The TRUTH about Life Insurance Loan Interest Rates in Canada

13 Apr 2023 · 1 min

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Jayson Lowe (video uploader) explains that Canadian life insurance policy loan interest rates vary by carrier — quoted as low as 4.5% and as high as 8% — but argues this misses the key point: the important question is where the money flows and who it is put to work for. He emphasizes that by using the policy-loan process you become, in effect, a co-owner of the insurance company; thus the focus should be ownership and internal circulation of funds rather than the headline interest rate.

Questions this video answers

As low as 4.5%, as high as 8%.

April 13, 2023.

Chapters

How much interest does a life insurance company charge the policy owner to have a policy loan issued? My answer is not enough. Rates do vary by carriers here in Canada. As low as 4.5%, as high as 8%. But a fatal error of the thinking as it relates to the process of becoming your own banker is that this is a function of rates. It's all a matter of where the money is flowing to and who that money is being put to work for. Because when you implement this process, you become a co owner of the insurance company. So something to think about is that if you and I co owned a grocery store together, would we ever buy our food from anyone else's grocery store? It's not about the rate, it's a function of where the money is flowing to and who it's being put to work for.