Sarah and her husband use a life insurance policy to borrow against for five annual expenses, then repay the loan by saving throughout the year. The strategy requires maximizing optional deposits to the policy and changing spending habits to make it work.
It's about becoming your own banker. So it took a bit of work for Sarah and her husband to think about how they're going to do this, but they looked at the value that it was going to bring to them and their family, and they said, yeah, we can make some adjustments in how we're spending our money. We're going to work at getting access to as much as we can each year so that we can put it in as optional deposits into our policy first and then borrow it out, and then pay it back by saving for next year's payment. So they started to do that for these 5 costs. This is what their plan looks like now. Now, just so you know, in the conversations I'm having with her, I said that, you know, we're going to focus on the first 5 years because people can relate to that period of time.
