In this post I am going to go into more depth on what you must consider when repaying a policy loan.
First, I want to say that you should not take a policy loan unless you intend to repay it. You started your policy because you wanted to start controlling the banking equation and stop sending your hard-earned money off to wealthy bankers.
If you do not repay the loans that you take you are sabotaging your plan. Unpaid loans will eventually leave you in the same position you would have been in if you had continued relying on banks and lending institutions for money– broke.
My guess is you wouldn’t stop paying your mortgage just because it is not convenient for you. Treat your banking vehicle with the same respect that you would treat a 3rd party lender such as Bank of America.
Every dollar you repay your loan is credited right back to YOUR available cash values. Repaying your loan immediately rewards you and puts you on the path to true financial independence. Sure, there is no one pointing a gun at you to repay the loan, you control the repayment, but consider the stakes here. Financial slavery or financial independence.
So how much should you repay? The same amount you would repay a financial institution for a similar loan.
This means if you are borrowing money to buy a car you will want to repay the loan in a 3-6 year period at a comparable interest rate.
When you decide you want to take a loan contact me and I will get you the loan paperwork and at the same time I will help you calculate the loan repayment terms so that you can immediately start repaying the loan.
One last note… Even in the tightest of months always repay at least the amount that the insurance company is charging you for interest. This will keep your loan from growing and avoid potential challenges in the future that may arise from unpaid interest.