A brief YouTube clip in which Jayson Lowe recommends using a policy loan from a reputable mutual life insurance company (via a participating, dividend-paying whole life policy) to purchase business equipment. He argues this approach lets a corporation borrow against accumulating cash value while maintaining control over repayment and preserving ongoing cash-value growth.
What would you say is the best type of loan to use for business equipment? What would I say is the best type of loan to use for business equipment? A policy loan from a life insurance company, ideally a reputable mutual life insurance company. Now the only way to gain access to loans from a life insurance company is you have to be a participating dividend paying whole life insurance policy owner. Your corporation can be a policy owner. The moment that your corporation does that, that policy begins to accumulate cash value immediately. The company can then borrow against that ever increasing cash value without ever interrupting its growth on its own terms. Meaning the corporation controls the repayment schedule. So the best type of loan one from a life insurance company because it puts you in a position of control over the repayment schedule and you don't interrupt any of the daily growth of your own cash value. That is by far the best loan to utilize to purchase business equipment. Hands down.
