Episode 206: Bank on Yourself® Type Whole Life Insurance Policy Loans vs. Everything Else, Round Two

In this episode, we ask:

• Have you heard the first episode in this series, Episode 205?
• Which is better: a 401(k) loan or a whole life insurance policy loan?
• How many of 401(k) investors have an outstanding loan?
• Should the 401(k) loan be the first choice or the last choice?
• What is the process for getting a 401(k) loan?
• What are the 13 steps?
• How long does it take to get a 401(k) loan?
• What happens with a whole life insurance policy loan?
• What are the limits?
• What can you use the money for?
• What do the proponents of the 401(k) loan say?
• Are 401(k) loans a taxable event?
• Are taxes due?
• How will you be repaying that 401(k) loan?
• Will you pay taxes twice?
• What’s your bracket?
• Have you seen the show notes on Episode 110?
• What happens if you borrow from your 401(k) and you lose your job?
• How fast must you repay that loan?
• What about taxes and penalties?
• What are the required repayment plans?
• What about a home equity line of credit (HELOC)?
• What about tapping into the equity of your house?
• What about the requirement of making regular payments?
• What about pledging your home as collateral?
• What about a higher interest rate?
• What about HELOC vs. whole life insurance policy loan?
• Is the house value guaranteed to grow?
• Are whole life insurance cash values guaranteed to grow?
• Could you lose your home if you don’t pay off the HELOC?
• What is collateral in a whole life insurance policy?
• What about a court judgment?
• What about credit ratings?
• Can a banker call your HELOC?
• What is the fine print in the HELOC?
• Can you count on the HELOC?
• Is it possible to default on a whole life insurance policy loan?
• What happens when the loan value is the same as the cash value?
• How might you avoid policy lapse?
• What happens to the death benefit on a whole life insurance policy that has unpaid loans?
• Would you like to hear Episode 203?
• What about loaning from a brokerage account?
• What is a margin loan?
• Can the broker call the margin loan?
• What about locking in losses?
• What is liquid?
• Is there a repayment schedule on whole life insurance policy loans?
• What did Mark Twain say?
• What about life insurance loans vs. whole life insurance loans?
• Can you borrow from a term insurance policy?
• What about universal life insurance?
• Would you like to hear Episode 59? Episode 60? Episode 61?
• What about the monthly costs on universal life (UL) and indexed universal life (IUL) policies?
• What significant changes happen in these policies?
• What are the risks to taking loans on a IUL or UL policies?
• What happens when closing IUL or UL policies?
• What are the tax consequences?
• What about variable life policy loans?
• What are the risks?
• Will the policy lapse?
• What about the phantom income?
• What about the moving parts?
• Why are whole life insurance policy loans so much safer?
• What is on the insurance company’s shoulders?
• What about the guarantees?
• What is not guaranteed?
• Can the insurance company change the costs on the policy?
• What about annual cash value increases?
• What about the death benefit?
• What about the premiums?
• What about the dividend paying whole life insurance policy?
• How might dividends make the situation even better?
• Who does the dividend benefit?
• What about minimum guarantees?
• Is a Bank on Yourself® whole life insurance policy part of your overall strategy?
• What about the death benefit?
• What about the living benefits?
• What about the loan feature?
• What about tax advantages?
• What about security?
• What about guaranteed growth?
• Would you like a 15-minute meeting with Mark?