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

How Do You Use a Policy Loan to Buy Dividend Stocks? #dividendstocks #infinitebanking #shorts

24 Sept 2026 · 1 min

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1:03

In this short dialogue, an advisor (Speaker B) walks through how a financial professional would discuss using a life‑insurance policy loan to buy dividend‑paying stocks or fund a DRIP portfolio with an existing client. The conversation outlines the typical client profile—someone who has already built cash value of $50‑$100 k in a whole‑life policy, has cleared other debts, and is considering how to deploy that capital. The advisor stresses the importance of first determining a safety reserve: a portion of cash value that should never be borrowed against. He suggests waiting for the right opportunity, evaluating the client’s interests and expertise (e.g., business expansion), and then deciding whether a policy loan is appropriate for buying dividend stocks. The overall tone is conversational and instructional, with a measured, cautiously optimistic sentiment toward using policy loans responsibly.

Chapters

Walk us through an example of how someone could use a policy loan to buy dividend-paying stocks or fund a DRIP portfolio. So someone comes in and they, they're having a conversation, they say they want to do that, maybe they're an existing client. How would you begin the process of discussing that with them?
First of all, you just got to figure out where people are. So let's say they're an existing client and they've understood the concept of infinite banking, they started a policy and they've been building it, and it's got, you know, they've taken care of some debt and they're now in a position where Hey, I've got this capital, I've built up $50,000, $100,000 of cash value. And now what do I do with it? Right? I don't have any more debts to pay off. And it's just kind of sitting there. And the answer is, maybe you shouldn't do anything with it. Just wait for the right opportunity to come along. But on the other hand, what do you enjoy doing? What do you understand? For some people, that might be investing in a business that they know about, or they're a business owner, and they could expand their business, they could buy another business that's similar. I would say, you know, we've got this capital, let's talk about what's a safety level for you. There's amount of cash value we never want to borrow against.