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Cash Value Account

May 19, 2022

Church leaders plan to accomplish Discipleship, Leadership, and Church multiplication. The question is: where will the financing come from?

Devout provides the tool to obtain the necessary finances. Devout gives Churches the right capital, longer time horizons, and much less risk. Devout is free. Churches only need to bring Devout to their members.

Remember: Devout does not sell personal financial products to members; we only exist to better donations and expand the Kingdom.

We disrupted charitable giving by using life insurance to multiply donations for immediate liquidity and longer-term endowments. Churches own the policy and are its beneficiary, so now additional benefits come into play, and the policy is tax-deductible for the member!

Uniquely, Churches will have cash value accounts they can borrow against to fulfill the mission.

Advantages of Borrowing Against Cash Value Accounts

1. Freedom to Use the Funds as You like

Churches typically borrow against these accounts to bring the Good News into their cities, expand community outreach, pay off a mortgage and increase the ministry. It is entirely up to you how to use the funds.

2. Tax-Free

As cash value builds in Devout’s policy, Churches can borrow against the accumulated funds. Life insurance policy loans have a distinct advantage: the money goes to your bank account tax-free.

3. No Need to Repay the Loan!

Another attractive aspect of loans against cash value is that you don't have to repay them, which is a huge benefit. There is no obligation to pay back. Think of how much better this is than taking loans from banks, lenders, or even taking loans that come from members! No one will feel burned. The consequence is that the legacy money down the road gets decreased, but it will still be there, and Churches will not owe a lender or suffer a penalty. With Devout, the cash value is the collateral against the loan, so it’s like borrowing from yourself.

4. Instant

Because the money is already within the policy and immediately available, it's a quick source of immediate funds, so you don’t have to go and look for it elsewhere.

5. Competitive Interest Rates and Terms

Your other loan options have much higher interest rates. With Devout, there are no loan terms such as repayment dates, renewal dates, or additional fees. Compared to traditional loans, life insurance policy loans can be very competitive. It is your money, you dictate, not someone else.

** Tip: Because Churches do not need to pay back loans on a specific timetable, it may help to set a personalized repayment schedule. This can ensure the loan is paid back to keep the interest down.

6. When a Member Can’t Afford the Policy’s Annual Premium

Churches don’t need to let a life insurance policy lapse because the member can’t afford the payment. A loan against the policy’s cash value can keep the policy in effect as long as the benefit is greater than the loan amount.

7. When the Member Stops Paying into the Policy?

With other forms of life insurance, previous premium payments will be forfeited. No one will receive anything for the prior payments. But here's the exception: with Devout, the policies will have built up equity for all payments made so that Churches may receive a lump sum payment.