Frequently Asked Questions.
We understand that you may have questions about our services and how we can help your business grow. To make things easier, we’ve put together some of the most common questions our clients ask. If you don’t find what you’re looking for, feel free to contact us — we’re always happy to help.
Cash Value Life Insurance is a type of permanent life insurance that provides two benefits at the same time:
A death benefit for your beneficiaries.
A cash value savings component that grows over time. Part of your premium pays for the insurance. The remaining portion goes into a cash value account that grows tax-deferred.
Term Life Insurance is pure insurance only while Cash Value Life Insurance
Insurance has a cash accumulation account. Life Insurance Expires after a set number of years while Cash Value Life Insurance Lasts for life. Life Insurance has No savings or cash benefit while Cash Value Life Insurance value grows and can be accessed while alive
People who want lifetime protection, a private place for savings, tax-advantaged growth, and access to funds without bank approval. It’s ideal for working professionals, business owners, high-income earners, and anyone who values building wealth quietly.
Yes. Most policies offer guaranteed growth or a protected floor that prevents losing money during market downturns. Your cash value keeps growing even when the market drops.
Growth depends on the type of policy, but can come from: A guaranteed interest rate, Dividends (not guaranteed but historically consistent), Interest linked to market performance (Indexed Universal Life)
Yes. You can access your cash value tax-free through policy loans or withdrawals. No bank approval. No credit check. No repayment schedule (although repayment helps keep the policy strong).
When you borrow from your policy, you’re borrowing against your cash value—not withdrawing it. Your cash continues to grow even while you use it, and there’s no application or credit check. With a bank, you pay interest to the bank; with a policy, you’re essentially paying interest back to yourself.
Yes. Many people:
Build cash value, borrow from the policy, pay off high-interest debt (credit cards, student loans, car notes), pay themselves back.
This strategy is known as “becoming your own bank.”
Yes. You can borrow from your policy to fund down payments for homes or investment properties.
Absolutely. Parents use cash value as a tax-free education fund. It’s not counted against FAFSA financial aid calculations the way savings accounts and 529 plans are.
Cash value grows tax-deferred and can be accessed tax-free. The death benefit is also tax-free to your beneficiaries.
Legally, it’s life insurance. Functionally, it acts like:
A savings vehicle,
A tax shelter,
A private banking tool.
You get growth without market risk.
No, policies with a guaranteed floor cannot lose value due to market fluctuations.
There are insurance costs embedded in the policy. However, those costs fund:
Lifetime insurance protection,
Tax advantages,
Access to cash.
It’s not a fee. It’s an exchange of value.
The main types are whole life insurance (steady growth + dividends), indexed universal life (IUL) (market-linked growth + downside protection), and variable universal life (VUL) (market participation with risk).
Banks pay you low interest. They use your money to lend to others at higher interest and keep the difference.
With cash value life insurance, you play the bank’s role.
Infinite Banking is using your policy like your personal line of credit:
Borrow against your cash value,
Use it to finance major expenses,
Repay yourself instead of paying a bank
Yes. Your money never leaves the policy. It continues compounding as if untouched.
Yes. Once your cash value becomes large enough, it can pay the policy premiums.
Yes, many people use it for tax-free retirement withdrawals, without penalties or required minimum distributions.
Businesses use it to:
Build liquid cash reserves,
fund buy-sell agreements,
reward and retain key employees (Key Person insurance),
store capital outside the business bank account
Depending on the structure. Premiums used for executive bonus plans can be tax-deductible to the business.
It protects the business if a critical employee or founder passes away. The business is the beneficiary.
The business pays for a cash value policy on a key employee as a tax-deductible bonus.
The employee gets the policy as a benefit and builds wealth.
Banks purchase BOLI (Bank-Owned Life Insurance) to grow money safely, reduce taxes, and build reserves. If banks trust it, that says something.
Because it creates tax-free generational wealth, a guaranteed inheritance, and a private banking system for your family.
Yes. Many people borrow from their policy to buy cars and then pay themselves back.
The loan balance is deducted from the death benefit. Your family still receives the remainder tax-free.
Yes. An illustration will show how much cash value you can build, your projected tax-free income, and your borrowing power over time.
Book a free illustration. We will review your financial goals, calculate your numbers, and show how cash value fits into your strategy.
