Interest rates are high and so are the gas prices (currently $4.99 a gallon where I live). My husband works about 40 minutes from our home in Arizona and while he loved his fast, orange Dodge Charger… that thing only gets like 13 miles to the gallon and we needed to make a change. We decided to sell and look for another, gas friendly, car. We were paying $620.00 a month for the Charger and we were able to sell it for what was owed on it.
We checked into our local credit union, the same place we had gotten other auto loans from and were taken aback by the interest rates:
So, we decided to use what we have been paying into for the last five years and utilize the policy loan feature with my One America policy (this is on all whole life policies). [for transparency, I also have policies with Penn Mutual but have had my One America one the longest]
The first thing I did was look into how much I had available and what the interest rate was – the interest rate on my policy is 4.76%, yours may be different.
We searched for another car and were able to find a 2013 Ford Fusion Hybrid that got over 40mpg HALLELUJAH in great condition.
We plugged in the numbers and it was a no brainer to use the loan from One America versus a traditional loan at those high interest rates and then continue pay the $620.00 per month we were already accustomed to.
The process of getting the loan was easy; I filled out the form through One America’s portal, entered in my bank account information, signed electronically, and received the money in six days into my account.
[REMEMBER, I CAN HELP YOU WITH ALL OF THIS!]
If you haven’t watched before, please check out Michael’s short video of when to take a loan and when not to here.
We purchased the vehicle and feel so much peace of mind
1. Saving in interest
2. Saving in gas
3. Flexibility of skipping a payment if needed
4. Not having a mark on our credit report for getting our credit checked
5. Not having a new loan out in our name with a bank
My husband’s job will be moving us soon and we will be in the market for a new house, so not having the loan on our credit is a huge plus
6. Still getting the guaranteed interest on the full cash value in my policy
Payment back has been easy as well, I just set up an auto draft to pay it back monthly.
Check out Michael’s video on paying loans back here.
Overall, these policies that Michael puts together for you and I are there for our benefit. We can use them NOW for our personal or business purposes, they are not just there for our families when we pass.
Some things to think about:
• If you have a term policy and have increased your income, consider converting some or all of that to whole life and start saving now.
• If you have a whole life policy already, are you making the maximum contributions? As you know, most of our policies have flexibility and you may have previously lowered your Paid Up Additions to the minimum and haven’t increased them back up and are missing out on that guaranteed interest for your cash value to grow!
All the best,