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In this episode, we ask:

• When are the appropriate scenarios for taking a policy loan?
• Are you thinking like a banker?
• Do you want your income to equal your premium?
• What are the rules of thumb?
  • When should you use a policy loan? Would it take you more than six months to save for that?
    • Why six months? Is that arbitrary?
  • When should you pay cash? Is paying cash better than taking a policy loan?
• What about loan interest?
• How does the dividend date come into play?
• Is there any room left in your policy?
• Do you have the cash?
• How quickly do you plan to pay the loan off? …More than six months?
• What does the room in the policy look like? …What is the best and highest use of that cash?
• Where will your money work hardest for you?
• Why put money into a policy first and then take a policy loan?
• How long does that process take?
• What is “saving on the other side of the purchase” ?
• How is this different from going into debt?
• When is it a good time to break the rules above?
• What are some things you should take loans out for?
  • A phone?
  • A laptop?
  • A health insurance deductible?
  • A down payment on a home?
  • Home remodeling?
  • Car repairs?
  • Large emergency costs?
  • Payroll?
  • Inventory?
  • What is the threshold?
• Are these hard and fast rules?
• What’s the minimum you can repay on the policy loan monthly?
• There are no fees?
• It takes about a week to get policy loan funds?
• You can loan up to roughly 85%-90% of your cash value?
• Is your money sitting still or in motion?
• Do you budget your cash value?
• Are you double counting dollars?
• When should you not take out a loan?
• Have you seen It’s A Wonderful Life?
• Why do banks love your cash value as collateral for a bank loan?
• Have you read the fine print?
• Do you still have questions? Talk with us!