Beyond the Nest Egg: How to Be Financially Independent Outside of a Broken System

by Joe Withrow

this way, cash value life insurance policies are an asset for us. They produce a rate of return, tax-free—even though that’s not the reason why we buy these policies. We buy them to support our families if something were to happen to us. Meanwhile, term life insurance policies will always be an expense on our balance sheet. This is where strategy comes into play. We can borrow against our life insurance cash value at any time, for any reason. And again, that’s not a taxable event. We don’t owe taxes on money we borrow. And guess what? There’s no repayment schedule for cash value loans. We will have to pay a little bit of interest every year, but that’s it. We can pay the loan back as fast or as slow as we want… or never at all. I absolutely take advantage of this. I borrow against our life insurance cash value to help finance my real estate down payments. This helps me buy new properties sooner than I would otherwise be able to.