Direct vs. Non-Direct Recognition in Life Insurance: What You Need to Know

Are you considering whole life insurance and want to know which is better: Direct vs. non-direct recognition life insurance companies? What does it mean? Why does it matter? How does it impact you? And should it be a part of your decision-making process? https://www.youtube.com/watch?v=y1UZ_EYIns0 In this episode, we discuss the why, how, and what of direct recognition vs. non-direct recognition, so you have the knowledge you need to decide. So if you want to know how a life insurance company’s treatment of dividends when you have a policy loan affects your policy’s cash value growth over time and your future ability to borrow against your policy for Infinite Banking, find out whether it matters, and most importantly, tune out the biased opinions of some who say you should ALWAYS have it one way, and NEVER the other, and really understand it, so you can get the best whole life policy, tune in below! Table of contents* Where Whole Life Insurance Policies Fit Into the Bigger Picture* What Does Direct or Non-Direct Recognition Mean?* Direct vs. Non-Direct Recognition Companies* How Policy Loans Affect Dividends* Fixed vs. Variable Loan Rates* Should You Choose Direct or Non-Direct Recognition?* Choosing the Best Life Insurance Company* Ready to Start Your Life Insurance? Where Whole Life Insurance Policies Fit Into the Bigger Picture Privatized Banking with whole life insurance is just one part of the bigger journey. That’s why we’ve developed the 3-step Cash Flow System. It’s your roadmap to go from just surviving, to a life of significance, purpose, and financial freedom.  The first stage is the foundation.  You first keep more of the money you make by fixing money leaks, becoming more efficient and profitable.  Then, you protect your money with insurance and legal protection and Privatized Banking.  Finally, you put your money to work, increasing your income with cash-flowing assets. What Does Direct or Non-Direct Recognition Mean? When you’re shopping for a life insurance policy, you’re going to hear the terms direct and non-direct recognition thrown around often. The terms have roots in the relationship between dividends and policy loans. Whole life insurance dividends are the non-guaranteed part of the life insurance contract, though historically companies have an excellent track record of paying dividends. Each year, companies will declare their dividend rates.  However, companies handle dividends differently depending on whether you have an outstanding policy loan. Direct recognition companies directly acknowledge outstanding policy loans and will pay divide...