Policy Loans for Investments

This screen provides a graphic illustration to convey the concepts involved in utilizing a policy as collateral for an investment opportunity.

Let's start with the assumption that we have a permanent life insurance policy that is funded at a level to increase cash value. [click]

When sufficient collateral capacity exists, there are typically no restrictions on the purpose of policy loans. [click]

Policy loans are collateralized against cash values. [click]

Loan payments are made to the company that provided the loan, not the policy itself. [click]

Internal growth and additional contributions are the components that increase collateral capacity. [click]

Leveraging access to capital has a potential for increased return from an investment opportunity.

No math is presented on this screen.