In this episode of the Infinite Mindset Podcast, Andy, Jared, and Scott dive deep into policy loans—what they are, how they work, and why they can be a powerful financing tool when used correctly. Along the way, they break down common misconceptions, compare policy loans to conventional debt, and share real-world insights.

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Loan math:

Daily interest accrual:

Loan Balance x (1/365) x interest rate

True Interest Cost:

Total Quantity of Dollars Paid in Interest / Principal Amount of Loan x 100% 

Total Quantity of Dollars Paid in Interest:

[ (Monthly Payment x number of Payments) + fees + pain of enduring underwriting ]- cash price

Examples:

Daily Interest- $10k x 1/365 x 0.05 = $1.3698 ($1.37 per day when rounded)

True Interest-

#1 $10k x 0.06 x 365/365 = $600 or 6%

#2 $10k x 0.06 x 183/365 = $300.82

     $5k x 0.06 x 182/365 = $149.59

     $300.82 + 149.49 = $450.41 or 4.5%

#3 $10k x 0.06 x 304/365 = $499.73 or 4.99%