Typically, you can access 92-93% of your cash surrender value without lapsing the policy, ensuring it remains in force and avoids triggering a taxable event.
For tax-free income, many clients with $1M in cash value earning an average of 8-10% net returns can pull out $100K annually using index loans, without depleting principal.
This works because the return on the cash value often exceeds the loan interest.
Some policies even include loan protection riders for added security.
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