You start by taking out a whole life insurance policy and then overfund it, meaning you pay more into it than the minimum required. This builds up the cash value of the policy faster.

Once your policy has accumulated a significant cash value, you can borrow against it. This means you’re essentially taking a loan from yourself, using the policy as collateral.

When you borrow from your policy, you set the repayment terms. This gives you flexibility and control over your cash flow. Plus, the interest you pay goes back into your policy, not to a bank.

The benefits of IBC include growing wealth within the policy on a tax-advantaged basis, creating a source of financing that you control, and potentially earning dividends from the insurance company.