How Banks De-Risk Their Own Lending

Why is it that banks will give 100% on cash value? They know the asset class.

They know that the insurance company itself is guaranteeing the collateral. They've de risked the lending to the greatest extent possible. There wouldn't be any other instrument, even cash, that's on deposit. They don't hang on to that stuff when the banks receive money. Let's even just call it real money. They don't hang on to that stuff when they receive keyboard generated capital. It's just digits. It's just binary. It's created where no money existed before. Most advisors have no idea. Idea. Cash value is not money. It's equity in a contract. It's whatever could have otherwise been lent. That's all that cash value is. It's not money. Not when you're dealing with a dividend paying whole life insurance contract.