Life Insurance Policy Loans to pay Premiums Should You DO This?
Catch this Special Interview with Alex. Alex contacted our office for some policy reviews after his agent told him \u201clet policy loans pay your premiums.\u201d\xa0 This started in the 90\u2019s.\xa0 20+ years later results are plaintive.
These were (and still are) good policies, but the funding strategy backfired. Policy loans can enable you to take great financial opportunities without giving up guaranteed growth + dividends on your money, and like any good strategy this can be taken too far.
Good rule of thumb for Policy Loans = Make sure you\u2019re always making or saving more money than the interest when you take a policy loan.
Can you use a policy loan to pay a premium if you\u2019re in a cash flow crunch? Of course, just don\u2019t make this your long-term habit. DO make sure you\u2019re always aware of the interest on any and all policy loans that you take.
Plan to review your strategy regularly - about 1x year is a good idea. Contact Life Benefits for a complimentary policy review.