Jayson Lowe explains how the Infinite Banking Concept lets you become your own banker through a life insurance company co-ownership. Dividend-paying whole life policies build cash value that outpaces inflation while keeping premiums level, and co-ownership prevents the insurer from inflating its money supply like commercial banks do.
How does the process of becoming your own banker, the infinite banking concept, help to combat inflation? It's simple. There's two components to this. One, from a process standpoint, when you become a co owner of the life insurance company, the life insurance company cannot inflate their money pool, unlike commercial banks. Anytime you borrow money from a commercial bank, you're contributing to inflation. So the real question is, do you want to be a part of the problem or a part of the solution? The second component is the tool that we use to implement the process, which is a dividend paying, participating whole life policy or a system of policies. These contracts, when properly designed, will beat the pants off of inflation because you're paying a level premium that can never go up. But your cash value, your pool of financial value continues rising every single day, uninterrupted for the remainder of your lifetime. And so this not only combats inflation, it beats the pants off of inflation.
