Episode #131 Everything You Need To Know About Policy Loans & Interest

<p>Book a Free IBC Consultation Call <a href="https://calendly.com/shawnksfg/infinite-banking" rel="ugc noopener noreferrer" target="_blank">⁠⁠⁠⁠⁠⁠(Click Here)⁠⁠⁠⁠⁠</a></p><p>Visit my website by <a href="https://legacylifeandretirement.com/" rel="ugc noopener noreferrer" target="_blank">⁠⁠⁠⁠⁠(Clicking Here)⁠⁠⁠⁠</a></p><p><br /></p><p>Learn how we create income from anywhere in the world by earning 1% a week compounded on our money. Believe me we are normal everyday people, if we can do this you can too <a href="https://lowstresstrading.com/options?ref=LEGACYLIFE&amp;url=lowstressoptions.com" rel="ugc noopener noreferrer" target="_blank">⁠⁠⁠⁠⁠⁠⁠(Click Here)⁠⁠⁠⁠⁠⁠⁠</a></p><p>Follow our Low Stress Trading Journey: <a href="https://www.youtube.com/playlist?list=PLPFOpSOEjJzQ9JJogyN2T2OXAF1oJvhXK" rel="ugc noopener noreferrer" target="_blank">⁠⁠⁠⁠⁠⁠⁠(Click Here)⁠⁠⁠⁠⁠⁠⁠</a></p><p>📞 Book a call to talk about LSO with us: <a href="https://calendly.com/shawnksfg/let-s-talk-low-stress-options" rel="ugc noopener noreferrer" target="_blank">⁠⁠⁠⁠⁠⁠⁠(Click Here)⁠⁠⁠⁠⁠⁠</a></p><p><br /></p><p>Why would anyone borrow against a whole life insurance policy at 5% when a bank might offer financing at 2.9%?</p><p>In this deep-dive episode of The Cashflow Chronicles, I break down policy loans versus traditional bank loans and explain why comparing financing based only on the advertised interest rate can completely miss the bigger picture.</p><p>We cover how policy loans actually work, why you are not borrowing your own money, how your cash value serves as collateral, and why policy loans generally do not require traditional credit underwriting, hard credit inquiries, or a conventional amortization schedule.</p><p>I also explain the difference between policy loan interest charged in advance versus arrears, how principal repayments can reduce your total interest cost, what happens at your policy anniversary, why I recommend paying policy loan interest out of pocket, and how unpaid interest can eventually cause a policy loan to snowball.</p><p>Then we go deeper into Nelson Nash’s ideas of being an honest banker and understanding that you finance everything you buy. We compare policy loans with credit cards, personal loans, auto financing, and paying cash, including the opportunity cost most people completely ignore.</p><p>Most importantly, this is not an argument that policy loans are always better than bank loans. If someone offers you 2.9% financing and the overall terms make se