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Learn which CVLOC company is ideal for your situation.

Get our PDF and flowchart via email, as well as a link to our interactive CVLOC quiz


The most common myth among those researching “privatized banking with whole life insurance” is that there is some magic to using the policy loan. Oftentimes people think:

  • They’re paying themselves back interest directly into their policy
  • Accessing funds via the policy loan greatly enhances the policy’s total return
  • Utilizing outside lenders offering lower rates won’t be as favorable as the above

All of the above are false. Unfortunately, several practitioners continue to echo these false sentiments because it’s the sizzle that sells the steak. I have to admit it’s very marketable, but also very misleading.

The fact of the matter is, the magic behind “privatized banking with whole life insurance” strictly comes down to one key ingredient – CONTINUAL COMPOUNDING. You keep your entire asset base working even while the funds may be out on loan, hopefully building more assets such as:

  • Strategic Real Ventures
  • Timely Business Investments
  • Viable Private-Money Lending Opportunities

As long as you have something called “POSITIVE ARBITRAGE” working in your favor, then you can also still responsibly borrow against your Whole Life policy for non-asset-building expenses and still come out ahead.

This does NOT mean you can spend your way to financial well-being!

But this does mean your policy can continue building at a rate greater than what you borrow at.

Thankfully you can lower your borrowing rate substantially because traditional banks now realize that Whole Life policies are guaranteed to grow annually and are backed by “A-paper-companies.” Since this is a very safe niche for them, several banks now offer extremely attractive rates (significantly better than policy loan rates) with these turnkey Cash Value Line of Credit (CVLOC) programs.


  • Lower loan rates than policy loans (currently 3%-3.5%)
  • No effect on policy dividends for loaned money
  • Aggregate multiple family policies into one line of credit
  • Access to account funds online & with convenience checkbook


  • Interest only due monthly
  • Line of Credit will often show on credit report

For years, banking practitioners have advised you to “get off the grid” so to speak. However, your Whole Life banking strategy can now be greatly enhanced using these 3rd party lenders so long as you have good credit and plan to pay interest-only, or as Nelson Nash would say, “being an honest banker.”

Otherwise, if you have bad credit or you can’t pay interest-only, or you need privacy for the loan, then paying a higher rate to the insurance company to borrow against your Whole Life policy would be better.

Fill out the form below to access our flow chart to learn your ideal lender:

Learn which CVLOC company is ideal for your situation.

Get our PDF and flowchart via email, as well as a link to our interactive CVLOC quiz