The Privatized Family Banking System: Part One of a Four-Part Series

Posted By: Jason K. Powers ICOR Blog & News,

I remember hearing about this approach for the first time and how much it impacted my thinking about finances, and I hope by now that you’ve already heard about this and are practicing it to some extent. I have personally used this system to act as car loans, down payments on primary residences, rentals and commercial properties, pay off credit cards, private loans to others, pay for emergencies and much more.

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

Some call it Privatized Banking, Private Family Banking Systems, Private Family Banking (which we will use), IBC, and so forth. 

We must change the way we think about money!

Our view on money.  Money is a tool. Money is not the end goal. If your money is not helping you get where you want to go, then more of it will do you no good. If where you want to go, in the grand scheme of things, is not helping anyone but yourself, you are potentially misaligned in your financial worldview. The Bible talks about money being a root of all sorts of evil. It is not the root, but left unfettered it most certainly will lead to all sorts of evil.

What it is and why it works.  The Infinite Banking Concept is a concept, or a system, that has a theoretically infinite number of ways one can utilize, to live life without the bank. The vehicle through which this is accomplish is properly structured, dividend paying whole life insurance, from a mutual carrier.  The money in this ‘banking system’ has a capitalization period (which can be funded in the onset, but each generation will need to fund ongoing via additional policies), but will continue to grow, uninterrupted, even while you have it borrowed against, being used on other things.


Whole Life Insurance. The vehicle intended is strictly Whole Life Insurance. It is not Term, VUL, IUL or any other derivative of life insurance.  Term insurance has no cash value, thus you cannot use it like permanent (whole life) insurance. Variable Universal Life and Index Universal Life have their attractions, but have various components (such as being tied to the markets), that make it unsuitable for purposes of ‘infinite banking,’ thus should never be used for such.  Fish follow shiny objects, and get caught. Many of these ‘alternatives’ are shiny objects and may even be great for a while, but eventually, you’ll be caught.

The next article will break down the Whole Life structure, and explain how one can use this system now, and set it up for the next generation.

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 generationss. 

Read the book, Becoming Your Own Banker by R. Nelson Nash.
Get your copy at

Jason K Powers, 303.250.1755,