Infinite Banking: 10/90 vs 50/50 Whole Life Policy, Cash Value, MEC Limits & Break-Even

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Lane and Tyler discuss infinite banking using specially designed whole life insurance policies that minimize commissions and maximize paid-up additions to function like a liquid “pseudo bank account.” Using a $50,000 annual target premium over 10 years, they explain the 10/90 design (about 10% base premium, 90% cash value) versus a 50/50 design, covering funding duration, “bucket size,” annual minimums and maximums, rollover contribution room, and the IRS MEC (Modified Endowment Contract) limits. They compare early liquidity and break-even points—about years 3–4 for 10/90 versus around year 7 for 50/50—and note agent commissions can be about five times higher on the heavier base-premium design. They also cover carrier selection, illustration realism, use cases (investors, business inventory financing, college planning, wealth storage), policy loans, and options for large windfalls including splitting funding or paying premiums in advance.

00:00 Break Even Hook

00:29 Infinite Banking Basics

01:31 Designing a 10 90 Policy

04:39 Minimums Maximums and MEC

09:02 Choosing Carriers Wisely

10:03 Year One Cost and Break Even

14:44 10 90 vs 50 50 Comparison

19:04 Use Cases and Strategy Fit

22:10 High Net Worth Use Cases

23:07 Parents Funding Kids Policies

23:58 Early Access And Loan Cycling

24:49 Comparing Container Size

26:10 One Policy Or Stack

26:36 Agent Incentives And Fees

30:00 Buy Borrow Die Explained

31:27 Policy Loans Versus HELOC

33:50 Breakeven And Flexibility

35:10 Windfall Funding Strategies

37:02 Qualifying And Insurability

38:41 Paid In Advance Premiums

40:53 Start Early And Use Spouses

41:47 Wrap Up And Next Steps

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Lane Kawaoka is a developer and multi-family syndicator who owns 10,000+ rental units and is the leader of “Hui Deal Pipeline Club” which has acquired over $2.1 Billion AUM of real estate by syndicating over $200 Million Dollars of private equity and most importantly distributed more than $45M back to our investors since 2016.

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