirement income
  • Interest may increase Actual Cost Basis if used for personal purposes
  • Interest may be deducted if used for business or investment purposes
  • If there are any outstanding policy loans at time of death, they will be paid off using the death benefit

Understanding cash values is key when building your financial foundation with Dividend-Paying Whole Life Insurance for Infinite Banking purposes.




Ahh. The tax-exempt life insurance policy. Without this status, permanent life insurance would be taxed as per the income tax rules of the time. If the status remains in place, we see:

  • Cash values grown on a tax-advantaged basis inside the policy
  • Death benefit is paid out on a tax-free basis
  • Policy loans may issue a tax-slip if the amount borrowed is over and above the amount of money paid in premiums or additional deposits where applicable. If this happens, any amount paid in tax may be deducted once it’s been repaid into the policy

Now you know the basics of a Specially Designed, Dividend-Paying, Whole Life Insurance policy for Infinite Banking purposes. Having a properly designed life insurance policy and plan could literally mean the difference of thousands, hundred-thousands, or possibly millions of dollars saved throughout your life and afterwards through the death benefit, a lifetime of savings in interest and opportunity cost, and taxes.

This is the foundation for building inter-generational wealth that is safe, uninterrupted, and tax-advantaged. You can only learn more from here as you become part of The Wise Banking community.

If you want to know exactly how Infinite Banking can work for you can request your Discovery here.

You can also follow us on Instagram for updated content, financial tips, and tutorials @thewisebankercanada

All the best in your financial journey,


Ashley Lalonde