We get asked a lot about the different insurance companies that are used for Infinite Banking and I think it’s a valid question – who doesn’t want to know a little bit about the company they’ll be sending their money to? We call them “Banking Friendly.” These are insurance companies that understand exactly what we mean when we request a policy structured for the Infinite Banking Concept. They are companies with over 100 years of strong financial history and strong guarantees.
There are a handful of these banking friendly companies out there, surely you’ve heard of a few of them and you may have never heard of one or two. Let me break down what you should look for when considering a company for infinite banking:
Mutual Company No matter what the company has to be a mutual company. It’s just a fancy way of saying you and all the other policy holders are mutual owners of the company. Meaning you get to share in the growth the company realizes, instead of that growth going into the pockets of share and stock holders.
100+ Year Dividend History Whole life insurance is really old. You should go with a company that is aged to perfection and has paid dividends for at least 100 years straight. What that tells you is that even through the great depression and all the recessions our country has seen the insurance company remained solid and strong.
Its funny to me that some agents refuse to tell you which insurance companies they work with when utilizing the banking concept, as if that information will allow you to do something without them. The fact of the matter is you have to work through an agent to get to the insurance company and, in my opinion, the agent is 10 times more important than the company. Here is a list of the companies that I have used for Infinite Banking: (in no particular order)
-One America (AUL)
No one of these companies has a magic formula or secret calculation, they are all working with the same data. One may be bigger and more well known than another but all are very highly rated, and have what we’re looking for in an insurance company.
I’ll try not to beat a dead horse but will emphasize again the fact that the insurance company is important but the agent communicating on your behalf with the insurance company is even more important. Go with the company that makes you feel comfortable and offers you the above characteristics and go with the agent that will do what’s best for you.