• Under the Hood: Policy Loans

  • Sep 20 2024
  • Length: 42 mins
  • Podcast

Under the Hood: Policy Loans

  • Summary


  • Why do the ultra-wealthy play by different financial rules? Because they create the rules for both us and them. Brian and Hans discuss policy loans, a cornerstone of the Infinite Banking Concept that most financial advisors never mention. What exactly happens when you borrow against your own life insurance policy, and why is it more powerful than any other lending mechanism?


    They unpack how policy loans can provide unparalleled financial flexibility, allowing you to access capital without the red tape of banks or the prying eyes of lenders. Learn how smart investors are using this to fund real estate deals, start businesses, or create generational wealth - all while their original capital continues to grow uninterrupted.


    In this episode

    • Policy loans offer unparalleled flexibility and control: Policy loans from whole life insurance policies allow you to access your money without underwriting, questions about usage, or set repayment schedules. This gives you significant financial flexibility and control over your capital.

    • Policy loans have unique repayment advantages: Unlike traditional loans, 100% of policy loan repayments go toward the principal. Interest is calculated separately and added to the loan balance annually. This structure can make policy loans more efficient than traditional amortized loans.

    • Policy loans don't interrupt the growth of your cash value: When you take a policy loan, your cash value continues to grow uninterrupted. The loan is made against your cash value as collateral but doesn't actually withdraw from it, allowing for continuous compound growth.

    • Policy loans can be a powerful tool for wealth building: By using policy loans strategically (e.g., for investments or major purchases), you can potentially create a "multiplication effect" where your money works in multiple places simultaneously. This can be more efficient than traditional saving or borrowing methods.



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