Jayson Lowe warns that policy loans can be dangerous when borrowers lack discipline. Having control over repayment schedules means bad borrowing habits can carry over to loans against your life insurance, potentially undermining the policy's value.
Being in control could be a bad thing too. If you don't have a disciplined approach, how you do anything is how you do everything. And so controlling the repayment schedule of a policy loan is both good and dangerous if you have an irresponsible borrower. If you're irresponsible at borrowing from someone else's bank and you begin to borrow from the life insurance company that you co-own, and you know that you're in a position of total and absolute control as it relates to the repayment schedule of that loan, Wherever you go, you take all of you with you. And so that bad habit or absence of discipline is going to transfer to the borrowing activity that you control. Want to learn more? Head over to learnwithjay.com. That's learnwithjay.com.
