facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog external search brokercheck brokercheck Play Pause
When Not to Start an IBC Policy? Thumbnail

When Not to Start an IBC Policy?


We know that implementing the Infinite Banking Concept can help every single person in the United States (and Canada). Even though this is true, not everyone should or can implement this immediately. Some will need to start with getting their financial house in order.

Here is a guide for things you should do before funding a policy.

First and foremost, we need to make sure you have enough life insurance protection.

This is more important than starting your first IBC policy even though it may not be where you want to get started.

This plan could be a convertible term policy which can later be converted into an IBC dividend paying whole life insurance policy. The term will provide you with much more death benefit protection until you have more excess cashflow to start a policy.

And remember this, the only time you can buy life insurance is when you don’t need it in regards to your health!


The second most important thing to do before starting a policy is getting educated on the IBC.

It is crucial that you have a general understanding of the concept (you don’t need to be an expert, that is our job). This will save you (you will know the important questions to ask) and your financial representative time (we can focus on educating you on the things that don’t make sense, instead of teaching from the ground up) and streamline the process to you getting your policy started.

Education will also help you filter through the noise in the financial industry.

There will be people telling you this is a horrible place to put money and discouraging you from moving forward. Others may say they have a better way/product than what Nelson taught. Education will allow you to sift through this and ensure success in your IBC journey.


There is no way around it, you have to have some cash to start a policy. This attributes to the “If this is so good, why doesn’t everyone do it?” question.

If you aren’t able to save any money or don’t have any cash reserves, you need to work on getting your cashflow positive before starting a policy. Once you start building reserves and increasing your positive cashflow, we can design a plan to transfer those funds into.

We aren’t saying this has to be a huge policy.

It’s better to get started, even with a small policy, then to never get started at all.


You can effectively use the Infinite Banking Concept to pay down debt.

That being said, if you are strung out with a lot of bad consumer debt, it may be more beneficial for you to sell off those items that are nonessential or find other ways to settle those debts before starting a policy. Otherwise, if the debt is manageable, it is extremely beneficial to transfer that debt from third parties into a system that you own and control like a properly structured dividend paying whole life insurance contract.

If you are unsure if you are ready to start implementing the IBC in your life, this is where we come in.

Book Your IBC Discovery Call today and we will be glad to look at your unique situation and develop a plan to get you on the path to financial independence.