The average American household is carrying about $15,500 in credit card debt. And 33% of people own at least 2 cards. Chronic misuse of credit cards, such as making purchases way above a person’s ability to afford, has become the norm. (Nerdwallet.com)
Considering the average median income per year, per household is $51,000-that is a horrible debt-to-income ratio.
Leveraging Yourself the Right Way
With a whole life policy, you build up cash reserves or a cash value that you may borrow against, for any purpose: investments, college tuition, home improvement, vacations – you name it. And this money can be tax-deferred (or tax-free, depending upon its use), with no restriction or penalties, and available throughout your life.
The Terms are Set by You
While the interest on your policy loan may be either fixed or variable and is set by the insurance company, the re-payment terms are set by you. There may even be no repayment required! But since the loan is being repaid back into your own account, you create more liquidity for more future borrowing. Because of this guaranteed growth, the loan is usually repaid as quickly as possible.
To learn more about the benefits of a whole life insurance policy, including the benefits of being your own bank and financing company, take the learning course at Infinite 101.
Remember, unlike your credit cards, with a whole life policy it’s your money, and your credit is always good!