Jason and Kyle breakdown the difference between non-direct and direct recognition.

  • Is one choice better than the other?
  • Direct recognition policies credit dividends differently on the amount of dollars that are loaned out on policy loans.
  • Non-direct policies do not recognize policy loans and credit dividends to the total amount of cash value.
  • There are both fixed and variable loans rates for policy loans.
  • The reason why you must pay interest to the insurance company when using policy loans.

Blog Link: https://cashvaluesolutions.com/blog/direct-and-non-direct-loan-recognition

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