Imagine if instead of borrowing money from a bank, you have your own private bank (of your money) that you could get a loan from, for whatever you need. Then whenever you take a loan, you pay yourself the principal and interest the bank would have received. Instead of the bank making money on your money and the interest you're paying... you're making all the money. 

How much better off would you be?

That's the basic premise behind the 'Infinite Banking Concept', as written by Nelson Nash in 1994.

How The Concept Works
Simplistically, you have your prospects sock away as much money as they possibly can, as quickly as they can, into a good participating whole life policy. (Dividend paying) The money is funneled into the whole life policy for five to seven years. You over-fund the policy to just below the MEC guidelines. Then, whenever your prospects need to make a big purchase, they can borrow the money from themselves, instead of borrowing from the bank (or a credit card company). Now they pay the loan back to themselves, plus the interest they would have paid the bank. Your prospect makes the big profits the bank would have made. 

The Basic Concept Isn't New
It's a great concept. However, the basic concept isn't exactly new. Variations of this concept have been used by many of the industry legends for at least 30 years, which I know of.  Thirty plus years ago, these industry legends would tell their clients that the money they put into their participating whole life policy could be used for emergencies, to take advantage of business opportunities, to fund college, to buy a car, and much more. However, if you take money out prior to age 65 (retirement) you'll want to pay the loan back, plus the interest, so you will have the retirement funds you planned on.

It Works Better Today
As well as the concept worked 30 years ago, it works much better today because of the paid-up additions rider that was introduced in the late 1980's. Today, using a paid-up additions rider, you can dramatically over-fund a participating whole life policy and make it an exceptional wealth accumulation vehicle.

Understanding The Concept
This concept, simply put, is getting prospects to funnel all the money they can into a participating whole life insurance policy, as quickly as they can get it in there. And, then the prospect uses that policy as their private bank. The reason you use a par whole life policy is that it offers several unique benefits, the other investment vehicles don't offer…

1. You can put in as much money as you want… based on the size of the policy, which you can make as large as you need. (Not so, with qualified plans)
   
2. All the money you put into a cash value life insurance policy builds tax deferred. You avoid paying income taxes every year, so your money builds faster.
   
3. You can borrow the money from the policy tax free, without contractual withdrawal penalties. And, there are no early withdrawal penalties from the Federal Government. (Not so, with qualified plans or annuities) 
   
4. There are minimum guaranteed interest rates.
   
5. You have a disability waiver of premium rider that will put the money in for you. This makes the plan self-completing, if you ever become disabled. (Only life insurance offers this unique benefit)
   
6. Life insurance provides a death benefit that gives your family the money you intended to save; in the event you can't be there.
   
7. Life insurance cash values don't count as an asset when applying for college financial aid.