When someone wants to buy a life insurance policy, he/she has to go through a double process: a medical underwriting, and a financial underwriting. The financial underwriting is the process that the insurance company follows to ensure that the payor of the policy (usually the owner) can afford the premiums (payments) long enough for the policy not to lapse.
Quite often, as people start to realize how good the infinite banking concept is as a financial tool to grow and protect their wealth, they want to allocate more and more money towards it. This is true for juvenile policies (on kids), where we sometimes wish we could start bigger policy in order to create a bigger savings vehicle.
While we agree about the benefits of funding a policy properly, the insurance company doesn’t see it that way. At the insurance level, what matters is the need for insurance, not how much money you want to deposit into it. This is especially true for those kids’ policies we just talked about. Hard to justify to an insurance company that the child should have $500K of life insurance, because this allows us to funnel more money through it. Especially if the parents doesn’t have that much insurance on themselves.
There is a way to increase your level of funding into the concept, even if the insurance company doesn’t want to approve a big enough policy on yourself or your business. You can open multiple policies, on yourself and also on your dependents or even business partners.