The Disadvantages of Policy Loans from Non-Direct Recognition Companies
Yesterday, we discussed the advantages of using a policy loan over a withdrawal to access your cash value within your whole life policy. Today, let’s look at the disadvantages to using a Policy Loan to access Whole Life Cash value, which are: There is a short term cost for the loan. In normal circumstances, for […]
The Advantages of Policy Loans from Non-Direct Recognition Companies
The advantages to borrowing from your life insurance company to access cash (in other words, to take a Policy Loan) are: Your present and future compounded cash value is not affected by the loan. Your death benefit and growth of future death benefit are not affected by the loan.
Policy Loans
It’s important to remember that a policy loan is a loan from the mutual insurance company from which you get your whole life policy, and not a loan from yourself (as a 401k loan typically is). If you don’t understand this, the following won’t make much sense. We feel like, in most cases, policy loans […]
Accessing Money from a Whole Life Policy
Lately, a few people have asked how policy loans work when you have a whole life policy. We’ll address this in the next couple of posts. There are two typical ways to access cash from your in-force whole life policy when you are still young. There are other ways to get creative, and options that […]
How to Be Your Own Banker With Life Insurance
“Well then, you should have put my money on deposit with the bankers, so that when I returned I would have received it back with interest. 28″ ‘Take the talent from him and give it to the one who has the ten talents. 29For everyone who has will be given more, and he will have […]
Using the Cash Value of Your Life Insurance to Set Your Financial Life Free
“Were you a slave when you were called? Don’t let it trouble you—although if you can gain your freedom, do so.” (1 Corinthians 7:21) The Trunk of your Fruitful Tree gives life to the branches, leaves, & fruit. Without a strong and reliable trunk, you cannot have good, plentiful fruit. The best product we’ve found […]
What Do Banks Buy? (BOLI)
“But wisdom is proved right by her actions.” (Matthew 11:19) Did you know that most financial institutions spend a lot of time and money trying to convince people that whole life is a bad place to hold money? Remember, they spend billions advertising each year, and have an amazing level of control over content that […]
Ben Goes Into Business
Ben was enjoying being a commercial landlord. His decision to make whole life insurance a foundational element of his financial stewardship turned out to be the most important thing he had ever done. Even though he has been totally disabled and lost every asset not protected by law in the lawsuit, he was still able […]