Are there any risks or drawbacks to infinite banking?

While infinite banking can be a powerful financial strategy, there are some risks and drawbacks to consider. One significant risk is the potential for policy lapse if loans are not repaid, or premiums are not paid on time. This can lead to the loss of coverage and tax consequences. Additionally, policy loans accrue interest, which must be accounted for in the overall financial plan. Working with a knowledgeable advisor and understanding the policy details is crucial before implementing an Infinite Banking strategy.