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“Infinite Banking” or “Be Your Own Bank” via Whole Life Insurance…where to start?
Why would you give them the money and borrow it back?  If you didn't give it to them in the first place you wouldn't need to borrow!  It makes no sense at all. It USED to have a different use--as a tax dodge.  You would buy "life insurance" for a low amount of coverage and way overfund it.  Let the money grow and in your later years you would "borrow" against the extra value you had built up in the policy.  Since this was a loan rather than a payout it wasn't income.  When you died the tax liability went poof. Thus so long as what you had to pay in life insurance + the inefficiency of the insurance company was less than the tax rate it was a good deal. Congress closed this loophole a long time ago by prohibiting too great overfunding.