The Privatized Family Banking System. Part II of IV-Part Series

Posted By: Jason K Powers ICOR Blog & News,

*To read Part I, visit:


It is advised you go back and read Part 1 before continuing below, to get the full context of what is going on. In the previous article, we talked about the best vehicle for Infinite Banking – properly structured, dividend paying whole life insurance, from a mutual carrier. Next, we will break down various details. 

The intent behind what is outlined below is to help you see an alternative way to have your money flow, in contrast to what is generally taught in public circles, the traditional education system and the financial world as we see it from the publics side.  It is also to help set up the next generation for greater financial success (or at least provide some financial relief), and to have the ability to utilize the Privatized Family Bank instead of traditional lenders.

This is the Infinite Banking Concept


Dividend Paying from a Mutual Carrier.  The best carriers with whom to be insured by are Mutual Carriers, as opposed to Stock owned insurance companies.  With Mutual Carriers, its interests are for the stock-holders, not the policy owners. It will pay dividends to the policy owner (you) and those dividends will purchase more insurance (death benefit), thus building your cash value growth even more.

Properly Structured.  These policies are structured with maximum cash value in mind, access to that cash value, maximum growth, and the balance between them all.  Please do not call your life insurance agent who isn’t not formally educated on the Infinite Banking Concept, and tell him you want a policy. You find a trained and certified individual (hey, that’s me!) who knows and understands how these work, how they’re supposed to be structured, and how it applies to you and your own personal situation. There is no one-size-fits-all approach!

Uninterrupted Compounding.  One of the best functions of IBC (the Infinite Banking Concept) is its uninterrupted compound growth of cash value that is happening year over year inside of the policy. You see, when one borrows against the cash value of a whole life insurance policy, you are borrowing “against” the policy and not “from” the policy.  You are, in fact, borrowing directly from the insurance carrier, thus your money is able to effectively sit in a pile, uninterrupted, and grow as if it never left the pile. Each policy has a guaranteed growth rate of cash value (not including dividends), year over year. As you build up this policy, this banking system, it will compound larger and larger each and every year. 

Imagine over a lifetime of one person, how much one can build up cash value. Now, take that one policy, and build up an entire system of policies (you, your spouse, your children, et al).  Now, take it one step further and keep this going throughout multiple generations.  Finally, taking it further, while all of the policies are growing throughout life, the beneficiary could be The Family Trust, thus further expanding the Trusts ability to act as the family bank.


In Part 3 of this article, we’ll continue explaining different components and benefits of a properly designed policy for Infinite Banking.

Jason K Powers is a Multi-Business Owner, Real Estate Investor and an Authorized IBC Practitioner. Jason works with clients across the country showing them how to achieve their financial goals by taking control of the banking function in their life and creating financial velocity that can last for generations.

Read the book, Becoming Your Own Banker by R. Nelson Nash.
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Jason K Powers, 303.250.1755,