Using an IUL to Maximize Cash Flow & Investment Growth
Infinite banking is a powerful wealth-building strategy that allows investors to access tax-free capital, maintain uninterrupted compound growth, and avoid bank lending restrictions—all while leveraging an Indexed Universal Life (IUL) policy.
What Is Infinite Banking and How Does It Work?
Rather than keeping cash locked in traditional accounts, infinite banking allows you to become your own lender, using a properly structured IUL to maximize liquidity and investment potential.
With an optimized IUL, investors:
- Fund premiums at max capacity for maximum cash value accumulation.
- Borrow against their policy, securing liquidity without selling investments.
- Earn uninterrupted compound interest, even when taking loans.
IUL Loans Explained: Borrowing Without Interrupting Growth
Unlike a traditional withdrawal, IUL loans are collateralized through the insurance carrier, meaning:
✅ Your policy’s accumulated value remains intact, allowing continued growth.
✅ You pay interest to the insurance carrier, not back into your policy.
✅ No credit checks, loan qualifications, or repayment deadlines—unlike bank financing.
💡 Key Consideration: Loan rates fluctuate with Fed interest rates—currently around 5% APY.
Case Study: Using Infinite Banking for Real Estate Investing
Fix-and-Flip Strategy with an IUL Loan
Imagine you have $200,000 in IUL accumulated value. You borrow $150,000 for a fix-and-flip investment.
How Your Money Keeps Growing
- Your growth baseline stays at $200,000, not reduced to $50,000.
- You owe 5% APY on $150,000 ($7,500 in interest).
- If the S&P 500 returns 8%, you earn $16,000 in growth.
- After interest, your net gain inside the policy is $9,500.
The Real Estate Flip
You sell the property for $300,000, making $150,000 profit.
You repay the insurance carrier, covering $150,000 loan + $7,500 interest.
Your money kept growing inside the IUL while also funding the property acquisition—a double win.
Why Infinite Banking Works for Real Estate Investors
✅ Maximize liquidity for investments while maintaining uninterrupted growth.
✅ Earn indexed interest on your policy while leveraging cash for deals.
✅ Avoid loan approval barriers, credit checks, and strict repayment terms.
✅ Access tax-free growth with strategic wealth-building advantages.
Real-World Success Stories: Who Has Used Infinite Banking?
Some of history’s most successful entrepreneurs and investors have leveraged infinite banking to scale their businesses:
- Rockefeller Family – Built multi-generational wealth using life insurance loans.
- Ray Kroc (McDonald’s) – Financed early franchise expansion using policy loans.
- Walt Disney – Used infinite banking to launch Disneyland after banks turned him down.
- J.C. Penney – Saved his company during the Great Depression by borrowing against his life insurance.
Ready to implement infinite banking for real estate investing or wealth-building?
Book an appointment today, and let’s craft a customized strategy for your financial future.