What Is an IBLOC

An IBLOC — Insurance-Backed Line of Credit — is a line of credit issued by a third-party bank using your whole life policy's cash value as collateral. The two providers most users encounter are Inclined and Bancorp, but the same pattern applies to any bank offering this product.

IBLOC vs. Carrier Policy Loan

| | Carrier Policy Loan | IBLOC | |---|---|---| | Lender | Your insurance carrier | A third-party bank | | Collateral | Your policy's cash value | Your policy's cash value, assigned to the bank | | Visible on carrier statement | Yes — as a policy loan balance | No — the carrier sees a collateral assignment, not the line balance | | Repayment terms | Set by the carrier; flexible | Set by the bank; varies by lender | | Interest rate | The carrier's policy loan rate | The bank's variable or fixed line rate | | Multi-policy | One loan per policy | One line can be collateralized by multiple policies |

The defining difference: the carrier doesn't know what your IBLOC balance is. The carrier knows the bank has a collateral assignment on the policy, but the line's current balance is between you and the bank.

How Policy Stack Tracks IBLOCs

In Policy Stack an IBLOC is recorded as a loan with loan_source_type='ibloc' and no policy attached at the loan level (policy_id is null). Because an IBLOC can span multiple policies, the line itself isn't tied to a single policy record; you record the collateral policies separately when you set the IBLOC up.

Why the Distinction Matters

Two consequences flow from this design:

1. Snapshots report carrier loans, not IBLOC balances. The latest applicable snapshot anchors the carrier-issued policy-loan balance for that policy, and it cannot report or change the bank-issued IBLOC balance. See How IBLOCs Interact with Snapshots.

2. IBLOC LTV is computed against collateral CV. Even though snapshots don't adjust the IBLOC balance, they still affect IBLOC LTV indirectly — the line's LTV is its current balance over the cash value of the policies pledged as collateral. Logging snapshots keeps the denominator current.

What Policy Stack Records About an IBLOC

When you add an IBLOC, you capture:

• The bank that issued the line
• The current outstanding balance
• The interest rate
• The collateral policies (one or more)
• Optional account details for your reference

These values feed the Loans & Leverage totals, the facility's available-credit and LTV displays, and Net Worth as a banking-system liability. Per-policy Net CV remains based on the carrier policy-loan balance recorded for that policy; it does not subtract the separate IBLOC balance.

Recording and Characterizing a Draw

Use Record draw in the IBLOC Facility panel to add a draw. Use Record interest / fee for capitalized interest or fee adjustments. For a draw, you can answer What was this draw for? by choosing Deployed into an asset and selecting the recorded asset, or by choosing Personal use, selecting a purpose category, and optionally adding a note.

The draw updates the tracked loan-account balance and creates a Loan Disbursement row in the Banking Ledger. To correct only what the draw was for, open that ledger row's actions menu and choose Edit characterization. You can switch between an asset link and personal use without changing the recorded amount or account balance. If the existing asset link has recorded cash flows or repayment allocations, Policy Stack shows those counts and asks for confirmation before unlinking it.

Funding a Deployment with an IBLOC

When you record an asset funded by an IBLOC, the Add Asset wizard's Step 4 (Funding) lets you pick the IBLOC as the funding source. Policy Stack uses the IBLOC's rate when computing the deployment's spread, so your blended cost math reflects the bank's rate, not the carrier's.

If you skip the rate on the IBLOC, the deployment is excluded from blended-cost calculations.