How It Helps You Control the Banking Function and Build Generational Wealth
“Should I take out a life insurance policy on my child?” It’s a question that often brings mixed emotions. Some people hesitate to even consider it—but when you look deeper, the benefits are both practical and powerful. Through the lens of the Infinite Banking Concept (IBC), taking out a policy on your child is about more than just coverage. It’s about giving your family the ability to control the banking function across generations—and setting your kids up with financial tools most people don’t get until far too late in life.
Let’s unpack why this strategy matters.
1. Guaranteed Insurability: Lock It In Early
One of the biggest advantages of starting a policy when a child is young is locking in insurability while they’re in peak health. Life throws curveballs—accidents, illnesses, and life changes can make it harder (or even impossible) to get coverage later on. Starting early guarantees that your child has access to a financial asset they can use for life, no matter what the future holds. Plus, many insurance companies allow coverage based on what the parents carry, so maximizing that early can be a smart strategic move.
2. A Safety Net No One Wants But Everyone Needs
We hope this never becomes necessary, but in the unimaginable event of losing a child, a life insurance policy offers financial space to grieve. There’s no way to ease the emotional pain—but not having to worry about keeping your business running or paying the mortgage during that time can be an immense relief. It’s not a comfortable conversation, but it’s a responsible one.
3. Teaching Kids to Control the Banking Function Early
One of the most underrated benefits of starting a policy for your child is what it teaches them about money. Imagine your child growing up with a policy in their name—something that stores value, earns guaranteed growth, and can be used to invest, pay for school, or fund a business. You’re not just giving them a financial asset—you’re giving them a financial mindset. You’re teaching them stewardship, responsibility, and what it means to control the banking function from a young age. This kind of early education creates lifelong habits around saving, investing, and using money intentionally.
4. Fueling Future Opportunities
As your child grows, so does the cash value of their policy.
That cash can one day help fund:
- College tuition (without student loans)
- Their first car or down payment
- A small business
- Their own IBC policy as a young adult
The beauty of this strategy is flexibility. You’re creating a financial foundation that can grow with them—without being tied to traditional banks, student loan programs, or risky investments.
5. It’s a Piece of the Family Banking Puzzle
While child policies are powerful, they’re not a replacement for robust coverage on the parents—especially the income earners. Think of it like building a financial fortress: the parents are the main pillars, and the children’s policies are the supporting structure that adds strength and future potential. And here’s something most people don’t realize: You don’t have to hand over control of the child’s policy when they reach a certain age. Instead, you can keep the policy within your family banking system and maintain strategic control. Later, your child can start their own policy while the original one continues to grow in the family’s name.
That’s the long-game of generational Infinite Banking.
6. It’s Not Morbid—It’s Empowering
Some people think this is a morbid conversation. But it’s not about betting on the worst—it’s about planning for the best.
It’s about:
✅ Teaching kids how to build and manage wealth
✅ Giving your family access to unrestricted capital
✅ Building a system that creates freedom—not dependence
Taking a policy out on your child means you’ve thought about their future in a whole new way. It’s a gift of opportunity, education, and protection—all rolled into one.
7. Grow It Over Time, Build It with Intention
You don’t have to go big from day one. Start with what fits your current situation, and scale as your finances grow. That’s the beauty of IBC and controlling the banking function—you move at your own pace, on your own terms, with long-term goals in mind. Policies on children can evolve into full-blown generational wealth tools, especially when combined with the right planning and education.
Final Thought: A Legacy of Financial Freedom
The Infinite Banking Concept isn’t just about insurance—it’s about creating a family system of security, opportunity, and financial independence.
Starting a policy on your child is one of the most powerful ways to set that system in motion. It creates a legacy that can stretch far beyond your own lifetime.
If you’re curious about what this could look like for your family, let’s talk. We’ll help you design a plan that supports your child’s future—and empowers your whole family to control the banking function for generations to come.