Podcast: Play in new window | Download

Subscribe: Apple Podcasts | Android | RSS

In this episode, we ask:

• What is a policy loan?
• Why do we love the Bank on Yourself® type whole life insurance policies?
• Is a non-direct recognition policy loan the best feature in the financial universe?
• What is a direct recognition policy loan?
• Is there really no difference between the two?
• Does it really matter?
• Why is transparency key?
• What is the history between non-direct recognition and direct recognition policy loans?
• How long have life insurance policies loans been around?
• Over 150 years ago, how did insurers treat these separate loans with distinct interest rates?
• What about collateral?
• What about the life insurance general fund?
• What about using your policy as collateral?
• What about dividends?
• How would the policy continue to earn interest?
• Where is the money for the loan coming from exactly?
• Why did some insurance companies move over to do direct recognition policy loans?
• Why did some insurance companies hold firm with non-direct recognition policy loans?
• What is a mutual life insurance company?
• What about profits?
• Who should logically have a higher dividend?
• Who is penalized?
• Do companies offering direct recognition policy loans offer slightly higher dividends?
• Who is going to have a better experience?
• What good is that cash value if you can’t collateralize it?
• What about the living benefits of life insurance?
• What is outrageous?
• What did Nelson Nash say?
• Who has real liquidity?
• What about direct recognition policy loans for a time horizon (for 10 years, etc.)?
• How about an example?
• What is a 1035 exchange (a like-kind exchange for life insurance)
• Would you like to learn more in Episode 252?
• What happens in a scenario where direct recognition policy loans were taken?
• What happens in a scenario where non-direct recognition policy loans (as in a Bank on Yourself type whole life insurance policy) were taken?
• What about the dollar diagram?
• What about the one dollar?
• What happens if you put this single dollar into a paid up additions rider (PUAR)?
• What about opportunity cost?
• What happens if you spend that dollar instead of saving it?
• What is the interest?
• What benefits you?
• What about dividends?
• How do the insurers earn money for dividends?
• How does that benefit policy holders?
• How much would you have?
• How many dollars…?
• Is there such a thing as paying too much premium?
• How about another example about a policy loan to purchase a car?
• What did the three cars cost you?
• How much did you net in the non-direct recognition policy loan’s policy?
• Knowing all of this, why would you buy a car any other way?
• Should you just get a bank loan?
• What totally defeats the purpose of Bank on Yourself®?
• Are you being penalized?
• Which scenario keeps me more in control of my own money?
• Which scenario yields control to the bank?
• What about Bank on Yourself® policy engineering? 
• Would you like to meet with Mark?
• Would you join us next week?