Leverage means using the resources of others - be it time, money, systems or technology - to achieve more with less effort. Being able to leverage adds speed and velocity to our wealth building journey.
A cash value life insurance policy gives you leverage!
You can leverage the cash value within a life insurance policy to access funds easily and cheaply. Policyholders can tap into the cash value through policy loans. Having this tool in your financial tool box adds versatility, flexibility and responsiveness to your financial strategy. The cash value represents a growing pool of funds, accumulating tax-deferred/exempt over the life of the policy. When the need arises for additional liquidity, policyholders can leverage this accumulated cash without triggering immediate tax consequences, offering a tax-efficient solution for accessing funds. What can you use these funds for?
emergencies,
educational expenses,
investment opportunities,
supplemental retirement income,
just about anything!
Policy loans will not diminish death benefit unless it's not repaid. Talk about having your cake and eating it too!
Policy loans are typically at favourable interest rates compared to banks, so you will be saving on interest costs and increasing the ROI on potential investments.
The process of accessing a policy loan from your insurer is super easy as it avoids the tedious formalities of income verification and credit checks. It's just a matter of authorization and letting the insurer know where you want the funds deposited. This is particularly advantageous in urgent situations.
So, while your life insurance policy provides a safety net for your family and business, it also can facilitate the pursuit of other opportunities and meet financial obligations during your lifetime. In essence, leveraging the cash value within a life insurance policy provides a powerful and flexible financial resource, aligning with your diverse and changing needs across different stages of life.
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