The Only Insurance That Actually Works for Infinite Banking

Everyone's talking about Infinite Banking — but 90% of people are building it on sand. 🏦 In this episode, Josh Waxman breaks down the one product that actually makes Infinite Banking work, and why term, IUL, and VUL quietly sink your financial foundation.

If someone told you that you can "become your own banker" with an indexed universal life policy, consider this your wake-up call. 🚨
In this episode, Josh covers:

✅ Why whole life insurance is the bedrock of Infinite Banking (and term, IUL, and VUL aren't)
✅ The renting-vs-owning trap that makes term insurance useless for IBC
✅ What Nelson Nash, the founder of IBC, actually said about universal life
✅ The hidden costs that can make an IUL blow up on you
✅ Why real stock-market returns are closer to 3–4% than the 8% you were promised
✅ A full $1M whole life breakdown — how $810K can go to work for you while your cash value keeps compounding
✅ Why Fortune 500 CEOs, banks, and families like the Rockefellers bank on whole life
Infinite Banking is a process — not a product. Take off your consumer hat, put on your banker hat. 🎩

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🚀 Join the BYOB (Become Your Own Banker) program: https://ebook.myinfinitecapital.com/byob

🌐 Free resources: https://www.myinfinitecapital.com/

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#InfiniteBanking #WholeLifeInsurance #BecomeYourOwnBanker #IBC #IULvsWholeLife #FinancialFreedom #CashValue #WealthBuilding #InfiniteCapital #GenerationalWealth #FinancialEducation #MiamiFinancialEducator

Transcript

SPEAKER_00 0:00

Infinite banking, infinite banking, infinite banking. Everyone's talking about it, but 90% of people are doing it all wrong. You don't use an index universal life policy. You don't use a variable universal life policy. You don't use term. You have to use whole life insurance. And if anybody else is doing it without whole life insurance, they're doing it all wrong. And you're risking building your financial freedom on sand. Let me show you why. Proof building, then you need to make sure that your foundation for it is sound. And the only sound financial product out there in the world that actually has the whole intricacies of whole life insurance allows you to use it for becoming your own banker. Think of it like a skyscraper, as I'm saying. You can't build 50 stories on a beach. You need the bedrock, and whole life insurance is the bedrock. Not term, not IUL, not VUL, not any other type of product, but whole life insurance. Here's the problem with term insurance. Term is basic. It's cheap, it's easy. You're trading a dollar of premium for X dollars of death benefit. But here's the catch. There's no cash value. And so you can't borrow against a term policy. You can't utilize it for anything regarding infinite banking. You have to only use term insurance for the purpose of death benefit. Now, if all you want is temporary death benefit and you understand that 98% of all term policies go in the trash, meaning that they expire before they're paid out, then that's fine. Some people need some extra temporary insurance, and some examples of that are if you want some extra insurance while your kids are young, some extra insurance while you're owning a business with somebody. I see a lot of times business owners will be required to have term insurance for the bank to give them a bank loan for a collateral. These are all fine. But think of term insurance as renting a home. If you're renting a home, you're building up no equity, and if you leave that home, all that money just went to the landlord. The same thing happens with the landlord being the insurance company with a term policy and it's all gone. Whole life insurance is guaranteed. Infinite banking requires ownership. Just like buying a home, infinite banking allows you to be able to build a bank that has cash value. The private banking system that we're talking about is built on the platform of whole life insurance. That is the product. But the process, the process of putting your money into a policy, borrowing against it, not from it, not taking your money out, but borrowing against it with your cash value as collateral, that is the foundation of what infinite banking is all about. Now let's talk about IULs, indexed universal life insurance. The flashy one. It sounds sexy, it looks sexy. Your agent's gonna tell you you get all the upside with no downside. And hey, I sold 112 IULs my first year and a half in the insurance business until I really understood the difference. And the reality is that you cannot and should not be doing infinite banking with IULs. Because Nelson Nash, who's the founder of the infinite banking concept himself, says that IULs are any universal life policy, IUL, VUL, or traditional UL, is nothing more than one-year term insurance with a side fund of an interest-bearing account. It was an attempt to unbundle the life insurance element and the savings element of a whole life policy, which is something that cannot and should not be done if you truly understand the mechanics of life insurance. The reality is that brokerage firms like EF Hutton in the eight in the 1980s brought out universal life policy so that they can get into the insurance game and start showing something sexier. And the example that I always give is that IULs are like your sexy ex-girlfriend. They look good on the outside, but they're toxic on the inside. Whereas a whole life insurance policy is the woman that you want to marry for the rest of your life. The IUL is gonna blow up on you one day, and the whole life policy is not. And the reason that this is is because the flexibility that the IUL offers to you also comes at a cost. And yes, you can move the policy between the minimum and the maximum or the guideline as they call it, but the other aspects of the policy can also move. The cost of insurance rises every single year. The company controls the cap rate, the company controls the participation rate, there's spreads that are involved, and all the internal expenses are all subject to the economy. And you know, as I know, that in the last 20 years we've had the Great Recession, we've had COVID, and now we have other situations that will come in the future. And the reality is that if the economy goes bad, the life insurance company reserves the right to change all of the expense charges in an IUL contract. Another example I like to give is like looking at two cars that look the same on the outside, but if you lift up the hood of one of them, this one has a broken busted engine that's only gonna last you another 10,000 miles, and this one is like a Toyota where it's gonna last you hundreds of thousands of miles. The IUL is the busted engine, but on the outside they both look the same. In fact, the one with the busted engine looks even prettier, it has a sexier paint job, it's all juiced up, it's got a new stereo system, it's got navigation system, it's got everything that you need, but the engine's gonna blow out on you and it's gonna cost you more money in the road, and you're gonna end up having to get a new car because this car is not gonna last you. And so it's up to you to choose what you want to do. If all you care about is short-term gratification, then an IUL might be able to serve you for now. But it's not gonna be there for you later when you actually need it. And one thing for me personally is I don't want to tie my future family's legacy to the stock market. The stock market, I don't care what you say, it does not go 8%, 8%, 8%, 8%, 8%. On average it will, but the actual returns of the stock market when you factor in taxes, fees, and other expenses ends up being about 3 to 4%. And even the founder of Vanguard, the first mutual fund, John Bogle, he says the same thing. You really want to study what's going on under the hood. The same goes for being able to buy a car. Don't buy a car from some random person on the street. Buy a car that's certified, pre-owned, certified, meaning it went through all of this check system so that you know that the car that you're buying is actually a solid car. And even though the person that you're talking to, the agent, the car salesman for that example, is actually the one telling you that it looks good, make sure you do your homework first because all universal life policies work the same way. Translation is that you're not in control. And if you don't control it, it's not infinite banking. The whole purpose of infinite banking is for you to recapture all the interest that you're paying to outside lenders, financiers, and bankers and be able to put all that money back into your pocket because now you own the banking function of your life. And you cannot own the banking function of your life when somebody else controls the terms of the banking function, which is true of all UL policies. And so make sure that you have a house, a bank, a system, and a legacy that is all built on protection, safety, security, and my favorite word, the G word, guarantees. Let me explain to you how this works. Let's say that you put a million dollars into a whole life insurance policy and you have a hundred thousand dollars of base premium. That means nine hundred thousand dollars is going to cash value, one hundred thousand dollars is paying for the policy. You're able to leverage against 95% of this cash value, which is eight hundred and ten thousand dollars. You can borrow against this money. Now you have eight hundred and ten thousand dollars in your business, working in real estate, working somewhere else for you while you continue to grow compound interest and dividends on the nine hundred thousand dollars. Every single year that you pay your premiums and every time that you overfund it more, it adds more cash over here to this cash value. Think of it like equity in a home, where you're able to continue adding more equity and leveraging against it through HELOCs or HE loans and continuing to use that money for whatever you want while you also are growing equity in your policy. This is the same for life insurance. The life insurance company continues to reinvest all of your money into safe assets like bonds, real estate, mortgage-backed securities, and cash, and that is how they have maintained the best portfolios of anybody for the history of all investing. Because since 1877, 1896, 1904, for over a hundred years, the main carriers that we work with have always performed a profit, have always paid a dividend, and have always done better than the Pirates of Manhattan. Yup, you guessed it, at Wall Street. And so by year five, you could have millions of dollars of cash value being at work over here in real estate or your business, as well as being able to work in your policy. And if you want to use all that money to go on a trip around the world, you can use it for whatever you want. You can even come visit us in Miami. Try doing that with an IUL or a 401k, you can't. Why? Because when you borrow against an IUL or 401k, you're actually gonna decrease the IUL and you're gonna have fixed payments you have to pay back to your 401k. And if the stock market drops, then you are in a tough position. But with whole life insurance, you're guaranteed never to lose any money. Every single year when the cash value gets added, it is guaranteed never to lose. And that is why Fortune 500 CEOs, banks, universities, and many other wealthy families own massive amounts of whole life insurance because it's predictable, it's liquid, and it's private. And the best thing that you can do with your money is keep it private so you can create the legacy just like the Rockefellers. So here's the bottom line. If somebody says you should use an IUL for infinite banking, run. And if somebody says you should buy term and invest a difference, run even faster. Infinite banking only works with specially designed dividend-paying whole life insurance with a true mutual company. It's the foundation for control, liquidity, and generational wealth. If you want to be able to learn how to implement this into your life, be sure to subscribe, like, and turn the notifications on so that we can keep delivering value to you every single day. Infinite banking is a process, it is not a product, and it will require you to really understand the ins and outs of how banking works and how whole life insurance works so you can learn the banking business. Because at the end of the day, infinite banking is all about taking off your consumer hat, putting on your banker hat so you can become your own banker.