What Is the Prospera Personal Bank Strategy?
The Prospera Personal Bank Strategy, inspired by the Infinite Banking Concept, uses a life insurance policy you own as a source of funds you can borrow against, so you can rely less on outside lenders for major purchases and opportunities.
At its core, the strategy uses a specifically designed, dividend-paying whole life insurance policy. You build cash value over time, borrow against it when you need funds, and benefit from the tax treatment life insurance receives under federal law. It is a life insurance contract, not a bank account or a deposit.
Designed and funded correctly, the strategy can help you:
- Build Cash Value: Grow cash value with a guaranteed minimum, plus dividends, which are not guaranteed.
- Borrow on Your Terms: Access your cash value through policy loans. Loans accrue interest and reduce the death benefit until repaid.
- Build Your Legacy: Provide for your family and loved ones with a death benefit.
How the Personal Banking Strategy Works
Create Your Foundation
Your premium payments fund a whole life insurance policy with features optimized for cash value growth and liquidity.
Build Cash Value
Over time, your policy accumulates a cash value that grows tax-deferred. This creates a financial reservoir that you can access when needed.
Leverage Your Wealth
Take policy loans against your cash value for investing, paying off debt, funding education, or enjoying retirement. Loans accrue interest, and unpaid loans reduce the cash value and death benefit.
Enjoy Tax Advantages
Cash value grows tax-deferred. Policy loans are generally not taxable while the policy stays in force and is not a modified endowment contract (MEC). Death benefits are generally income-tax-free to beneficiaries.
Who Should Consider the Personal Bank Strategy?
At Prospera, we understand the unique financial challenges faced by families, business owners, and high-net-worth individuals.
The Prospera Personal Bank Strategy is ideal for families, entrepreneurs, professionals aiming to maximize retirement efficiency, and anyone who values access to their cash value and is committed to funding a policy for the long term.
Personal Bank Strategy FAQ
What is the Prospera Personal Bank Strategy?
It is our implementation of the Infinite Banking Concept, using a dividend-paying whole life policy designed for cash value and liquidity so you can borrow against your own policy for purchases instead of going to an outside lender.
How does borrowing from my policy work?
You take a policy loan against your cash value and set the repayment pace. Loans accrue interest. With some policy designs the full cash value keeps earning dividends while a loan is out; with others the borrowed portion earns differently. Unpaid loans plus interest reduce the cash value and death benefit, and if loans grow too large the policy can lapse and trigger taxes.
How long before there is meaningful cash value?
These policies are designed for early cash value, but the first years are the build phase. It is a multi-year strategy, not a place for money you need next year.
Do I need to be wealthy to start?
No. The strategy scales to the premium you can sustain. Consistency matters more than size, and underfunding or overfunding both cause problems, which is why design comes first.
Important Information
The Personal Bank Strategy uses a whole life insurance policy. It is not a bank, a bank account, or a deposit, and it is not FDIC insured or insured by any federal government agency. Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Dividends are not guaranteed. Policy loans accrue interest and reduce the cash value and death benefit; a lapse, or a policy that becomes a modified endowment contract (MEC), can trigger taxes. Cash value builds slowly in the early years and surrender charges may apply. Prospera Financial offers insurance products. This is not tax or legal advice; consult your CPA or attorney.
Ready to Explore the Personal Bank Strategy?
Schedule a complimentary consultation to explore how the Personal Bank Strategy can align with your goals.