Life Insurance Solves Financial Needs far Better than Retirement Accounts

[kimhealth]

@evanburnside12 Don't understand how u can borrow from your policy and still have money that grows. Seems impossible that u borrow at 5 percent from policy and your cash value stays intact and u get 6 percent growth is that true?

 

[evanburnside12]

@kimhealth Yes that's true that's exactly how policy loans work.

That arbitrage is not guaranteed though. But the main idea is that you borrow and your cash value grows uninterrupted.

 

[kimhealth]

@evanburnside12 Whats growing is cash value minus what you borrow or initial cash value stays untouched

 

[evanburnside12]

@kimhealth That's not true. Your cash value remains and grows the same. The policy loan counts against the death benefit. Your cash value is the collateral for the loan.

 

[evanburnside12]

@kimhealth Yes that's true that's exactly how policy loans work.

That arbitrage is not guaranteed though. But the main idea is that you borrow and your cash value grows uninterrupted.