The cash value of a whole life policy is savings that grow tax-free inside the policy. How policyowners access those savings can have dramatic implications for the long term growth of that net cash value, and death benefit.
The most basic form of accessing cash value is to simply pull money out of the policy, which is called surrendering. Surrendering can have significant tax implications and lowers the death benefit. Once a policyowner surrenders cash out of a policy it cannot be put back into the policy.
Borrowing from a bank preserves the growth of the policy and tax advantages of the underlying cash value1. However, rates charged on these loans may be higher than an iLOC, and the experience from origination to making draws can be cumbersome, requiring a lot of paperwork and time.
iLOCs offer all of the policy growth and tax advantages of borrowing directly from a bank2, with competitive rates, lower minimum line sizes, faster draw times and a simpler application process.
Northwestern Mutual and MassMutual Financial Advisors can sign up for our Advisor Portal and begin sending clients (or themselves) invitations to apply on the same day.
Policies from direct recognition carriers may earn lower returns when a policy loan is taken against the cash value.
Consult with your tax advisor.
The Inclined Line of Credit is currently available in all U.S. States with the exception of IA and MD.
Lines of credit processed through the Inclined platform are funded via Inclined’s state-chartered and national banks. THIS IS A LOAN SOLICITATION ONLY. INCLINED TECHNOLOGIES, INC. IS NOT THE LENDER. INFORMATION RECEIVED WILL BE SHARED WITH ONE OR MORE THIRD PARTIES IN CONNECTION WITH YOUR LOAN INQUIRY. THE LENDER MAY NOT BE SUBJECT TO ALL VERMONT LENDING LAWS. THE LENDER MAY BE SUBJECT TO FEDERAL LENDING LAWS.