When it comes to the Infinite Banking Concept (IBC), one common question is, “How many policies do I need?” The answer isn’t a simple number because it depends on your long-term financial goals and your vision for building generational wealth. IBC is a long game—it’s about setting up a financial system that benefits not just you, but also your children, grandchildren, and future generations. Starting a family banking system requires careful thought and planning, but it can create a legacy that lasts for generations.
The Foundation of Your Family Banking System
In the beginning, starting with one policy can make sense, especially if you’re just learning about IBC and how it works. A typical starting point might be a policy on yourself or your spouse. However, the real power of IBC lies in expanding the system thoughtfully over time. One way to do this is by adding policies for each member of your family, beginning with your children.
For instance, I started this journey for my own family by taking out policies on my wife and each of my children. These policies are the foundation of our family banking system. They will provide financial security and flexibility for my children as they grow, and eventually, for their children too. By starting policies on each family member, you’re essentially planting seeds that will grow into a robust family banking system over time.
Setting Up Future Generations
The goal with IBC isn’t just to secure your own financial future but to set up a system that continues to benefit future generations. Imagine a family banking system where each generation sets up policies for the next. By starting policies on your children now, you’re giving them a head start on building their own financial freedom. As they grow older, they can take over these policies and potentially add more, creating a cycle of growth that compounds over time.
The beauty of this system is that it’s deliberate and thoughtful. You’re not just building wealth for yourself; you’re laying the groundwork for your children, grandchildren, and beyond. It’s about creating a family legacy of financial independence and teaching each generation how to manage and grow this system effectively.
Expanding the System
As your financial situation evolves, you might find opportunities to add more policies to your system. For example, once your initial policies are well-funded and you have excess cash flow, you could consider adding more policies. This might include additional policies on yourself, your spouse, or even more policies for your children.
It’s important to remember that IBC is not a one-size-fits-all approach. The number of policies you need will depend on your family’s specific needs and goals. Some families may start with just one policy and gradually expand to multiple policies over time. Others might begin with several policies right from the start. The key is to have a long-term vision and be intentional about how you build and use your family banking system.
My Journey and Decision
In my own experience, I haven’t started a policy on myself because I already had term insurance in place before learning about IBC. However, I made the decision to start policies on my wife and each of my children as a way to set the foundation for our family’s financial future. This approach ensures that my children have a strong starting point when they become adults, and it gives them the flexibility to use the system in a way that aligns with their own financial goals.
Determining how many policies you need for IBC is a personal decision that should be aligned with your long-term vision for your family’s financial future. Starting with one policy is a great way to learn the system, but building a family banking system is about thinking ahead, not just for your own needs but for the generations to come. By setting up policies for your children and potentially even grandchildren, you’re taking deliberate steps to create a legacy of financial independence and growth. The true power of IBC lies in its ability to compound and grow over time, creating generational wealth that continues to benefit your family for years to come.
Leave a Reply