An IBLOC (Insurance-Backed Line of Credit) is a revolving line of credit issued by a third-party bank, using your whole life policy's cash value as collateral. In Policy Stack it appears under Loans with a dedicated Facility panel that exposes the line's credit limit, available credit, and draws ledger.
How an IBLOC Differs from a Policy Loan
| | IBLOC | Carrier policy loan | |---|---|---| | Lender | Third-party bank | Insurance carrier | | Structure | Revolving line | Single advance | | Collateral | Collateral assignment on the policy | Policy cash value (internal) | | Rate | Set by the bank | Set by the carrier | | Repayment | Bank terms | Flexible (you decide) |
The carrier issues a policy loan directly from the policy; an IBLOC is a bank-issued revolving facility that holds a collateral assignment against the policy. Because the lender is a bank rather than the carrier, IBLOC balances are not reported on carrier statements. Maintain them directly on the IBLOC's Facility panel; recording a policy snapshot does not adjust the IBLOC balance.
Facility Panel Fields
- Credit limit — the maximum amount the bank will advance against the collateral
- Advance rate — the fraction of the pledged available cash value that the lender is willing to advance (for example, 85% means the bank will lend up to 85% of the eligible cash value)
- Available credit — credit limit minus the current outstanding balance
- Draws ledger — a chronological record of individual draws, capitalized interest, and fees applied to the facility
The Draws Ledger
Each time you draw on the IBLOC, record it in the draws ledger. The ledger accumulates draws, any capitalized interest the bank adds, and any fees, giving you a running total of what you owe the bank. Unlike a single-advance policy loan, the IBLOC balance can rise and fall as you draw and repay — the ledger captures the full history.
Snapshots Do Not Update the IBLOC Balance
The snapshot loan-balance field records the carrier-issued policy-loan total for that policy. Because an IBLOC is a bank-issued facility that never appears on a carrier statement, its balance is not part of the snapshot. Update the IBLOC directly through the Facility panel, Record draw, Record repayment, or Edit Loan.
If your policy has both a carrier policy loan and an IBLOC, the latest applicable snapshot anchors the carrier policy-loan balance and updates the collateral cash value used to calculate IBLOC LTV. It does not change the separately tracked IBLOC balance.