IBLOC (Insurance-Backed Line of Credit)

An IBLOC is a line of credit issued by a third-party bank using your whole life policy's cash value as collateral. It is distinct from a carrier policy loan: the lender is a bank, not the insurance carrier, and the loan terms (rate, repayment expectations, collateral assignment) are set by the bank.

When selected as the funding source for a deployment, Policy Stack records the IBLOC's interest rate so spread calculations reflect the bank's rate rather than the carrier's policy loan rate. If you skip the rate, the deployment is excluded from blended-cost math.

Because the lender holds a collateral assignment on the policy, IBLOC balances may affect what the carrier will lend against the same cash value. Policy Stack tracks IBLOC-funded deployments separately from carrier-policy-loan-funded deployments so the funding mix is visible in your banking system view.

Related terms: Policy Loan, Cash Value, Capital Deployment