Jayson Lowe explains why you can't borrow against a 20-year term policy: term insurance has no cash value, only a temporary death benefit. Less than 2% of term policies ever pay out. Whole life policies with dividends build value you can actually borrow against.
I have term policy 20 years. How will that work? Can I borrow against this policy? No. When you have a term life insurance policy, you're renting a death benefit. It's the most expensive insurance you can own, because as you're aging, the cost of that premium keeps going up because you keep getting closer to your projected death date. And that day will come. Everyone on the webinar has a best before date. We just don't know what that is. And so it's interesting that less than 2% of term policies ever pay out a death benefit. And so that creates an enormous pool of money for the insurance company to multiply. And the sole beneficiaries of the multiplication of that money are the participating dividend paying policy owners. No one else benefits from that. And so ask yourself this question. Would you rather want to rent a benefit or own it?
