Simply Explaining Insurance #89- Paying yourself back
This strategy isn’t for everybody. It takes some understanding and some discipline. If you can pull it off and start using this concept, it can be quite eye-opening. Listen to the basics of the strategy here.
This episode explains what it is like when you borrow money from your permanent life insurance policy. In order to properly do this, you have to first fund it, which takes time and patience. What do I mean by patience? It can take 10 years.
Once you have money in the policy to borrow, the magic happens when you start paying the debt back. When you pay a “normal” debt back, you are paying back a financial institution until the debt is paid off.
What about when you pay yourself back? The payment you make then, not only lowers the debt, but it ups your cash value as well. It is lowering your debt and upping your cash at the same time. That is where the power of this strategy is.
Links
Music by Roger Clyne and the Peacemakers
Simply Explaining Insurance on ITunes
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