Opportunity Cost Calculator
Compare three ways to finance a purchase: paying cash, taking a bank loan, or using your policy as collateral. See the true cost of each option.
Your Purchase Details
Equipment, vehicle, inventory, real estate down payment
Rate Assumptions
Typical range: 4-6% for mutual company policies
Return you'd get if cash stayed invested
The True Cost Comparison
After 5 years, here's what each option really costs
Option 1: Pay Cash
Use your savings directly
Option 2: Bank Loan
Traditional financing @ 7.9%
Option 3: Policy Loan (IBC)
Borrow against your policy @ 5%
vs. the most expensive alternative
The Truth About “Paying Cash”
Most people think paying cash is “free.” But when you spend cash, you lose everything that money could have earned. You're financing the purchase—you just don't see the cost.
“Cash is King”
Spending cash feels free because there's no monthly payment.
Lost Opportunity
Every dollar spent is a dollar not earning returns elsewhere.
Keep & Borrow
Use your capital as collateral while it continues growing.
How Policy Loans Change the Equation
Your Cash Value Keeps Growing
Unlike bank accounts where withdrawals stop earning interest, your whole life cash value continues growing even when you have a loan against it. The insurance company loans you their money using your cash value as collateral.
You Control the Repayment
Bank loans have fixed payment schedules. Policy loans let you set your own repayment terms. Pay it back quickly, slowly, or use dividends to reduce the balance over time.
Tax-Advantaged Access
Policy loans aren't taxable events because you're borrowing, not withdrawing. Your cash value growth is tax-deferred, and loans don't trigger capital gains like selling investments would.
“Don't steal from yourself by spending cash without calculating the true cost.”
Nelson Nash, Becoming Your Own Banker
Ready to Stop Losing Opportunity?
This calculator shows the concept. Let's discuss how IBC could work for your specific business purchases and financing needs.
Book a Free ConsultationNo pressure. No obligation. Just an honest conversation.