Thank you, this is something agents get wrong ALL the time. It’s works just like a HELOC. You’re not borrowing your own money, you’re collateralizing your properties value, against a bank loan of their money. For this reason your your property continues to accumulate any growth in equity. Same in a policy. Also just like real estate, there’s are closing costs that need to be paid up front, which is why you turn a negative internal rate of return in the first 1-4 years.
Bryan-omwq
Borrowing "FROM" your policy = bad
Borrowing "AGAINST" your policy = good
I agree.
And, TBH, if we want to improve our language, we also need to make things easy to understand. I think people get it wrong because borrowing against your policy is confusing to new people.
Borrowing "FROM" the insurance company feels easier to understand and, in my opinion, is even more definitive and accurate.
AndAsset
THANK YOU! I’m a new agent and I never understood how people can say that you’re paying yourself interest back. I’m certainly not going to present it like that.
