Building a System of Policies
IBC works best as multiple policies over time, not one policy. Each new policy adds capacity and flexibility.
From Becoming Your Own Banker, Chapter 14
One of the most common misconceptions is that IBC involves a single policy. In practice, it works best as a system of multiple policies acquired over time — what Nash called "branch offices" of your bank.
Your income and capacity change over the years. A policy designed for age 30 may be undersized at 45. Different policies can serve different purposes — personal financing, business needs, policies for children. New policies restart the capitalization clock with fresh PUA capacity.
Nash also emphasized insuring all insurable family members. Policies on young, healthy individuals cost less per unit of death benefit and have more time for compounding. A policy started on a newborn has 60+ years of growth ahead before retirement age.
The system approach is what makes IBC scalable. A single policy is useful. A system of policies, built over decades and across generations, becomes a genuine family banking system — a financial infrastructure that endures.