The Infinite Banking System (IBS) is a financial strategy that uses whole life insurance policies with high cash value to create a personal or business financing system. Business owners can borrow against their policies to fund operations, invest, or manage cash flow.

Yes, IBS is entirely legal and relies on participating whole life insurance policies offered by Canadian insurance companies.

IBS offers access to liquidity without traditional credit checks or approval processes. Policy loans are also repaid on your schedule, not a lender's.

Businesses with consistent cash flow or those requiring frequent financing for expansion, equipment, or operations benefit greatly.

Yes, IBS can be integrated into an incorporated business's financial strategy, often through corporate-owned life insurance.

Yes, the system provides a stable source of liquidity, allowing business owners to cover expenses or seize opportunities without relying on external funding.

It's a type of life insurance that accumulates cash value over time and pays dividends, which can be reinvested to increase the policy’s value.

The cash value is accessed via policy loans or withdrawals, providing a tax-efficient way to use funds for business needs.

No, loans taken against the cash value of your life insurance policy are not considered taxable income.

Yes, policies can be designed to prioritize cash value accumulation, enabling faster access to funds.

The death benefit is reduced by the amount of the outstanding loan and accrued interest, but the remaining balance is still paid to the beneficiaries.

Yes, the cash value continues to grow as if the borrowed funds are still in the account, thanks to non-direct recognition policies.

Corporate-owned policies may offer tax advantages, such as using the policy’s cash value to fund investments or business needs without triggering immediate tax events.

In most cases, premiums are not deductible, but the growth inside the policy is tax-sheltered.

Yes, the death benefit can be used to fund succession plans, pay off business debts, or provide liquidity to heirs.

The policy is a personal or corporate asset that remains intact regardless of the business's financial condition.

Yes, IBS allows you to self-finance, reducing reliance on banks and external lenders.

Funds within the policy grow tax-sheltered, potentially reducing the overall tax burden on investment income held within the corporation.

IBS can provide liquidity during slow periods or fund operating expenses without dipping into external reserves.

Yes, policy loans can be used to purchase equipment, expand facilities, or hire additional staff.

IBS loans offer greater flexibility and do not require repayment on a fixed schedule, unlike traditional lines of credit

IBS can act as a supplemental retirement fund, allowing business owners to access the cash value tax-efficiently in their later years.

Yes, IBS allows you to self-finance, reducing reliance on banks and external lenders.

Yes, borrowing against your policy’s cash value can provide funds to pay off high-interest debt, replacing it with a lower-cost loan