How Safe is Infinite Banking?

What You Need To Know

Seven Common Questions About The Bankers’ Secret™ – based on The Infinite Banking Concept (Becoming Your Own Banker)

With so much uncertainty in the economy and the stock market, people often wonder how the Infinite Banking Concept will hold up under various economic scenarios.

1. How safe is my money with the Infinite Banking Concept?

The companies recommended by McGuire Financial are among the financially strongest life insurance groups in Canada. They’ve not missed a dividend payment for more than 170+ years, including during the Great Depression, WW2, 2008 Boom/Bust, etc.

Life insurance companies are strictly regulated and have several layers of protection:

  • They are regularly audited to ensure they maintain sufficient reserves to pay all policyholders.
  • If an insurance company fails, a government agency will take over to protect the interests of all policyholders until a different insurance provider can absorb the policies.
  • The Bankers’ Secret™ (based on The Infinite Banking Concept) uses insurance companies that are essentially owned by the policy holders, rather than stockholders, which allows the business to focus on the long-term interests of policyholders instead of the short-term demands of the market

2. Where do the companies that offer the Infinite Banking Concept invest money to protect and grow it even in volatile times?

  • Over 90% of their portfolio is invested in investment-grade fixed-income assets
  • Their bond portfolios are well-diversified across many industries and companies
  • Due to their financial strength and reserves, they have the ability to hold on to any assets that may decline in value for many years until they recover
  • They had virtually no exposure to the risky investments that caused the market meltdown in recent years
  • They’ve not missed a dividend payment for more than 165 years, including during the Great Depression.

3. How would a decline in the dollar affect this strategy?

Policies that utilize the same principles as the Infinite Banking Concept have survived for more than 165 years in every economic situation imaginable. They always survive the lows.

Consider this, in an article from Money Central when the dollar was taking a beating in 2009 (, on October 13, 2009), it was reported that central banks in numerous Asian countries were “actively buying dollars to check its fall against their currencies.”

Why do you think they would do that?
The reason given is that their exporters “can’t handle a drop in profitability and competitiveness,” if the dollar drops too far. Their prosperity has been in part due to a strong dollar, and “they aren’t going to give up all that easily.”

The point is that the market can experience great fluctuations in a short amount of time that no one is capable of predicting. But because you must ‘park’ your money somewhere, the place least exposed to the risks of the world economy, thus the best place for your money, is the Infinite Banking Concept.

4. How will the Infinite Banking Concept policies hold up if we have high inflation?

The insurance companies recommended by McGuire Financial have most of their assets in long-term investment-grade corporate bonds. When inflation drives up interest rates, bond interest rates typically increase, which can increase policy dividends as well. This is precisely what has happened during high inflation periods in the past.

“The Infinite Banking Concept gives you an advantage over traditional investments where you may not only lose the purchasing power of your money, you could also lose some or all of your hard-earned dollars,if the value of your investment tanks.”

The Infinite Banking Concept policies are designed to become more efficient every single year. The growth of both your cash value and the death benefit is guaranteed and exponential, which in itself gives you some protection against inflation.
Discover what guaranteed, exponential growth looks like by adding a custom-tailored Infinite Banking Concept policy to your financial plan.

5. How will the Infinite Banking Concept be affected if deflation becomes a problem?

In a deflationary environment, income is king. That’s why investors struggle to find safe, dependable sources of income. Which means top-quality bonds that can provide that income – and which make up a major portion of an insurers’ portfolio – would boom.

Bonds do well in a deflationary environment because as interest rates decline, the higher interest being credited on existing bonds become more valuable. The companies used by McGuire Financial Group are some of the financially strongest life insurance groups in the world. They have the reserves available to hold bonds until maturity. Older bonds with a higher interest rate help offset new bonds that may be purchased at a lower interest rate.

Key Point: It’s important to remember that the guaranteed cash values will continue to grow – and the growth gets better every year, and there’s nothing you can do about it!

6. Will I miss out if I put money in an Infinite Banking Concept policy and the stock market booms?

If you’re looking for the next get-rich-quick scheme, the Infinite Banking Concept may not be for you. It isn’t reliant on the boom and bust of the stock market for profits. But if you’re interested in growing your wealth over the long term, this safe and reliable method will produce greater returns than you could ever have imagined.

Once credited to your plan, both your guaranteed annual increase and any dividends you received are locked in. They don’t vanish due to a market correction. Your principal is locked in, too. With the Infinite Banking Concept, there may be times when you feel “left out” – like when your friends start bragging about the killing they’re making in the latest “hot” investment that everyone’s jumping on – real estate, tech or oil stocks, commodities, currency, gold – you name it.

But the Infinite Banking Concept is all about building a solid financial foundation and a secure future. You won’t see thrilling spikes, but you’re also not going to experience unpredictable, heart-stopping losses that inevitably follow.

7. What if I lose my job and can’t pay my premiums?

The Infinite Banking Concept ® gives you great flexibility. That’s because typically at least 50% of your premium will be directed into a “Paid Up Additions Rider” (PUAR), with the rest going towards your “base” premium. The PUAR is the little-known option that significantly turbo-charges the growth of your cash value. You could have up to 40 times more cash value, especially in the early years, when your policy includes this rider.

Because paying the premium that goes into your Paid Up Additions Rider is optional, in a pinch, you can cut back on or stop paying that premium. Some companies will even allow you to catch up on that premium later, as your financial situation improves.

You can also use your cash value and dividends to pay your base premium when cash flow is tight.