Is an IUL policy loan really fast and simple? Ms. Dan, a self-employed nail technician in Georgia, joined an IUL in 2017 for about $200 a month. When she needed to renovate her home, she borrowed $20,000 from her policy’s cash value and had the money in about 48 hours.
Why Ms. Dan bought an IUL
Ms. Dan has lived and worked in the U.S. for more than 30 years. As a self-employed nail technician, she has no employer benefits. In 2017 she joined IUL Secrets from National Life Group (NLG) through Thinksmart Insurance for four reasons:
- Savings for her two children.
- Retirement income.
- Living benefits in case of serious illness.
- The option to borrow for a home or a car.
From doubt to trust
At first Ms. Dan asked whether insurance really pays and whether it can be trusted, partly because of bad insurance stories from Vietnam. She researched NLG and asked her American friends. “If the company weren’t good, how could it last more than 175 years?” she says. She later bought policies for her children too.
How Ms. Dan took her IUL policy loan
Loan 1: a trial of about $5,000
Before her first loan, she saw her account had grown by more than $10,000. Her son contacted the office for a trial loan of about $5,000, even though she did not need the money, just to see if the process was real. It was approved quickly.
Loan 2: $20,000 to renovate her home
When she needed home repairs, she borrowed $20,000. The money arrived about 48 hours after she sent the form. “I didn’t expect the money to arrive after just two days,” she says.
- Contact the Thinksmart Insurance office to request a loan.
- Print the loan form at home, sign it, photograph it, and send it back.
- NLG receives the request.
- Receive the funds.
Video: Ms. Dan tells her story
Do you have to repay it right away?
As described in Ms. Dan’s story, the loan from her IUL:
- Has no required repayment schedule or fixed monthly payment.
- Can be repaid at any time, or not at all.
- Any unpaid balance is taken from the cash value or deducted from the death benefit.
That spared her the monthly pressure of a bank loan. Still, an unpaid loan reduces what your family receives, so borrow an amount that fits your plan.
Lessons for self-employed nail technicians
- No employer benefits means planning early on your own.
- A small trial loan is how Ms. Dan tested the process before she needed real money.
- Read your policy terms, because actual benefits depend on the contract and the carrier’s rules.
To plan ahead for your children, see Kid IUL Secrets. To build savings with higher contributions, see Max Funded IUL Secrets.
Frequently asked questions
How long does an IUL policy loan take?
For Ms. Dan, the $20,000 arrived about 48 hours after she sent the signed loan form.
Where does the loan money come from?
From the policy’s own cash value. Ms. Dan saw her account had grown by more than $10,000 before her first trial loan.
Do you have to make monthly payments?
In her story there is no required schedule or fixed monthly payment. You can repay anytime or not at all; any unpaid balance is taken from the cash value or the death benefit.
What documents are needed?
Just the loan form. Ms. Dan printed it at home, signed it, took a photo, and sent it back.
Can you take a small trial loan first?
Yes. Ms. Dan’s son contacted the office for a trial loan of about $5,000 even though she did not need the money, and it was approved quickly.
Want to know how much you can borrow from your policy?
Thinksmart Insurance checks your cash value and walks you through a loan at no cost. Talk to us for free →
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