Your investor brief

Your next down payment could come from a pool of money you control.

Many investors use a dividend-paying whole life policy as a source of capital they can borrow from on their own schedule. Here is how it works, what it costs, and when to skip it.

Get Chapter 1 free

Cover of The Investor's Capital Playbook

Free Chapter 1

The Investor's Capital Playbook. Plain words, about a 15-minute read, ends with a 5-question "is this for me?" test.

Get Chapter 1 free Or call Bader: (305) 804-0374

No sales call unless you ask for one.

How investors use it, in 3 steps

Build cash value

A whole life policy designed for cash value. A big lump sum goes in early as "paid-up additions," kept under the IRS limit, so cash value builds faster in the early years.

Borrow against it

When a deal shows up, you take a policy loan against the cash value. No loan application or credit check. The insurer sets the loan rate.

Pay it back your way

You choose the repayment schedule. Interest still accrues, and anything unpaid is taken out of the death benefit.

A simple example (made-up numbers)

Cash value in the policy	$80,000
Policy loan for a down payment	$50,000
Loan interest at a sample 6% a year	about $3,000 a year
If you never repay it	loan + interest come out of the death benefit

Illustration only. 6% is a made-up rate, not any insurer's rate. Real numbers depend on your age, health, the policy design and the insurer.

The honest part

Policy loans are not free. Interest accrues.
Dividends are not guaranteed.
Cash value takes time and premium to build. Early years are the slowest.
Ending a policy early can cost you money.
It is life insurance, so you need to qualify (age and health).
If you need every dollar in deals today, this may not fit. Chapter 1 helps you check.

Read Chapter 1 free