Since this is a life insurance contract, IBC can only be started with a person in which you have an insurable interest. This can be you, your spouse, your child, or your business partner. At the time of the creation of the contract, that person must be insurable. Medical conditions and age can change the insurability or effectiveness of the contract.
Insurability is only necessary when the contract is created, and it does not guarantee insurability for the future if you want to grow your system. For health reasons, you may not be insurable the next time, even if you already have a policy in place. If this is a concern, we have strategies for preparing for this.
If you are denied insurability for health reasons, and those reasons are addressed, it is possible to be tested again and qualify. The typical waiting period between testing is 1 year.
Those who practice IBC must master delayed gratification. For some, access to cash is irresistible and they find it hard to resist spending. IBC is a strategy that creates savings for emergencies, opportunities, and purposeful expenditures. IBC is not a get-rich plan that allows you to spend with no pay-back plan. If you couldn’t borrow it from a bank and pay it back, then you should not be borrowing against your policy.
Because of this, IBC is not for everyone. If you struggle with discipline in making payments to current creditors, then it is likely you may not pay yourself back either. IBC is a financing strategy, which requires money to flow. What might be possible if you controlled the direction your money is flowing?