Minimizing Taxes on Life Insurance Policy Loans for Private Lending

[Andrew Yu]

This question is about Infinite Banking concept. For the tax experts here, when I take a policy loan on life insurance for private lending, how should I structure it to minimize taxes?

[Zachary Paschke]

Quote from @Andrew Yu:

This question is about Infinite Banking concept. For the tax experts here, when I take a policy loan on life insurance for private lending, how should I structure it to minimize taxes?

Generally unless the policy is a MEC loans are not taxable. 

a MEC is a Modified Endowment Contract and would mean that the cash put into the policy was too much too soon for the IRS’s liking. If you’re policy is a MEC you would have been notified.