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

Dave Ramsey Reaction to Whole Life Insurance 😯🤨 Richard Canfield and Jayson Lowe

11 Nov 2023 · 0 min

Watch on YouTube

0:05

Transcript excerpt from a YouTube video in which Richard Canfield and Jayson Lowe debate the nature of "cash value" in whole life insurance. Canfield argues that taking policy loans uses the cash value and the death benefit pays off loans at death (leaving tax-free proceeds), while Lowe counters that cash value is not cash but the net present value of a future death benefit.

My point is 100% of the time, by definition, you lose the cash value.
Dave, you're wrong. And it bears repeating. Cash value is not money. It is the net present value of the future payment of a death benefit. Period.
Yeah, if you, if you've taken policy loans against the policy and you've used them for a bunch of things in your life and you pass away, the death benefit extinguishes those loans. Ergo. One way of looking at it would be that you utilize the cash value's resources, the, the collateralization of that cash value throughout your life's needs. And you still, because you, you borrowed against it to do whatever you wanted to do, the death benefit comes out, it pays out the policy loan. There's still tax free money left over. In essence, you didn't lose anything because you used everything.