Policy Loan Interest Archives - Universal Wealth Managers LLC

Blog 80 – The Design Of Infinite Banking Policies

The design of high cash value, dividend paying whole life insurance policies, or Infinite Banking (IBC) policies, has two phases. The first phase consists of policy blending, heavy use of paid-up additions, and the typical 10/90 or 20/80 split between the premium going to the base whole life policy and the premium going to the paid-up additions rider. This first phase is quite consistent from case to case and the only variability might be in the premium split due to the total amount of premium (annually or monthly) to be paid, and design restrictions from the insurance company we are using.

Blog 79 – When To Pay Cash And When To Use A Policy Loan

One of the questions we more often have from our clients is: Should I pay for this expenditure with the cash I already have in my conventional bank account, or should I first deposit that cash as an unscheduled PUA contribution to my IBC policy and then use the cash from a policy loan to purchase the needed item? What they are really asking is if there are any special conditions or guidelines they should consider before deciding whether to use cash or a policy loan for their expenditure.