The best supported way to illustrate personal access to funds from a corporate-owned life insurance policy is to model the borrowing in the corporation and then pay the funds personally as a dividend.
Planworth does not support a dedicated workflow where an individual borrows personally using a corporate-owned policy or its cash surrender value (CSV) as collateral. This structure may create additional tax complexity, including a potential shareholder benefit and a guarantee fee that generally must be modeled separately and is often based on the prescribed rate.
Model the life insurance policy inside the corporation using the corporate insurance tools.
Enable the “Corporate CSV Loan” toggle to bring the loan proceeds into the corporation.
Enable the “Corporate Dividend Payout” toggle to distribute funds from the corporation to the individual.
Select CDA, eligible, or ineligible as the dividend type based on the applicable facts and available balances.
The “Personal CSV Loan” toggle does not provide a fully integrated way to collateralize personal borrowing with a corporate-owned policy. As a manual approximation, you could offset the corporate CSV loan proceeds with a non-deductible corporate expense and add a personal non-taxable inflow for the personal borrowing.
You could then add a personal major expense for the guarantee fee. This workaround requires the user to determine the appropriate tax assumptions and does not model the guarantee fee or related tax treatment as an integrated Planworth workflow.