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Best Insurance Companies for Infinite Banking 2023

best insurance companies for infinite banking

Best Non-Direct Recognition Insurance Companies

Do you want to know the best insurance companies for infinite banking?

We sure did.

We fell in love with the idea that we could fund whole life insurance policies and borrow against the cash value of them without it affecting the dividends or cash value growth. 

In addition to that, the cash in the policy grows tax free, and we leave a death benefit for our family when we ultimately kick the can.

Spoiler alert – none of us are making it out of here alive, so we might as well make the most of it for our families.

Getting all of these benefits doesn’t happen ANYWHERE else other than by using this infinite banking concept.

But, you HAVE to have your policy set up the right way or this could actually work against you.

We didn’t want to have to learn the hard way, so we brought in Justin Donald, a 9-figure investor who built his entire portfolio on the back of non-direct recognition, whole life insurance as his primary investment mechanism to fund his deals.

Justin gave an outstanding Master Class in the Mindset To Money community showing us how he funded a multiple 9-figure private family reserve in one generation! 

In the Master Class he explained the difference between the two types of policies to consider and the ONLY one you should choose. The two options are:

  • Direct Recognition Whole Life Policies
  • Non-Direct Recognition Whole Life Policies

If you’d rather watch than read, click the video below to hear a snippet from the Master Class of Justin explaining the important differences. You CANNOT mess this part up.

Direct Recognition, Whole Life Insurance

In this type of policy, the insurance company directly recognizes and adjusts the policy’s cash value and dividend calculations based on any outstanding loans or withdrawals made by the policyholder.

When a policyholder takes a loan or makes a withdrawal in a direct recognition policy, the insurance company reduces the cash value and dividend calculations of the policy by an amount equivalent to the outstanding loan or withdrawal.

This means that policyholders may experience a decrease in the growth potential and dividend payments of their policy when utilizing loans or withdrawals.

For example – let’s say you have a direct recognition, whole life policy with $100,000 in cash value. You take out a loan of $75,000 of your cash value.

How much cash value would you then have left in the policy? As you’d expect, you’d have $25,000 in cash value left in the policy.


  • Cash Value = $100,000
  • Loan = $75,000
  • Remaining Cash Value = $25,000


In this type of policy, the insurance company treats the policyholder’s policy loans and withdrawals separately from the calculation of dividends. 

This means that when a policyholder takes a loan or makes a withdrawal from their policy, the insurance company does not reduce the dividends or cash value growth of the policy based on the borrowed amount.

Now with same scenario as above – let’s say you have a NON-direct recognition, whole life policy with $100,000 in cash value. You take out a loan of $75,000 against your cash value. 

How much cash value would you then have left in the policy? As you’d expect, you’d have…wait a minute…the full $100,000 in cash value left in the policy? What the what? WELCOME TO NON-DIRECT RECOGNITION.

  • Cash Value = $100,000
  • Loan = $75,000
  • Remaining Cash Value = $100,000

As you can see, it is not in your best interest to use a direct recognition policy. So when you are seeking the best life insurance company for infinite banking, BE SURE the company is only offering you a non-direct recognition whole life insurance policy. 

Justin started with Northwestern Mutual and later learned that they did not offer a non-direct recognition policy, only direct.

After doing a lot of research he later found the best insurance companies for infinite banking that offer the best returns and are the most financially sound, and the list is not very long.
He used the first one on this list to help build his 9-figure investment portfolio!

Here Are The Best Insurance Companies For Infinite Banking

  1. MassMutual is widely regarded as a reputable whole life insurance company for serveral reasons, one being the long-standing history they have and financial stability along with the fact that they offer a range of flexible and customizable whole life insurance policies that align with the principles of infinite banking, providing policyholders with the potential for cash value growth and competitive dividend payouts.
  1. New York Life stands out as well because of their long-standing history of financial stability giving policyholders the peace of mind they need knowing that their polices are backed by a company with a long history of financial success. Their whole life insurance options also allow you to tailor your policy to meet your specific need and finiancial goals. 

These are the two best insurance companies for infinite banking. When it comes to investing in a whole life insurance policy you only want to work with companies with a long-standing history of financially stability, and that give the best returns.  

The next most common question is…

How to set up whole life insurance for infinite banking and use it to your advantage?

These are the steps you’ll want to take when considering infinite banking:

Step 1: Find an experienced insurance agent who specializes in “infinite banking” policies: The companies mentioned above don’t provide just the typical off the shelf products, they are specialists in setting up “non-direct recognition whole life insurance policies” and set you up with a policy that gives them the least amount of commission for your benefit.

Step 2: Have your agent create a non-direct recognition whole life insurance policy for your specific needs.

Step 3: Put a lump sum of money in your policy. Here is an infinite banking example, invest $50,000-$100,000+ and put it in a non-direct recognition policy and have the ability to borrow against your policy within as little as 30 days sometimes sooner.

This is how it works, you can borrow up to 90% of the cash value in your policy. The money in your account can continue to grow with interest as if you never touched it because it’s in a “non-direct” policy, meaning they don’t recognize when you borrow against the policy. 

Step 4: Invest the money in a way that will produce passive returns. Preferably into a business or asset that can create a new revenue stream that can pay the loan back in a reasonably short period of time, to increase your borrowing capacity, or if you don’t pay the loan back it will simply be subtracted from your death benefit.

BUT little do people know that’s only one small piece of the puzzle, especially if you want to truly create a private family bank entity structure that gives you full advantage of tax benefits and liability protection.

Have you ever heard the saying own nothing but control everything? Well that should be your ultimate goal. See how you can create a private family bank, more accurately called a “private family reserve” —>> HERE

Justin started out by investing in mobile homes and used his whole life insurance policy to fund it. He gave a full break down on how he built his 9-figure investment portfolio in this private Mindest To Money Master Class —>> HERE.

Click here to access the Master Class.

As infinite banking continues to become a wealth-building strategy, selecting the right insurance company is imperative.

Everyone has their own unique financial goals, so it’s essential to do thorough research, seek professional advice, and choose an insurance company that aligns with your specific needs. 

We hope you now know the best insurance companies for infinite banking to choose from to give you the best returns.  

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