Loans – IBC Global https://old.ibcglobalinc.com Infinite Banking Specialists Mon, 18 Jul 2022 18:59:52 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 https://old.ibcglobalinc.com/wp-content/uploads/2020/06/websitefavicon.png Loans – IBC Global https://old.ibcglobalinc.com 32 32 Direct vs Non-Direct Recognition https://old.ibcglobalinc.com/direct-vs-non-direct-recognition/ https://old.ibcglobalinc.com/direct-vs-non-direct-recognition/#respond Thu, 14 Jul 2022 16:00:43 +0000 https://old.ibcglobalinc.com/?p=502960

Non-Direct Recognition companies operate this way:

  • A Non-Direct Recognition company does not recognize that a loan has been taken and will credit the current dividend rate to any money that is in a policy’s cash value AND outstanding in loans (amazing, but true). Here is an example:
  1. Cash Value: $100,000
  2. Dividend: 6.00%
  3. Loan Rate: 5%
  4. Cash Value: $50,000
  5. Dividend Credit to unborrowed funds: 6.00%
  6. Loan Balance: $50,000
  7. Dividend Credited to borrowed funds: 6.00%

Direct Recognition companies operate this way:

Direct Recognition companies operate this way:

    • A Direct Recognition company will recognize that you have pulled a loan and adjust the dividend credited to borrowed funds. This is often labeled as “bad” by many agents that prefer Non-Direct Recognition companies. It is important to study the individual insurance company’s loan treatment. It is not uncommon for an insurance company to lower, or raise, the dividend rate on borrowed funds. This functions very similarly to a Non-Direct Recognition company/policy. Here is an example:
  1. Cash Value: $100,000
  2. Dividend: 5.65%
  3. Loan Rate: 6%
  4. Cash Value: $50,000
  5. Dividend Credit to unborrowed funds: 5.65%
  6. Loan Balance: $50,000
  7. Dividend Credited to borrowed funds: 5.65%
]]> https://old.ibcglobalinc.com/direct-vs-non-direct-recognition/feed/ 0 What are Policy Loans? https://old.ibcglobalinc.com/what-are-policy-loans/ Wed, 13 Jul 2022 18:35:51 +0000 https://old.ibcglobalinc.com/?p=502970 When can I take out a loan? https://old.ibcglobalinc.com/when-can-i-take-out-a-loan/ Wed, 13 Jul 2022 18:35:51 +0000 https://old.ibcglobalinc.com/?p=502974
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]]> https://old.ibcglobalinc.com/do-i-have-to-pay-loans-back/feed/ 0 Loan Interest Rates https://old.ibcglobalinc.com/loan-interest-rates/ Wed, 13 Jul 2022 18:35:51 +0000 https://old.ibcglobalinc.com/?p=502966
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