As she approached retirement, Linda was feeling the pinch of high housing and insurance costs. She used an Inclined line of credit (iLOC) to access her whole life cash value and pay off her mortgage — significantly reducing her housing costs. Now mortgage-free, Linda enjoys greater peace of mind and the freedom to plan for full retirement.
Linda’s Story: Rising Costs and Retirement Planning
Linda’s story begins in the redwood hills of coastal California, the location of her 50-acre property she’s called home since 1992. Her ranch, complete with horses and gardens, is a place she’s lovingly tended with a deep appreciation for nature.
A single mother since 1990, Linda raised her two daughters while working full-time as an emergency room nurse. “I’ve always worked hard and found ways to make things happen,” she says. “I’ve been in the same place for over 30 years, and it’s truly home.”
Over time, the cost of maintaining her home began to climb, especially after a series of California wildfires caused her homeowners insurance rates to skyrocket. What had once been a $2,500 annual expense ballooned to more than $9,000 per year.
“I kept trying to make it work… cutting coverage, raising the deductible, anything to keep the cost manageable,” Linda recalls. “But I wanted to get ahead of it, to make smart financial choices as I approached retirement.”
Linda continued to work three days a week to make ends meet, even after turning 71. She wanted to move toward partial retirement, but needed a solution to reduce her cost of living so she could have more independence and peace of mind.
Unlocking Her Policy’s Value with an iLOC
Fortunately, around the same time she purchased her ranch, Linda made another decision that would prove life-changing: she purchased a whole life insurance policy. “It was the best thing I ever did,” she says. “I knew I’d be able to borrow against it if I ever needed to, and it’s truly been a blessing,” she shares.
Over the years, Linda consistently paid into her policy, which grew a substantial cash value. When she needed funds to make home upgrades, like modernizing her electrical system, she was able to borrow $30,000 through a policy loan with her carrier.
Later, her advisor Josh introduced her to Inclined. By refinancing her policy loan into an Inclined Line of Credit (iLOC), she unlocked more of her cash value while maintaining her full dividend-earning potential. This powerful combination opened new possibilities, and gave Linda confidence to use the funds to pay off her mortgage and set herself free from her massively expensive homeowners insurance policy.
“I love that my whole life policy continues to earn dividends even when I use Inclined. It’s the best thing. It gives me comfort knowing I have that flexibility as I move closer to full retirement." - Linda, iLOC Client
Financial Freedom and Peace of Mind
“When I got the money and was able to pay off my mortgage, I was elated,” she says. “It was my birthday around that time, so I celebrated with a bottle of champagne. It’s such a feeling of freedom to know that I own my property!”
Linda was able to immediately change her homeowners insurance after the payoff. Now, instead of sending thousands away each month, she can keep her paycheck for other priorities, like maintaining her home and enjoying her land.
“I love that my whole life policy continues to earn dividends even when I use Inclined,” she says. “It’s the best thing. It gives me comfort knowing I have that flexibility as I move closer to full retirement,” she says. “It’s going to allow me to actually retire someday. And working with Inclined has been a fabulous blessing.”
Linda’s iLOC credit limit has grown automatically along with her policy’s accumulated cash value1, and she’s also speaking with her CPA about deducting the interest now that she’s using Inclined instead of a policy loan.
“I want people to know they can take control of their own destiny,” she says. “Whole life insurance is a powerful tool, and I wish more people knew about it. Using the iLOC has given me flexibility, freedom, and peace of mind.” At Inclined, we call these the living benefits of whole life insurance.
1. When an iLOC account is active and in good standing, Inclined evaluates the credit limit twice per policy, per year and generally increases it with the value of the policy. However, credit limit increases are discretionary and are not guaranteed.
