Rightfully, intelligent people always want to know how Kai-Zen can possible work when you are borrowing tremendous amounts of money in a high-interest rate environment. This is just part of the beauty of using an indexed universal life (IUL) policy as the chassis for this program. IULs are guaranteed to never go down in value. Also, the insurance companies are earning more money on their own investments in seasons of high-interest rates.

When the insurance companies earn more, they are well-known for passing their good fortune onto their policy holders in the form of higher participation rates and higher cap rates. As the rate on the policy loan increases, so does the rate of return of the policy. There only needs to be a minimal margin between the return and the loan for the plan to work.

The insurance companies have gone to great lengths to stress test these plans. Inside each individual demonstration includes a test against the high interest and high inflation rates of the 1980s and against The Great Depression, when 9 of the first 12 years had negative returns. In those stress tests, Kai-Zen still wins.
(Guarantees are based on the claims-paying ability of the issuing company.)