How Does Whole Life Insurance Work?

Understand the basics of how the cash value works, how to maximize it, and how loans work.

Our company works with individuals and companies who are mainly interested the cash value of a whole life insurance policy. The cash value in a properly designed Whole Life Insurance Policy provides the following benefit:  
  • Safety: Your Cash Value is safe from market fluctuation. The Net growth rate on cash value will likely range between 3-5%, regardless of what happens in the market (based on historical performance).
      • Individuals will often use Cash Value Life Insurance as an alternative to the money they would position in fixed assets or cash. “This is money I know I can count on always increasing and always being accessible.”
  • Liquidity: Your Cash Value can be accessed anytime. Both individuals and corporations are attracted to the loan feature of a whole life insurance policy once it is understood.
      • Your cash value will continue to compound when loans are taken. Example below.
      • You have Cash Value of $100,000 earning 4%. (You earn $4,000 in dividends & interest)
      • You decide to take a loan for $50,000 at an interest rate of 5% (You pay $2,500 in loan interest)
      • Your Cash Value will continue to receive 4% on the full $100,000! (Constant compounding)
  • Tax-Free: Your Cash Value can be accessed Tax-Free anytime. However, it is important to be aware that taxes can occur. The most common tax situation is if a policy becomes a MEC. Learn how taxes can occur and how to prevent them. 

Essential Videos on Cash Value Life Insurance

Do THIS & You'll Have a Lot of Money with Whole Life Insurance

How To Maximize Your Cash Value in Whole Life Insurance Policy!

This is How Loans Work With a Whole Life Policy

A Deep Dive into MECs (Non-MECs, Taxable Events & more!)

A Deeper Dive into MECs (Material Change, Setting Limits & more!)

Borrowing From Your Policy: When it DOES & DOESN'T Make Sense

What Does My Broker Agent Make In Commissions?

Does Maximum Cash Value Mean Minimum Commission?

THIS is Why Most People Don't Like Whole Life Insurance!

3 SIMPLE Steps To Build An Insurance Policy

Do it Yourself: Build Your OWN Insurance Policy!

Copy The Wealthy: How Much Can You Fund? How Long?

Recession, Market Crashes & Financial Uncertainty - What is Whole Life's History?

Commonly Asked Questions

What Happens to my Cash Value When I Die?

What Happens if I Don't Max Fund My Policy?

How Long Should I Fund a Policy?

THREE Common Questions People Have About Whole Life Insurance

What's The Difference Between the Guaranteed & Non-Guaranteed Column?

Do I Have to Pay Loans Back?

How and When are Dividends Paid?

I'm 74. Would This Work for Me?

Do I Have to Pay a Monthly Fee?

Can You Lower Your Commission to Increase MY Cash Value?

Policy Loans: Commonly Asked Questions

How Much Death Benefit Can You Be Approved For?

Which Has More Cash Value? 1 Policy? Or Multiple?

About IBC Global

Our mission is to provide transparency around whole life insurance and how the cash value works. We work with individuals, small businesses, and banks interested in high cash value life insurance. Our goal is to help our clients select the right insurance company, maximize cash value, and provide white glove service when they use their policy.