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Is Mass Mutual Shooting Down the Infinite Banking Concept?

Mass Mutual, a top life insurance company and heavily relied upon insurance carrier in the Infinite Banking space, recently came out with a memo to their agents against the Infinite Banking Concept.

They shared that the company doesn’t support concepts that promote or present whole life insurance as a personal banking policy that prioritizes maximizing policy cash values and immediate and regular access via policy loans. [paraphrased]

Today, we’ll talk about why an insurance provider may choose to take this position, why this doesn’t impact the Infinite Banking Concept, and how you, as a wise financial steward and wealth creator, can ensure you’re making the best decisions.

So, if you’re considering Infinite Banking, and you want to see exactly what you should watch out for … tune in now!

Why Would Mass Mutual Denounce Infinite Banking?

When a company shoots down the infinite banking concept, what they’re really doing is denouncing the use of oversimplified sales tactics in the sale of whole life insurance. In other words, Mass Mutual and other companies have an interest and a duty to make sure that life insurance remains life insurance. That means that the death benefit remains the purpose of a life insurance policy. 

This doesn’t mean people can’t use whole life insurance to save money and take policy loans. In fact, life insurance companies legally must allow policy loans as a contractual provision—they’re not going anywhere. Insurance companies like Mass Mutual are simply taking a stance against practices that may indicate that life insurance is not performing first and foremost, as life insurance should. 

This statement is about the integrity of the industry, not about IBC in general.

Combating Misinformation

There’s a lot of misinformation about infinite banking policies, both within the IBC community and without. And one of the major problems within the industry is that advisors are trying to make whole life insurance look better than it is. And to be clear: whole life insurance is a very good product. But it’s not magic. The problem arises when people attempt to spread information that makes it seem magical. 

It’s unfortunate when clients purchase a whole life insurance policy only to be blindsided about how life insurance actually works. We’ve heard many a horror story about how clients didn’t know their policy loans counted against their death benefit if they didn’t pay it back. Or they believed that the cash value was unrelated to the death benefit. Many clients are also misled about how life insurance is taxed.

It’s critical that companies like Mass Mutual take a stand against this misinformation in order to protect consumers. This is, first and foremost, the priority of the life insurance companies, as it should be. Hopefully, this encourages more agents to take IBC seriously so as not to spread misinformation.

[21:30] “The problem is [that] this muddies the water. It makes it difficult for consumers to figure out well who do I actually listen to. Who is telling me the right information? How am I going to get a policy that lasts? How am I going to make sure this is set up properly, [and] how do I make sure it’s not just a flash-in-the-pan policy? So the insurance company is looking at all of this happening and recognizing if people are putting in too much premium dollars because they don’t know what they’re really doing, it’s not sustainable.”

What Does This Mean for the Future of Infinite Banking?

As far as you are concerned, education is going to be critical. Before you or any consumer makes a choice, you should seek all the information. Listen to those who are transparent, who discuss the product from all angles, and who are fighting to dispel misinformation. This can take some time to find the right people, but it will be worth it. You want to understand the decisions you’re making so that it empowers you rather than blinds you. 

In particular, pay attention to those who talk about the value of whole life insurance as a protection product. If you come across a producer who doesn’t acknowledge the importance of the death benefit, that’s something to be cautious of. 

For producers and agents, it’s imperative to be acting with integrity and teaching people the truth about whole life insurance and infinite banking from every angle. 

[30:40] “Ultimately we believe that when you do the right thing, that pays dividends. It just might take longer to get there.”

What Should You Be Aware of About Infinite Banking?

Ultimately, this conversation isn’t about whether infinite banking is right or wrong. It’s a concept that many people successfully put into practice every day, but it’s not right for everyone. This conversation isn’t even about Mass Mutual and whether they’re right or wrong. The underlying conversation here is about how to disseminate the most important information so that you can make the best decisions for you and you’re family. 

Sales Tactics vs. Education and Disclosure

If you’re shopping for life insurance, and even hoping to implement IBC, you should look for education, knowledge, and disclosure. The producer who can provide this to you is likely someone with integrity, who has your best interests at heart. They are more apt to care about you and your personal economy, not just making a sale. 

Someone who is just selling may try to entice you with gimmicks, promises, and fancy spreadsheets. This producer may avoid giving you a complete illustration, with all the disclaimers and “fine print” involved. It’s also common for this type of producer to drive home the idea of day-one cash value, or dividend rates. 

At the end of the day, it doesn’t matter which company has the best dividend rate (this changes every year), or how much cash value you have on day one. What matters is that you have a product that is going to serve you and your long-term goals well. 

The reason we don’t share a lot of illustrations and numbers on our show is because those numbers mean nothing unless you understand the concepts. We teach the concepts so that when you’re ready to sit down with a producer, the illustration is going to make perfect sense to you. 

Beware of Transactional Relationships 

Another thing to be cautious of when you work with a producer is how much time they’re willing to give you. If you work with a producer who doesn’t take the time the answer your questions, explain concepts, or address concerns, proceed with caution. You don’t want to work with someone who simply treats you like a number—your personal life and goals don’t matter.

You deserve to have a producer who cares about your and your family. This should be someone who asks YOU questions about what you want, where you live, what you do, and who is in your family. This is how you build a real relationship, and a producer who cares is a producer who can help you find the best possible tools and strategies for your personal situation. 

Recognize that Illustrations are Projections, Not Predictions

[40:16] “[Illustrations] are projections. They’re projecting an assumption into the future based on everything that is happening today. They are not predictions of what exactly will happen 30 and 40 and 50 years from now. It is way too easy to make that switch and take an illustration as a prediction of what exactly will happen.”

The reason this distinction is so critical is because it’s tempting to take illustrations from several companies and compare them under a microscope. This may seem like the best method, yet when you really understand illustrations, you know that this is frankly a waste of time and energy. 

Illustrations become inaccurate the moment your cash value increases because you have new data to apply to the dividend and interest projections. Not to mention, all companies declare new dividends each year. One company could be on top this year and on the bottom the next. 

The minutia of your illustration projection is the least of your concerns. Instead, you want to focus on the big picture of how Mass Mutual and other companies operate. Do they invest conservatively? Are they a mutual company? Do they have a strong business rating? 

Know You’re Buying Life Insurance

Whether you’re planning to execute the infinite banking concept or not, at the end of the day you’re buying life insurance. IBC is a long-term strategy, and it’s also one that can provide tremendous protection to your family. Don’t discount how important this is.

[44:05] “I almost died about three and a half years ago now, after delivering my second daughter. And because of that, I realized probably earlier than many people that… we don’t know exactly how long we’ll live. And that ability to protect our family for whenever that date happens is extremely beneficial.”

It’s so critical to take a balanced approach to your life insurance, even if you believe in the infinite banking concept. Accessible cash value is so important, just as it’s important to have long-term growth and a death benefit. It’s okay to have a mix of policies that achieve different goals. Lucas and I have a mixture of term insurance and whole life insurance, with whole life policies designed for long-term growth and early cash value alike. 

Book A Strategy Call

Do you want to coordinate your finances so that everything works together to improve your life today, accelerate time and money freedom, and leave the greatest legacy? We can help!  Book an Introductory Call with our team today, and find out how Privatized Banking, alternative investments, or cash flow strategies can help you accomplish your goals better and faster. That being said, if you want to find out more about how the Infinite Banking Concept gives you the most safety, liquidity, and growth… plus boosts your investment returns, and guarantees a legacy, go to to learn more.

Rachel Marshall

Rachel Marshall is a devoted wife and nurturing mother to three wonderful children. Rachel is a speaker, coach, and the author of Seven Generations Legacy™, passionate about helping enterprising families unlock their true potential and live into the multi-generational legacy they are destined for. After a near-death experience, she developed a deep understanding of the significance of recognizing and embracing one's unique legacy As Co-Founder and Chief Financial Educator of The Money Advantage, Rachel Marshall is renowned for her ability to make money simple, fun, and doable. She empowers her clients to build sustainable multi-generational wealth and create a legacy that extends far beyond mere financial success. Rachel's expertise lies in helping wealth creators remove the fear of money ruining their children, give instructions for stewarding family money, teach financial stewardship and create perpetual wealth through family banking, and save time coordinating family finances. Rachel co-hosts The Money Advantage podcast, a highly popular show that delves into business and personal finance, including how to effectively manage finances, protect wealth, and generate sustainable cash flow. Rachel's engaging teaching style and practical advice have made her a trusted source of financial wisdom for her listeners.
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