Your Personal Bank With Special Guest:
Brandon Miller, Director, Life Equity Lending, M&M Bank
Use Your Personal Bank as Collateral for Bank Line of Credit to create Positive Arbitrage
THANK YOU FOR YOUR INTEREST!
To get a head start NOW, Helpful information can be found in the attachments of the email you will receive.
Use Your Personal Bank as Collateral for Bank Line of Credit to create Positive Arbitrage Special Guest: Brandon Miller, Director, Life Equity Lending, M&M Bank
Attachment 1: Briefly explains using the cash value of Your Personal Bank
TM policy as collateral for a bank line of credit.
The Brochure lists two policy options for growth. Steady Consistent Growth and Performance Factor Growth. We can discuss your situation to determine:
1. Which option is better for you or…
2. Combination of both or…
3. If you should consider adding an additional policy
Attachments 2: Life Equity Line of Credit Brochure
After extensive research and due diligence, we have found only a handful of banks in the US that offer a line of credit using life insurance policy cash value as collateral. M&M Bank specializes in this type of
loan. They are an FDIC insured bank located in the Chicago area. Your Personal Bank and agents receive no compensation from recommending any bank product. This information is provided solely for the benefit of our clients.
Attachment 3: M&M Bank Life Equity Line of Credit FAQ
Attachment 4: Your Personal Bank Radio Show interview with Brandon Miller, Director Life Equity Lending, M&M Bank. I recommend listening to this interview. Brandon answers most of your questions regarding using a Your Personal Bank life
policy with a Bank Line of Credit to create Positive Arbitrage. Other assets can be used to leverage the bank line of credit also.
M&M Life Insurance Equity Line of Credit key points:
- The interest rate is prime, with a minimum rate of 3.95%
- Current Rate = 3.95%
- Loan up to 95% of the cash value of your whole life policy (Consistent Steady Growth), up to 75% of the cash value of your IUL policy (Performance Factor Growth)
- No loan fees
- Charged interest only on borrowed funds
- Interest due quarterly
- Minimum amount: prefer $60,000 minimum line of credit, can combine policies or with other assets, will consider lesser amounts
- Credit check required: prefer 630+ credit score, no liens/judgements
- Will not affect Loan-to-Income ratio for other financing: not reported as debt by the bank because policy is collateral for the bank line of credit
Your Personal Bank
TM– Life Policy key points:
- Steady Consistent Growth = 5% annually (currently)
- Performance Factor Growth = 2.7 times index credit minus fee (15% average annually past 20 years, with limited downside)
- Funds grow tax deferred, access income tax-free, pass to heirs income tax-free
- Cash generally grows faster than bank line of credit interest rate
- Policy cash value would be collateral for the line of credit
Combining Your Personal Bank
TM Policy with Bank Line of Credit to access funds key points:
Consistent Steady Growth
- Life Policy interest credit: 5.00% currently – Life Policy interest credit: 15.00% (average past 20 years, will vary based on index returns)
- Line of Credit interest charge: 3.95% currently – Line of Credit interest charge: 3.95% currently
- Positive arbitrage:
1.05% – Positive arbitrage: 11.05% (will vary based on index returns)
Funds accessed using line of credit to pay debt, purchase items, or invest in other assets would still earn some interest! Therefore, you could reduce the cost of financing items and/or increase returns on assets by about 1% or more!
If 1% extra on asset returns and/or savings on financing items does not sound like much, add up the different over a decade or more. With compound interest working in your favor, the difference can be significant!