Non Direct Recognition Life Insurance is Money Management
Buying Non Direct Life Insurance is a means to establish a solid financial asset base that you can borrow against. It is a whole life policy that the company still pays dividends and interest based on your cash value even though you have borrowed against it. The interest rate you pay on the loan normally is offset by the dividends and interest credited to your account as if there were no loans on your policy.
With a Non Direct Recognition Life Insurance Policy you will be able to complete your own financing of major purchases and still grow a nest egg. The dividends accumulate tax deferred until they are used at a future date.
The bottom line is instead of carrying substantial consumer debt; you have the means to be your own bank with this type insurance.
You should buy Non Direct Recognition Insurance because failure to do so can result in loss of dividends until the loan is repaid. Just remember that loans on a Direct recognition Life Insurance is a policy that will eat up your cash value and keep in mind that dividends are based on your cash minus loans.
You need to use an agent that is familiar with this type of policy because setting it up properly is essential to maximize the financial benefits.
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