CalvinT

Well if you have the right kind of Whole Life insurance policy, (Participating, non-direct recognition, with Paid up Additions rider) When you borrow money from it the amount you borrow does not affect your gains in the policy.

If you have a 100K cash value, and you borrow the entire 100k, YOU STILL MAKE DIVIDENDS AND INTEREST ON THE 100K even though its no longer physically in the policy. And you are paying yourself back the interest, and you have a death benefit, and if you file bankrupty life insurance is protected, and.......... I could go on but you get the point.

If you borrow 100K from your savings, poof no more gains, if you borrow 100K from the bank you are paying them.

As I have stated before and I reiterate again, not all life insurance policies are structured this way, in fact a very small percentage are set up this way because it does not benefit the insurance agent to write a policy with the Paid Up Additions rider.

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CalvinT

Well time to bang on the ole BOY bandwagon again, even after this glorious week in the markets and a worldwide credit crisis my BOY hasn't lost a cent, In fact I am considering making a withdrawal and purchasing one of these cheap houses in my area.

Hope everyone is doing fine.

Learn about monetary policy
Money, Debt & Inflation

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