Starting a Bank vs. Starting a Policy (w/ John Hasche)

Most farmers don’t question putting capital into their land, cattle, or equipment. But when it comes to life insurance policies, suddenly they hesitate. Why is that?

In this episode, Mary Jo Irmen and John Hasche dig into Nelson Nash’s classic chapter “Creating a Bank Like the Ones You Already Know” and unpack why starting a life insurance policy isn’t all that different from starting a traditional bank. They break down why capitalization is key, how due diligence sets you up for success, and what it means to be the banker, not just the policyholder.

Whether you're new to IBC or revisiting your strategy, this episode is a must-listen for anyone serious about building long-term wealth the right way.

🔑 KEY TAKEAWAYS

Why capitalization is just as important for policies as it is for farms

How starting a life insurance policy mirrors starting a traditional bank

Why studying the business of banking helps you make better financial decisions

How uninterrupted compound interest builds long-term wealth

Why it's critical to choose the right company and the right agent

What happens when you “lock the doors” on your policy and stop funding it

Why treating your policy like a real business is the only way to succeed

⏱️ EPISODE TIMECODES

(00:00) – Why capitalization is non-negotiable

(00:36) – John Hasche returns to review BYOB

(01:13) – Starting a bank vs. starting a policy

(02:37) – Study the business of banking

(05:19) – Capitalization: why you need to put money in

(07:06) – Qualifying for a policy vs. a bank charter

(08:41) – Picking the right company (location of your “bank”)

(10:22) – Making deposits: keeping your policy alive

(12:03) – Breaking even: 7–10 years for banks and policies

(14:38) – Why whole life insurance is a proven system

(16:01) – Fractional reserve banking vs. 1:1 lending

(19:14) – Lessons from Midland Bank’s collapse

(22:01) – Faith in banks, dollars, and crypto

(23:20) – Why loan repayments are crucial

(25:02) – Your responsibility as the banker

(26:05) – Why policies are boring—and that’s good

(27:05) – How to book with Mary Jo or John

📚 RESOURCES & LINKS 📘 Grab your copy of Farming Without the Bank: 👉 https://www.farmingwithoutthebank.com/book

📅 Read the book? Book a meeting: 👉 https://www.farmingwithoutthebank.com/contact

🎧 Listen to more episodes of the Farming Without the Bank Podcast: 👉 Available on all major podcast platforms

💬 Email your questions: 📨 [email protected]

👍 Follow on Facebook: 🔗 https://www.facebook.com/FarmingWithoutTheBank

🔥 WANT TO KEEP LEARNING? Binge past episodes and learn how real farmers are using IBC to transform their operations. You’ll never look at money the same way again.