Blog 57 – Taking A Loan From Your IBC Policy

There is a lot of confusion in internet blogs about borrowing or taking a loan from your IBC/Banking policy. Let us make it absolutely clear that when you take a loan from your IBC policy what you are receiving is money from the general account of the insurance company that issued your policy, collateralized by the cash value of your policy. You should also know that when you repay your loan, that repayment money does not go to your cash value but to the general account of the insurance company. As you repay the loan, the amount collateralizing that loan decreases dollar by dollar with the repayment amount. This allows the increase of loan availability in your policy.

Notice that on spite of the fact that your cash value is collateralizing the amount of your loan, your cash value continues to receive interest and dividend contributions and that is really great.

There is a misconception spread by some so-called gurus that “the more you borrow from your policy the richer you would become”. That’s pure nonsense as your policy would grow the same if you don’t take any loans.

You should take policy loans when you need to purchase or pay for something that is not normally covered by your budget. The cash value in your policy should be compartmentalized into two funds: the emergency fund covering from six to twenty-four months of expenses and the opportunity fund which should be used to take advantage of opportunities that would typically increase cash-flowing assets. This may include investments in self-education, in your business or in your practice.

We are always available to advise you on the best way to utilize your IBC policy.

If you would like to learn how you can grow a substantial amount of cash that you have access to at any time without penalties, is unrelated to the stock market, and will generate income that is not included in your tax return, visit our website at or feel free to email us your questions at or call us toll-free at 1-844-443-8422.

Isis B. Palicio, LUTCF, MBA
Pedro A. Palicio, MBA, Ph.D.
Infinite Banking Concepts® Authorized Practitioners

We are experts in designing high cash value dividend-paying whole life policies.


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