blastAway
Related to whole life, front loading it and then ising the money later....
Assumptions:
Cash value policy that has the additional $$$ put into.
After approx 13-15 years the dividends can sustain the policy premium.
After approx 10 years the amount of CV starts outweighing the amount put in (after 5 more years it's by nearly 30K)
So, others have done this etc. and this isn't about the pros and cons. It's a fixed income savings account w/ a purchased benefit of life insurance. After 15 years or so the tax free rate isn't so bad and there's lots less risk.
Taking the money out by cancelling the policy defeats the preferential tax treatment, so we're not doing that.
Question Is:
How to borrow the money in such a way that we don't have to pay premiums OR interest payments again without having the policy collapse on itself??
As I look at the illustration, if we borrow anything close to what we put into the policy, the dividends and continued CV growith will NOT be enough to cover both the premiums + interest.
And as each year passes and the interest is paid from the CV, the interest payment the following year is higher.
So, essentially to all you masters of this process: What is the magical equation to keep those two in balance and still borrow out enough cash to have taken advantage of the tax free growth?????
Assumptions:
Cash value policy that has the additional $$$ put into.
After approx 13-15 years the dividends can sustain the policy premium.
After approx 10 years the amount of CV starts outweighing the amount put in (after 5 more years it's by nearly 30K)
So, others have done this etc. and this isn't about the pros and cons. It's a fixed income savings account w/ a purchased benefit of life insurance. After 15 years or so the tax free rate isn't so bad and there's lots less risk.
Taking the money out by cancelling the policy defeats the preferential tax treatment, so we're not doing that.
Question Is:
How to borrow the money in such a way that we don't have to pay premiums OR interest payments again without having the policy collapse on itself??
As I look at the illustration, if we borrow anything close to what we put into the policy, the dividends and continued CV growith will NOT be enough to cover both the premiums + interest.
And as each year passes and the interest is paid from the CV, the interest payment the following year is higher.
So, essentially to all you masters of this process: What is the magical equation to keep those two in balance and still borrow out enough cash to have taken advantage of the tax free growth?????