Smart Way to Purchase a New Car

Infinite banking uses a dividend-paying whole life insurance policy with a high cash value to function as your own private bank. Here’s how you can structure it to finance a car:

1. Set Up a High-Cash-Value Whole Life Policy
2. Fund the Policy Aggressively
3. Take a Policy Loan
4. Buy the Car with the Loan Proceeds
5. Repay Yourself Like a Bank

This method allows you to recapture the money you’d normally pay to a lender while keeping your cash value compounding. Would you like help estimating how much premium you’d need to fund for this strategy?

Here’s a step-by-step breakdown of how to structure Infinite Banking to finance a car purchase:

Step 1: Set Up a High-Cash-Value Whole Life Policy

To use Infinite Banking, you need a properly structured whole life insurance policy:

• Choose a policy from a mutual life insurance company that pays dividends.
• Work with an agent who understands Infinite Banking and can design the policy with:High early cash valuePaid-Up Additions (PUAs) to increase cash value fasterNon-Direct Recognition loans (so your cash value keeps growing even when borrowed against)

?? Example: You fund the policy with $20,000 per year. After 2-3 years, your cash value could be $40,000–$50,000, depending on structure.

Step 2: Build Up Sufficient Cash Value

• In the first few years, you focus on funding the policy.
• The more you contribute, the more cash value you have available to borrow against.
• Your cash value earns guaranteed interest + dividends, compounding over time.

?? Example: After 3 years, your policy has $50,000 cash value, and you want to buy a car worth $30,000.

Step 3: Take a Policy Loan

• Instead of withdrawing money, you borrow against your cash value using a policy loan.
• The insurance company gives you the loan, using your cash value as collateral.
• Your cash value remains intact and continues to grow.

?? Example: You take a $30,000 policy loan at 5% interest.

Step 4: Buy the Car with the Loan Proceeds

• Use the loan money to buy your car outright, avoiding traditional bank financing.
• You now control the financing terms.

?? Example: You buy a car for $30,000 in cash.

Step 5: Repay the Loan Like a Bank

• Instead of making car payments to a lender, you pay yourself back.
• Set up a repayment plan with principal + interest, just like a bank would.
• You can set flexible terms—pay it back in 3, 5, or 7 years.

?? Example:

• If you set a 5-year repayment plan at 7% interest, you pay $594/month.
• The insurance company charges 5% interest, but your money still earns inside the policy as if you never touched it.
• You recapture interest that would’ve gone to a bank.

Step 6: Repeat the Process

Once the loan is repaid, you can re-use the cash value to buy your next car, finance business expenses, or invest.

• Your policy grows tax-free, and you gain more financial control.
• You avoid traditional car loans and keep your wealth inside your system.

?? Long-Term Strategy: Every time you buy a car, you’re recycling your money, instead of giving it away to a lender.

Key Benefits of This Approach

? You control the financing—no credit checks, no bank approvals. ? Your money keeps compounding, even when you borrow against it. ? You recapture interest instead of paying it to a bank. ? Tax-free policy growth and access to cash anytime.

Would you like help modeling numbers based on your income and savings?

4o