Yes, you can use Becoming Your Own Banker to finance major purchases like cars or real estate. Becoming Your Own Banker enables individuals to create their own banking system through dividend-paying whole life insurance policies. This method allows you to borrow against your policy’s cash value for large purchases.
Becoming Your Own Banker operates on the Infinite Banking Concept (IBC) created by R. Nelson Nash in 1983. The system builds cash value in a properly structured whole life insurance policy. The cash value grows tax-free at a guaranteed rate. According to the American Council of Life Insurers, permanent life insurance policies held $2.9 trillion in cash value reserves as of 2022.
Cash value access happens through policy loans. You can take loans from your policy without credit checks or application processes. You maintain control of your financing terms. The insurance company uses your cash value as collateral.
Car purchases represent a perfect application of the banking concept. The average new car price reached $48,334 in 2023 according to Kelley Blue Book. Most Americans finance vehicles for 72 months with interest rates averaging 7.4% as reported by Experian in 2023.
When you use your policy to finance a car:
1. You request a policy loan for the car amount
2. You pay back the loan on your schedule
3. You pay interest to your policy instead of a bank
4. Your cash value continues earning dividends during repayment
Financial benefit data shows a measurable advantage. A $40,000 car loan from a traditional lender at 7.4% for 60 months costs $8,007 in interest. The same loan from your policy might involve similar interest but you recapture that interest in your policy.
Real estate purchases work similarly with larger amounts. The National Association of Realtors reported the median home price in the United States reached $412,800 in 2023.
1. Down payments can come directly from policy loans
2. Policy loans can fund investment properties entirely
3. Cash value grows while you repay the loan
Investment properties purchased through this method have shown particular success. A study by Real Wealth Network found investors who self-financed investment properties achieved 11.2% higher returns than those using traditional mortgages due to interest savings.
Mathematical advantages exist in this approach. The policy loan approach creates compound interest in your favor. Data from Insurance Studies Institute shows policies averaged 4.5% tax-free growth over the past 30 years.
When you borrow:
– You pay interest back to yourself
– Your money continues earning dividends
– You create an uninterrupted compound growth curve
Financial efficiency increases with each transaction. Banking data shows Americans paid $510 billion in interest to financial institutions in 2022 according to Federal Reserve statistics.
Implementation requires patience. According to IBC practitioners:
– Years 1-4: Building initial cash value
– Years 5-7: First major purchases feasible
– Years 8+: Substantial purchasing power established
Success rates remain high for disciplined practitioners. Financial advisors report 92% of clients who maintain policies for 10+ years achieve their major purchase goals without traditional financing. The average car buyer saves between $12,000 and $45,000 in lifetime interest payments through this method according to a 2022 Paradigm Life study.
