Cash-Value & Infinite Banking Strategies

No. Infinite Banking is a concept describing how some clients use permanent life insurance, not a standalone product. What you would actually own is a life insurance policy, and whether it suits you depends on your circumstances, your objectives, underwriting, and your ability to fund it consistently over the long term.

A policy loan is a loan from the insurance carrier that uses your policy's cash value as collateral. Policy loans are generally not treated as taxable income while the policy remains in force. Outstanding loans and accrued interest reduce the available cash value and the death benefit, and if a loan balance grows to exceed the cash value, the policy could lapse, which may have tax consequences.

It is a long-term commitment. Early-year cash value is typically lower than the premiums paid, and it takes time before meaningful value accumulates. The strategy requires consistent funding, and if funding stops the results may fall well short of expectations. Loans reduce the death benefit and accrue interest. It is not appropriate for everyone, and Uhud will say so when it is not a fit.

During a review, we explain the design considerations that matter for your specific situation and prepare customized carrier illustrations where appropriate, so you can see how a proposed policy is expected to behave. What we do not publish is a generic design template, because appropriate structure depends on the client, the carrier, and the objective.

No. It requires a long-term commitment to funding the policy, a clear understanding of how cash value and policy loans work, and realistic expectations about timelines. Uhud evaluates each client's goals and circumstances first, and we will be candid if we believe a different approach is a better fit.