Loans are an easy source of Liquidity

Every household needs a stable portfolio of liquid savings (such as bank deposits or money market funds) in addition to life insurance protection. What happens though if unforeseen circumstances deplete that financial liquidity? A whole life policy offers a simple solution.

With a whole life policy in place, you may obtain a tax-free loan against your cash value without an application or lengthy approvals. The loan is made at a competitive interest rate, and your cash value continues to accumulate at the guaranteed rate. Consequently, the "net-cost" of a whole life policy loan is quite low, especially compared to most commercial loans or revolving credit lines. Since you can pay back policy loans at any time, or not at all*, they are especially useful for meeting short-term liquidity needs such as a tuition payment, or long-term planning needs like supplementing your retirement income.

* Total death benefits are reduced at payout by the amount of outstanding policy debt.