Richard CanfieldPodcast Host and IBC Advisor, Ascendant Financial · Authorized Infinite Banking Practitioner | Author of 4 Books

Are You Being Loaned Your Own Money in Life Insurance? 🤔😥

26 Oct 2023 · 1 min

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When you borrow against a life insurance policy, you're actually borrowing the insurance company's money, not your own premiums. Your cash value serves as collateral and keeps growing, but the loan creates a lien that reduces what your beneficiaries receive after you die.

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Understand that you're not borrowing your own money. Your money is paying premium. The money you're borrowing is the insurance company's money, and that's an insurance company that you co own. So you're not being lent your own money. Your policy's cash value serves as collateral for the money that you're borrowing, and all of your cash value continues increasing daily without interruption, uninterrupted by the policy loan that you've taken. The loan balance is a lien on the death benefit of the insurance policy, so not if, but when you die, the insurance company is going to subtract the loan balance from the total death benefit and the residual balance is going to be paid to your named beneficiaries income tax free.