The Financing Modeler compares three ways to pay for the same purchase: use savings, borrow from a lender, or borrow against policy cash value. This is a comparison tool, not an insurance illustration.
Set the purchase
Choose a quick-start example or your own plan, then enter the purchase name, amount, replacement timing, estimated trade-in value, and how many years to compare. Set replacement timing to 0 for a one-time purchase.
Set the funding assumptions
- Pay Cash: starting savings and its savings growth rate.
- Third-party financing: a separate savings growth rate, loan interest rate, and term.
- Policy loan: starting policy cash value, policy loan rate, annual base premium, and optional annual paid-up additions premium.
With payment matching on, all three paths use the same total cash contribution. Cash and lender financing add matched premium amounts to savings; whole life banking pays those premiums into the policy. The cash path also saves the lender payment during its loan term, financing pays the lender, and policy payments repay the loan before any payments after payoff go to paid-up additions.
Compare the outcomes
The results highlight both savings growth rates; when after-tax modeling is enabled, they also show the rates used in the calculations. The chart follows balances and cash put in over time. Its ending balance is savings for Pay Cash, savings less any lender loan for financing, and Net Cash Value (cash value less any policy loan) for whole life banking. “You put in” excludes purchases paid from starting savings. Interest paid is included in that total; unpaid policy-loan interest is added to the loan balance. Show the math opens one breakdown for all three paths, with interest paid to the lender or insurance company shown separately. The policy path also has a year-by-year table. PDF and CSV exports are available from the results screen.