📈 Long-Term Wealth Comparison
💡 The Infinite Banking Insight
Policy Loan Mechanics: When you borrow against your life insurance, your cash value continues to earn the crediting rate on the FULL balance. You pay interest on the loan, but your money never leaves the policy. The net cost = loan interest − continued crediting on borrowed amount.
Bank Loan Reality: You pay interest AND lose the opportunity to earn on the payment amounts. Plus, bank loan interest is rarely tax-deductible for personal use.
Key Concept: It's not just about interest rates — it's about whether your money keeps working for you while you use it.