24 Aug Are there any risks associated with cash flow banking?
Posted at 08:43h in
Yes, there are potential risks and drawbacks to consider:
- High upfront costs: Whole life insurance policies tend to have higher premiums than term life insurance, making starting a cash flow banking system expensive.
- Limited returns: The cash value growth in a whole life policy may not match the potential returns of other investments, such as stocks or real estate.
- Policy performance: The actual performance of the policy may depend on various factors, including the insurance company’s financial strength and policyholder behavior.
- Surrender charges: If the policy is surrendered early, there may be surrender charges that reduce the available cash value.