Richard CanfieldPodcast Host and IBC Advisor, Ascendant Financial · Authorized Infinite Banking Practitioner | Author of 4 Books

Your Policy Could Lapse: The IBC Loan Risk Nobody Talks About

19 Jun 2026 · 2 min

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2:17

In this brief conversation, the presenter explains that while policy loans offer flexibility—allowing the borrower to set their own repayment schedule—they also carry significant risk if not managed responsibly. Unmanaged loan balances that grow larger than the policy’s cash value can cause the life insurance policy to lapse, which may trigger tax liabilities on any gains inside the policy. The speaker emphasizes that coaching can provide guidance, but ultimate responsibility for loan management rests with the policy owner, and disciplined repayment habits are essential. The segment concludes with Richard Canfield promoting a 7‑step educational program (available at 7steps.ca) designed to teach individuals how to become their own banker using these concepts.

Chapters

Because if you don't repay a loan, the loan keeps going up with interest, just like any— Yeah. Policy loans, we've been talking about this so much over the years. They're not like bank loans where someone's calling you every month demanding payments. If those payments aren't flowing in, there's total and absolute control. There's a lot of flexibility. But I've been sharing for years, probably much like you, Rich, is that flexibility should not be confused with irresponsibility. If unmanaged loans grow too large relative to the policy values, so you have ever-increasing cash value, you have an ever-increasing policy loan balance in tandem with it, the policy could eventually lapse. And if a policy lapses with gains inside of it, there could be tax consequences. And that's why proper coaching and ongoing management matter. Now, if you're working with a coach, the coach is responsible to you, not for you. And the ongoing management is yours. That's your responsibility. And a policy loan is, again, it's a financial tool. And like any tool, I think wisdom matters more. than enthusiasm. And so really understanding that, yes, you control the repayment schedule, but that comes with responsibility. And how you do anything is how you do everything. And so if you're already very financially responsible, you have a track record and a clear understanding of the advantages of repaying your loans to other lenders on time, all the time. Then you're likely going to do just fine with the responsibility and flexibility of policy loans.
Okay, you want to learn how to implement the process of becoming your own banker? It's easy. We put it together in 7 steps, the exact educational path you need to be successful in this process. Go ahead, go to 7steps.ca. That's 7steps.ca and get your copy of the report right now.