Are you wondering what is a life insurance policy loan, and how can it help you? Or maybe you’re already using Infinite Banking, but would like to explain it better to your spouse, your parents, your children, business partner, or friends.

https://www.youtube.com/watch?v=FrjVeMXW8is

Today, we're unpacking the truth about the Infinite Banking Concept and the power of policy loans. Policy loans are part of what makes the infinite banking strategy work so well. We're answering the most common questions we hear about policy loans, so you can be clear on exactly what they are and how they work. If you're ready to learn more about policy loans and how you can implement them in your own life... tune in now!

Table of contentsWhat is Financing?How Does Infinite Banking Provide a Solution for Financing?How Does Infinite Banking Give You Better Growth and Accessibility?How Does Infinite Banking Compare to Other Strategies for Storing Cash?What is a Life Insurance Policy Loan?How Easy is it to Get a Policy Loan?Do I Have to Qualify for a Policy Loan?What Does a Policy Loan Use as Collateral?How Does a Policy Loan Impact My Cash Value and Death Benefit?Whose Money Am I Using in a Policy Loan?Why is it a Good Deal for the Life Insurance Company to Give You a Policy Loan?How Does My Money Continue to Compound Uninterrupted with a Policy Loan?How Do Policy Loans Give Me More Control and Flexibility?Book A Strategy Call

What is a Life Insurance Policy Loan?A policy loan is money that you are borrowing from the life insurance company, using your cash value as collateral. The life insurance company is contractually obligated to allow you access without qualification to a policy loan. Then, they offer you a loan with an interest rate, which you can pay back at your own discretion (on your own timeline). 

What is Financing?

While people typically think of financing as the process of borrowing money to fund something, we know that you finance everything you buy. The reason is that you’re either paying interest through a loan or line of credit, or you’re passing it up because you’re paying in cash (and losing the money you could have earned elsewhere). 

[2:50] “We finance everything in our lives, and people don’t get that because people say, ‘I don’t have any debt, I just pay for everything in cash.’ Well, Nelson Nash made me realize that paying cash is still financing because you’re giving up the opportunity to make money on your cash that you actually pay. So you’re always financing. You’re either paying interest, or you’re giving up the ability to earn interest”

How Does Infinite Banking Provide a Solution for Financing?

Infinite banking provides the solution to the financing problem by allowing you to create a pool of money that allows you to finance anything you want without passing up interest. So while you may pay interest on a policy loan, you can also earn interest, while also potentially earning cash flow through your investments. Even without investments, though, infinite banking gives you a way to finance your life as efficiently as possible.

The reason infinite banking is so efficient is that, with a dividend-paying whole life insurance policy, you can save money, grow money, and use that money without interrupting your compounding interest. And you can do this thanks to the policy loan provision.

How Does Infinite Banking Give You Better Growth and Accessibility?

Infinite banking puts you in a position where you’re not only storing and growing capital in the policy, but you also have a contractual guarantee to access and use that cash through a policy loan. The policy loan may seem like an unnecessary hurdle to jump through, but by using other people's money (the insurance company's money), you can keep your account earning interest and dividends at its full potential. Not only is this incredibly efficient, but it also provides more certainty and stability than either a bank or the stock mark...