How Does A Student Fund Their Whole Life Insurance Policy Using A HELOC

How Does A Student Fund Their Whole Life Insurance Policy Using A HELOC

One of the benefits of a HELOC is that students can pull out equity from the HELOC and put it into the whole life policy. Students like to have liquidity (cash) sit in their whole life policy. One will wire the money to the insurance provider, and within days that the money is 100% liquid again (to pay off the HELOC) while earning guaranteed dividends!

Again, one will borrow against the policy's cash value, so money is not being taken out, thus never interrupting the growth curve and earning of dividends. Anyone can take this money and place it elsewhere to earn another return too. This is why we call it "private banking" because the individual now becomes the banker. To clarify, this strategy not an investment – it’s done for a rate of return. It's how one can avoid growth interruptions and get guaranteed dividends every year with virtually no risk.