Loans Against Cash Value

Very simply. They borrow money from the fed at .25% and lend it at 2.5%. The spread is their profit. Many banks lend money to their high net worth clients at those rates.
 
Very simply. They borrow money from the fed at .25% and lend it at 2.5%. The spread is their profit. Many banks lend money to their high net worth clients at those rates.

You're talking like eight figure net worth?
 
Yep, the more money you have the better deal you can get when it comes to finance. In investment terms its called "breakpoints". In real life its called leverage.

If you net a 2% profit on a $1000 loan you make $20.
If you net a 2% profit on a $10mm loan you make $200k.

Thats why jumbo CD rates exist, jumbo loans, Premium Banded Rates on Annuities, etc. Its why an investment advisor will charge around 0.25% on a $50mm account but 1% or more on a $100k account.
 
If you are insurable you can 1035 that cash value to an IUL with a 1% or 1 1/2% current loan rate which is better than any bank rate that can change to 0% after 5 years and you can potentially even quit paying premiums as well.
 
I wouldn't.

What he's recommending is to get you a NEW policy, funded by the tax-free exchange of cash values from your old policy.

Your new policy would be based on your current age, health status, new constestibility period, and new premium structure (because you're older now).
 
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