Jayson Lowe explains why policy loan rates from Canadian life insurers matter less than where your money actually goes. He breaks down rates from 4.5% to 8% across carriers and argues the real win is keeping money inside the insurance company instead of paying external lenders.
As low as 4.5% and as high as 8% (per speaker).
March 1, 2023.
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.
