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so many tik tok videos out there with misinformation on this topic and whole life & IUL. Half of them are from people that only heard part of the product details & are pushing the kool aid they believed they drank. Seen a few where they give the impression you can borrow from your Million dollar policy without explaining you would have to either put $1.1M in or wait many years before there is much of anything in it to be able to pledge it as collateral for a loan from the insurer. Almost everyone in the comments is wanting to buy & asking for contact info because they think you can borrow from the death benefit.......LOL
Timely comment. Received a text over the weekend from a client with a tiktok screenshot of an IUL "banking" ad that read:
"that moment your realize you can put $500 a month into a 6 figure life insurance policy that you can borrow against tax free to buy an asset that can pay the loan off while the money in your policy is still gaining interest. Be your own bank."
(yes, the "your" is what they wrote)
They asked me if it was really a thing.
I didnt even know where to start with that one. I didnt even think they might have thought the DB was loanable.
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