Differences Between a Policy Loan and Withdrawal
I know many people have had the concern when it comes to taking a loan from their policy. Typically, loans have a bad connotation. But that is because taking a loan from your neighborhood bank ends up losing you money. Taking a loan from your policy, however, ends up doing the exact opposite. So around here, we encourage you to take loans because we love making you money!
You may be wondering how that is even possible, or why, since it’s your money, you can’t just withdraw the money you need from your policy. The answer will require you to train your brain to think differently about money than you ever have before. But that’s okay. This is where the shift happens and this is where your journey to financial freedom can begin.
How Traditional Financial Institutions Work
You work, get paid, and deposit some of your income into your bank account. And for convenience sake and for some perks like online access, you’ve got yourself a system that you’re happy with.
Now, when you’ve got something you need to purchase or finance, you take some of that money out in the form of a withdrawal.
Look at this example to see why that system doesn’t make sense when you have your policy as an alternative:
Let’s say you have $1000 in your bank account and you withdraw $500 to pay some bills. Now you’ve lost all the perks and benefits (such as interest earning potential) of having that $500 still in the bank. You’ve interrupted the compounding interest. And essentially lost money by utilizing the typical withdrawal method.
The Better Alternative: Your Policy Contract
When you pay your premium deposits, your money is safe in your policy’s cash account. Then, when you decide you want to take money out of your policy to pay for something, the insurance company sees that you have the collateral of your policy to back up your need. Because of this, they loan you some of their money.
That’s right. You’re not withdrawing any of your money, so you’re not interrupting the compounding interest. Your money in your policy is still earning interest, even while you take out a loan. And the minimum guaranteed growth rate is 4%. So not only is your money earning more in interest than it would in a traditional banking system, you also never lose the money within your policy, even if you take a loan.
You haven’t stopped your dollars from growing!
Rest Assured
Like I said before, this concept will take some getting used to. It’s not often that something that is “too good to be true” is actually TRUE.
But this, my friend, is one of those times.
Your money in your policy is still your money. You can use it whenever you like, just as you would use money that’s been deposited into your bank account. But with The Money Multiplier Method, you can borrow that money, while never taking away it’s ability to earn 4% interest within your policy.
And the market trends? They no longer matter. Your policy keeps growing steady at a 4% minimum. So go ahead, take a loan from your policy. And watch the money keep flowing.
When you’re ready to get started on creating your financial legacy or if you have more questions, most questions can be answered by watching this video. Start there and then schedule a consult with my team when you’re ready to begin.
