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Top 10 Infinite-Banking-Concept (Warnings!) Red Flags for buying Participating Whole Life Insurance from Insurance Agents

Must-read Infinite Banking Concept Warnings! Don't buy Whole Life Insurance from insurance agents for Infinite-Banking-Concept before reading this!

The article is not about whether the Infinite Banking Concept is a scam nor if the IBC is for you or not. Infinite Banking is not a scam, it is a tool that is often misused in the USA and Canada.

But this may be the most important article on the Infinite Banking Concept that you will need to read.

I will leave the debate on whether Infinite Banking is the right tool for you, it may, or it may not be for you.

It all depends on how you implement it. A supercomputer is no use to you if you don’t know how to use it, it will be a useless and overpriced scrap.

You need guidance, and you need expertise. In the business of buying insurance successfully, you need an honest and knowledgeable insurance agent to look out for you.

There are hundreds or thousands of insurance brokers or financial planners who claim to be experts for IBC, how should you choose and pick the one to represent you in one of a few major purchases in your life?

The article is exactly about this. We have spoken to over 30 insurance brokers, tax specialists, accountants who have been helping Americans and Canadians buying Participating Whole Life Insurance for at least 10 years.

Some are excellent and we wish we can share them to anyone who wants to buy PAR Whole Life insurance for IBC. However, we have also heard some of the worst “advice” from some agents.

We have collected all their advice to share with you, we hope by sharing this information, we can help you to reduce buyer remorse if you decide to go forward with your IBC implementations.

If you hear any of the following from your infinite-banking-concept insurance agents, please consider it a red flag and you should be running away from the insurance agent.

“I don’t do this, I don’t buy this, I don’t buy that”

It is one of the worst possible unprofessional lines that we have heard. The insurance agent or broker provides a service to advise you to make an informed decision about your wealth and estate planning.

It is their business to advise, not to make decisions for you without knowing anything about you.

Take control of your decisions, if the agent can’t provide an analysis to support his/her statements, move on.

“I am also a buyer in this, you should listen to me”

Can you believe that someone has really said it to us?

No madam/sir, you are not a buyer of anything. Unless you are paying for my insurance premium or you are doing it for free.

Buyer beware, I meant you.

“Guarantee Rates and Dividend rates aren’t important, it is an insurance”

It is all math. Either the agent has no idea what she/he is doing, or he/she is hiding something.

“How much you put in as base premium vs PUA is not important.”

It does matter. The more you put in PUA as cash value, the more liquidity and flexible you have with your IBC implementation.

If you hear your agent telling you this, simply ask “please prove it to me with scenarios why base premium vs PUA ratio doesn’t matter”.

If you are not convinced, find another agent.

“Nelson Nash this, Nelson Nash that”

First, the late Nelson Nash is the father and pioneer of Infinite Banking Concept, we agree 100% and recommend anyone who is interested in implementing the Infinite Banking Concept to read Nelson’s book. You can only become better and smarter by reading it.

Nelson has lots of great examples and ideas about using Whole Life Insurance for the banking concept, however, it is not a bible and your situation may be different. It is okay for an agent to idolize Nelson, but it is a red flag if an agent uses Nelson to project authority to you.

“I am a buyer in this transaction as well, it is about both of us, not you”

You won’t believe Bull Shit. A buyer is someone who pays.

Is your agent paying for your insurance?

Is your agent giving you free advice with no commission at stake?

Is your agent the beneficiary of your participating whole life insurance policy?

If not, then you can simply ask him to explain.

“I know which company is the best for you, you don’t have to look at other companies”

Insecurity maybe?

“Trust me”

Do I have to say more?

Regardless of whether you are buying from a used car salesman, a mechanic, a real estate broker, an education consultant, or a stockbroker, if someone says it to you and doesn’t trigger all red flag alarms, you are the problem.

It is not your business nor obligation to trust someone, you should have critical thinking and question anything that you don’t know.

There is no FOMO in buying insurance.

Yes, your insurance premium may rise 6-8% if you buy next year, but you are essentially paying the same mathematically. You may FOMO into “stonks”, or FOMO into real estate, but the cost to buy insurance a bit later won’t change that much in most cases.

Trust yourself, and tell yourself “I am reducing my chance for buyer’s remorse by asking one more question”.

Impractical examples with non-sense illustrations

Some so-called “Infinite Banking Practitioners” threw over lots of “case studies”.

You should pay attention to the numbers used in the case studies. I have seen some “Certified Infinite Banking Practitioners” use 10% ROI on case studies.

My first thought was “I can do better with my saving account if I use the same number”. That’s a huge red flag because IBC works if the number works. If it only works for you with some imagery rate of return, it is what gives Infinite banking a bad reputation.

“I have spent time talking to you, please commit to me that you will be buying with me”, before showing you anything.

We save the best to the last!

One of the worst interactions we have is when an agent asks us to make a commitment to buy from them before the agent sends me anything that needs a half brain to prepare.

Just run. Run before you regret.

Run before your estate or your grand kids tell you that you make a basic mistake that cost them millions of inheritance! just kidding.


Infinite Banking Concept is a powerful wealth management tool for those who can use it and implement it correctly. Bad (or maybe unethical) insurance agents bring bad rep for it.

I hope our little write-up can help you become a successful IBC practitioner as Nelson Nash described!

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About the author

Susanne Ricee

Susanne Ricee is the Diversity and Inclusion Specialist and Researcher at Diversity for Social Impact. Sue brings over 15 years of HR and Diversity, Equity, Inclusion consultation experience.
Sue's previous experience includes Microsoft, Target, and Kraft. Sue is also the manager of Diversity Leadership Directory