What do I need to get started with IBC?
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The biggest mistake people make when starting The Infinite Banking Concept isn't choosing the wrong insurance company or getting their policy designed incorrectly - it's waiting too long trying to make everything perfect. As someone who has implemented IBC for hundreds of clients, I've learned that getting started is remarkably straightforward once you understand a few key principles.
Understanding the Real Problem We're Solving
First, let's be clear about what we're actually doing with IBC. We're not trying to win a contest for the highest cash value in year one, and we're not trying to hack the system. We're solving the need for financing throughout our lives by creating our own banking system using dividend-paying whole life insurance as the foundation.
During my 20 years in Silicon Valley tech, I spent a lot of that time in the data center business. When designing a facility to house thousands of computers, you don't build it just to handle the power needs of the first few machines - you build it to accommodate future growth. Similarly, when starting IBC, we want to create a foundation that can grow with our financial lives.
Why Whole Life Insurance is Hard to Mess Up
Here's something that might surprise you: whole life insurance is actually incredibly difficult to mess up. Think of it as a unique asset class that combines the best features of several familiar financial tools:
- The guarantees and liquidity of a savings account
- The tax benefits of a ROTH IRA (but for very different reasons)
- The equity-building characteristics and access to credit of real estate
Ironically, the only way to truly mess up a whole life policy comes from trying too hard to maximize early cash value - exactly what many "experts" online recommend. This approach can lead to reduced long-term efficiency or even catastrophic policy failure.
The Simple Steps to Get Started
Getting started with IBC involves three basic steps:
1. Read "Becoming Your Own Banker" by Nelson Nash - this is the source material for all things IBC
2. Connect with an Authorized IBC Practitioner through infinitebanking.org
3. Complete the application process with your chosen practitioner
The application process typically involves:
- Filling out a basic application
- Potentially completing a paramedical exam
- Getting approved at your health rating
- Deciding on policy design options and strategy
- Signing documents and making your first premium payment
Key Things to Remember
Once your policy is in force, remember these important principles:
1. You're in control - this is your policy to use as you see fit
2. Think long range - the policy gets better every year
3. Be an honest banker - treat your banking system with respect
The Truth About Early Cash Value
While many focus on maximizing first-year cash value, this approach often creates more problems than it solves. Instead, understand that there's a natural capitalization period, just like with any business. Your policy will have immediate cash value, but it will be less than your premium for the first few years. This is normal and actually sets you up for better long-term success.
The Bottom Line
Getting started with IBC doesn't require perfect timing or perfect design. It requires understanding that you're building a banking system that will serve you for life. The sooner you begin, the sooner you can start creating the financial tailwind that Nelson Nash describes - making everything in your financial life more efficient and effective.
Ready to Learn More?
If you're interested in implementing IBC in your own life, schedule a free consultation with me at StackedLife.com/consultation. We'll discuss your specific situation and determine if IBC is right for you.
Or, if you still want to learn more before talking to anyone, check out my course offerings:
Free: Adding Certainty to Supercharge Growth
Paid: IBC MASTERY
