Banking on yourself is a financial planning strategy that involves using a dividend-paying whole life insurance policy as a personal savings and lending vehicle¹². The idea is to build up cash value in the policy through regular premium payments and dividends, and then borrow from the cash value when you need money for any purpose, such as buying a car, paying for college, or investing in a business¹². You can pay back the loan on your own terms, or not at all, as long as you keep paying the premiums and interest¹². 

The benefits of banking on yourself are:

- You can grow your wealth safely and predictably, regardless of market conditions, because the cash value in the policy is guaranteed to increase every year and is not affected by stock market crashes or recessions¹².

- You can access your money tax-free, either by withdrawing your basis (the amount of premiums you paid) or by taking policy loans that are not reported as income¹².

- You can avoid paying interest and fees to banks and finance companies, and instead pay yourself back with interest, creating a positive cash flow cycle that increases your wealth¹².

- You can enjoy flexibility and control over your money, because you can use it for any purpose, without restrictions or penalties, and you can decide when and how to repay your loans¹².

- You can leave a legacy for your loved ones, because the policy will pay a tax-free death benefit to your beneficiaries when you die, regardless of how much you borrowed from the cash value¹².

Banking on yourself is not a get-rich-quick scheme or a magic bullet. It requires discipline, patience, and commitment to follow a long-term plan. It also requires working with a qualified advisor who can help you design and implement a policy that meets your specific needs and goals. Not all whole life insurance policies are suitable for banking on yourself. You need a policy that has certain features, such as high early cash value, non-direct recognition loans, and paid-up additions riders¹². These features allow you to maximize the growth and efficiency of your policy and optimize your borrowing and repayment strategy. 

Banking on yourself is a proven alternative to conventional investing and saving methods that can help you achieve financial security and peace of mind. If you are interested in learning more about banking on yourself, you can request a free analysis from a Bank On Yourself Authorized Advisor here .

(1) Safe Money & Retirement Financial Planning Strategies: Bank On Yourself. https://www.bankonyourself.com/.

(2) What Is Bank On Yourself? Learn from Its Founder. https://www.bankonyourself.com/what-is-bank-on-yourself.

(3) An Introduction to Bank On Yourself - Life Benefits. https://www.life-benefits.com/intro-to-boy/.

(4) Bank on Yourself - Infinite Banking Whole Life Insurance Concept. https://retirewire.com/bank-on-yourself-and-the-infinite-banking-whole-life-insurance-concept/.