Whole life education
Whole life is permanent insurance with a cash-value component.
The legacy CKT site discussed specially designed whole life and cash-value strategies. The rebuilt page keeps the core education while separating contractual guarantees from dividends, loans, and strategy claims that depend on the specific policy.
Whole life basics
Whole life is permanent life insurance. Traditional designs generally use a scheduled premium and include cash value. Nonparticipating policies do not pay dividends; participating policies may pay dividends based on the insurer’s experience, but dividends are not guaranteed.
Policy loans
Many whole-life policies allow borrowing against available cash value. Loans accrue interest and, if not repaid, can reduce the cash value and death benefit. A large outstanding loan can also contribute to policy lapse in some circumstances.
“Infinite banking” and specially designed policies
Some strategies use specially designed participating whole-life policies and policy loans as part of a broader cash-flow system. Whether that structure makes sense depends on premium commitment, policy design, loan terms, dividend assumptions, tax considerations, and alternative uses of the money. The strategy should not be evaluated from projected returns alone.
Educational reference: NAIC life-insurance guidance and policy-specific contract terms.
Understand the options first. Decide what fits second.
Use the guided experience to organize your questions, or contact Chris when you want to talk through your situation.