If you have several debts, it can feel like you are working hard and not getting anywhere. Most of each payment goes to interest, balances shrink slowly, and the finish line seems years away. The good news is that there is a structured way to pay debt off sooner without refinancing or consolidating, and without giving up the chance to build savings along the way.
Buckeye Life Group uses a planning system called Debt2Capital™ to help clients see all of their debts in one place, compare payoff strategies, and redirect savings into long-term capital when it makes sense for their situation. Here is how it works in plain English.
What This Is (and What It Is Not)
This is an insurance-based planning strategy. It is not a loan, a debt consolidation company, a credit repair or settlement service, or a government program. You keep your current debts and your lenders. You keep making your usual minimum payments, and we help you re-sequence and re-structure how you pay so more of your money works for you.
How It Works
- 1
Review your debts. We list every debt with its balance, minimum payment and interest rate, including credit cards, auto loans, student loans, personal loans and mortgages.
- 2
See what your debt really costs. We calculate your Effective Interest Cost (EIC), the share of your payments that goes to interest instead of reducing what you owe.
- 3
Redirect a monthly amount. Instead of sending extra dollars straight to creditors, you set aside a budgeted amount each month into a customized whole life insurance policy designed to build cash value.
- 4
Pay off debts one at a time. When the policy has built enough cash value to pay off your smallest debt, you and your agent are notified. Your agent helps you pay it off using a policy loan from the insurance company. Policy loans do not involve a credit application or credit check.
- 5
Keep the momentum going. The payment you were sending to that creditor is redirected to the plan, which repays the policy loan and builds capital faster. Then the process repeats with the next debt.
Why Your Effective Interest Cost Matters
Many people make only the minimum payments on their debts. Each debt has its own interest rate, so a large share of every payment can go to interest rather than principal. That is why balances can feel stuck. For example, if a person’s EIC is 45%, then about 45 cents of every dollar they pay is going to interest instead of paying down what they owe. Seeing that number clearly is often the first step toward a better plan.
Potential Benefits
- Faster, more efficient payoff: Using cash value to pay debts one at a time may shorten your payoff timeline compared to making minimum payments alone.
- Capital you can use later: Once your debts are paid off, the cash value you have built can remain available for future needs, such as a car, a home project or an emergency, so you may not have to borrow again.
- Clarity: Our software tracks your plan, models your payoff schedule and alerts you when it is time to pay off a specific debt, which takes the guesswork out of the process.
- Protection for your family: The policy includes a death benefit, and many policies include Living Benefits, which allow you to access a portion of the death benefit if you are diagnosed with a covered critical, chronic or terminal illness.
Is This a Good Fit?
This approach tends to work best for people who:
- have several debts, such as credit cards, auto loans, student loans or a mortgage,
- want to get out of debt sooner without giving up future financial goals,
- are committed to a long-term plan and to avoiding new debt along the way, and
- can qualify for a life insurance policy, since approval depends on your health and the insurer’s underwriting.
If you have fewer than three debts, the strategy may not look as strong, and we will tell you that honestly.
Things to Consider
- Long-term commitment: This is a long-term plan built around a permanent life insurance policy.
- Qualification: You must qualify for the policy. If one spouse does not qualify, we may be able to structure the plan on the other spouse.
- Policy loans: Policy loans come from the insurer, use the policy’s death benefit as collateral and accrue interest. Any unpaid balance and interest at death reduces the death benefit paid to your beneficiaries.
- Results vary: Payoff timelines depend on your debts, your monthly contribution, the policy’s performance and your commitment to the plan. No specific payoff date or outcome can be promised.
Why Choose Buckeye Life Group?
There are not many agencies that offer this kind of debt planning. We also offer life insurance, mortgage protection, safe money retirement planning and business solutions under one roof, so your plan is built around your whole financial picture. We work with you from the ground up, explain your options in plain language, and walk you through every step, with no pressure.
The Next Step
If your debt payoff feels slow and you would like to see what a structured plan could look like for you, book a free 30-minute call with Wendy. You will see Wendy and her screen, and no camera is needed on your end. We will review your debts together and talk through your options.
Example for illustration only; individual results vary. Subject to approval and carrier underwriting. Life insurance policy loans reduce the death benefit if not repaid. Consult your tax professional about your situation.
