How Does a Policy Loan Work?
When you take a policy loan, most companies will immediately charge you the cost of interest for the rest of your policy year. In other words, if you are 3 months into a new policy year and take a loan, you will be charged up front for nine months of interest. If you decided to […]
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 […]
What is the Proper Allocation of Reserves?
It’s impossible to give a one size fits all opinion on the best allocation and diversification of your Reserves. It’s best when we work together to determine this based upon your personal situation as well as which of the savings vehicles that you feel best suit you after you understand the advantages and disadvantages of […]
The 5 Tiered Savings System We’ve Already Established
When building a strong Trunk for your financial tree, you establish a 5 Tier System: Tier 1 – Your Cash on Hand. We’ve discussed potential reasons that the banking system which has been strong your whole life could experience a momentary collapse. This happens throughout the world when a system experiences extreme conditions. The question […]
Becoming Your Own Banker Videos
We’ve just finished a huge series on how to use Whole Life Insurance policies to provide a foundation for wealth building. One of the key benefits that we discussed was the way that you can apply banking principles to your own life and keep the massive profits that you are currently giving to an outside […]
Ben’s Storehouse
Life could not be stranger. Just a handful of decades before, this world really had Ben and Kim on the ropes. Now they had begun a small dynasty. Not the kind of dynasty focused on itself and growing its own power. Such things are destined to crumble and lose all value. But instead they built […]
Ben Loves His Family
The years had been good to Ben. He couldn’t sit still and do nothing, so over the decades he put together a business venture here and there, sometimes using his cash, sometimes using policy loans from his whole life insurance policies. Ever since his accident he had really depended on the Lord for wisdom and […]