Answers to Your Money Questions, Part 1

We all have money questions. If you don’t, you just haven’t asked them yet.  Today, we’re answering questions from you—our audience, tribe, fans, those in a quest to control their money and financial future! https://www.youtube.com/watch?v=ZiW3MeJiL7c There are some great ones here that might be on your mind too. So maybe you’ll get the answer you’ve been needing. Then you can clear that hurdle and get one step closer to your goals. OR maybe it will prompt you to ask a question of your own. Find out and tune in now! Table of contents* Does it Make Sense to Fund a Policy with a Loan?* Should You Pay Off Your Mortgage ASAP?* Can You Borrow Against Your Death Benefit?* Why Can’t You Simply Increase the Face Value of an Existing Policy?* Is it Complicated to Prove Disability?* What Insurance Companies Do You Suggest?* What are the Interest Rates on a Policy Loan?* Can I Do a 1035 Exchange Between Companies?* What Are the Best Companies to Work with for Policy Loans?* How Do Premiums Contribute to Cash Value?* Isn’t a Dividend Just a Refund of Premium? * Book A Strategy Call Does it Make Sense to Fund a Policy with a Loan? A YouTube viewer of our show asked us the question, “Does it make sense to take out equity from an investment rental to start a policy and then borrow from that policy to reinvest in other investments?” We believe that it makes sense to have a life insurance policy as a foundation for your finances. This is because it protects your income, provides liquidity, and shields your money from creditors. On the other hand, properly funding a whole life insurance policy requires consistent payments. Depending on your funding source, it may not be wise to fund a policy with a loan if you don’t have a strategy for paying premiums after that. This depends on your personal economy and your investing goals.  The other reason for caution is that it can take a few years for your cash value to “break even.” While you are able to take a life insurance loan right away, your cash value will not immediately equal your premiums paid. It will take time to build your policy to a point where you can make larger investments. However, when you do reach that point, it’s an excellent strategy to leverage policy loans for cash-flowing investments. Should You Pay Off Your Mortgage ASAP? This question comes from Lon, another viewer on YouTube. He shared with us a HELOC strategy, and ended with this hypothetical: “The other question that you really need to ask is: Is it really better to pay off my mortgage ASAP vs. using my available income for investing?”