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aboutfixedloan

All About The Fixed Loan Rate

Fixed loan interest rates are common among many insurance companies. Fixed loan rates are much easier to understand as the term “fixed” means just that – the rate is fixed and will not adjust.  With that said, it is beneficial to be aware of what features exist with policies that carry a fixed loan rate.    Most companies/policies that have a fixed loan rate usually have a rate …

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What Is The Loan Interest

What Is The Loan Interest Rate? 

The loan interest rate on a policy will vary depending on the company. Typically, interest rates will vary from ~5% – 6% with most insurance companies, although some companies still carry an 8% loan interest rate.  Most Insurance policies offer a fixed or variable rate.  Some companies offer both, but the policyholder must select whether we want a fixed or variable rate when starting a policy. Once a policy is established, most companies do …

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Life Insurance Policy Loans

How Interest Works on Life Insurance Loans 

Interest on life insurance loans accrues at  daily, or at  annual simple interest. Let’s break this down…  We’ll start with annual simple interest. If one takes a life insurance loan out, the insurance company will charge simple interest for an annual term. Then we have the daily accrual. This can cause concern for any consumer when we hear the term “daily …

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Life Insurance Policy

When Can I Take a Loan From a Life Insurance Policy?

Loans typically can be taken from a life insurance policy at anytime.  With that said, it is always important to check the insurance company you are considering, as some companies do not allow loans to be taken in the first policy year. The insurance product we select is also important. For example, survivorship policies are sometimes …

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Infinite Banking Concept

All About The Infinite Banking Concept & Cash Value Life Insurance

This article is meant to highlight the basics of both the Infinite Banking Concept & Cash Value Life Insurance.   The Infinite Banking Concept was created by Nelson R. Nash. His book, “Becoming Your Own Banker,” teaches one how to use a dividend-paying life insurance policy as a financing tool. We’ll often relate this to real estate, as many …

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Whole Life Insurance

Key Elements to Maximizing a Whole Life Insurance Policy

Whole Life Insurance is a product that has been used by banks, corporations, and the wealthy for centuries.  Many have heard great things about it, but when presented with a Whole Life policy, the numbers look awful! Most Whole Life Insurance policies have $0 cash value in the first two years of a policy. Many Whole Life Policies described …

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