The Family Bank concept involves purchasing a specially designed whole life insurance policy that accumulates cash value over time. Policyholders can borrow against the cash value, using it for investments, purchases, or other needs, while still earning dividends on the full value of the policy. This strategy aims to provide financial flexibility and long-term growth, acting as a self-financing system where individuals can essentially "become their own bank" instead of relying on traditional banks or lenders.