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 […]
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 […]
What Happens if Foreigners Don’t Want our Dollars Anymore?
Even with the devaluation of our currency over the decades, the US Dollar is still the world’s reserve currency today. People have felt for many years that it’s a safe place to hold their wealth. Foreign governments hold their wealth in US Dollars. Financiers the world over have done the same. Even most commodities are […]
One More Word on Whether or Not the Economy Can Improve
Yesterday, we spoke of the possibilities for improvement in our economy- as well as barriers which could make the normal ebb and flow of recession and growth difficult. For many decades, the government has been using the mechanism of interest rates to influence the economy. In each cycle that has occurred in the past, the […]
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 […]
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 […]
A Real Whole Life Policy’s Returns
“If you are willing and obedient, you will eat the best from the land” (Isaiah 1:19) We became frustrated that the companies were showing such an artificially low projection (as we discussed in the last Whole Life Insurance post) while knowing that they had historically performed much better. So we went to one of the […]
Ben Doesn’t Have Any Extra Money, So How’s He Going To Fund His Whole Life Policy?
It’s one thing to decide that you love what a whole life policy can do for you, but it’s a whole other thing to find the money to pay for it. Ben was perplexed by this. For years he had done what all the financial talking heads said to do with his money, but he […]