The Living Benefits of a Life Insurance Policy
People often ask us how a life insurance policy, meant to provide a death benefit, can be turned into a personal or business-owner’s bank. Think of it as the owner – of a well-funded, properly structured, dividend paying, Whole Life insurance contract – taking advantage of the living benefits available to any policy holder. These living benefits allow you, the policy owner, to take out loans with the surrender value of the policy operating as collateral.
The life insurance company is advancing you a loan, at a specified rate of interest. Yet your policy continues to grow in value in a number of ways. You pay interest on your loan, to yourself versus a bank, and dividends are paid into your policy annually. While dividends are not guaranteed, life insurance companies in Canada have paid dividends for as long as they’ve been in existence.
Give us a call today to learn more about how to become your own banker through the Infinite Banking Concept.