Q&A: Infinite banking, life insurance, cash value, policy loans

Wealth Talks

Today we answer 9 questions we received about life insurance, cash value, money, interest rates, and dividends. These questions and their answers will be helpful to anyone who uses, or plans to use life insurance cash values and the Infinite Banking concept.

The questions are:

1. Do I get to choose the interest rate I pay on a policy loan?

2. If the dividend rate is 5% and my policy loan interest rate is 4% am I making 1% on the difference?

3. When I pay back my policy loan with interest am I paying myself back principle and interest?

4. Does the interest I owe on a policy loan change every month if I am making principle and interest payments monthly back to the policy?

5. What is the interest rate that the guaranteed cash values compound at?

6. How is the dividend rate determined?

7. Is the dividend rate the same as the compounding growth rate of the policy cash values?

8. Can the insurance company alter my life insurance contract if I start flight lessons?

9. When I borrow money from my policy how does it affect the guaranteed growth of my policy? How does it affect the dividends? How does it affect the face value?

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