Life Insurance Policy Loans to pay Premiums – Should You DO This?

Life Insurance Policy Loans to pay Premiums – Should You DO This?

On this week’s episode, we have a special interview with Alex, who shares his story about using policy loans to pay premiums on his life insurance. It all started back in the 90s when his agent suggested that policy loans could cover his premiums. Now, over 20 years later, the consequences of this approach are clear.

While policy loans offer valuable flexibility—allowing you to seize financial opportunities without losing out on guaranteed growth and dividends—using them to pay premiums over the long term can backfire. Policy loans are a powerful tool, but like any good strategy, they have to be used wisely. A helpful rule of thumb: whenever you take a policy loan, make sure you’re earning or saving more than the interest.

Yes, a policy loan can cover a premium in a cash flow crunch, but don’t let it become a habit. Always keep an eye on the interest, and make it a practice to review your strategy at least once a year.

Join us to hear Alex’s story and get advice for using policy loans responsibly. Contact McFie Family Insurance today to schedule your own policy review and make sure your strategy is on the right track.

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* As of 2023 McFie Family Insurance does charge for policy reviews