Understanding IBLOC Facilities

The carrier issues a policy loan directly from the policy; an IBLOC is a bank-issued revolving facility that holds a collateral assignment against the policy. Because the lender is a bank rather than the carrier, IBLOC balances are not reported on carrier statements. Maintain them directly on the IBLOC's Facility panel; recording a policy snapshot does not adjust the IBLOC balance.

Facility Panel Fields

• Credit limit — the maximum amount the bank will advance against the collateral
• Advance rate — the fraction of the pledged available cash value that the lender is willing to advance (for example, 85% means the bank will lend up to 85% of the eligible cash value)
• Available credit — credit limit minus the current outstanding balance
• Draws ledger — a chronological record of individual draws, capitalized interest, and fees applied to the facility

The Draws Ledger

Each time you draw on the IBLOC, record it in the draws ledger. The ledger accumulates draws, any capitalized interest the bank adds, and any fees, giving you a running total of what you owe the bank. Unlike a single-advance policy loan, the IBLOC balance can rise and fall as you draw and repay — the ledger captures the full history.

Snapshots Do Not Update the IBLOC Balance

The snapshot loan-balance field records the carrier-issued policy-loan total for that policy. Because an IBLOC is a bank-issued facility that never appears on a carrier statement, its balance is not part of the snapshot. Update the IBLOC directly through the Facility panel, Record draw, Record repayment, or Edit Loan.

Policy Stack is a tracking and visualization tool. It does not provide financial advice, recommendations, or opinions on what you should do with your banking system.

Policy Stack is independent of and is not affiliated with, sponsored by, or endorsed by Infinite Banking Concepts, LLC or the Nelson Nash Institute.