Capital Deployment

Capital deployment is the act of putting borrowed policy loan proceeds to work in an income-producing asset or activity. In whole life banking, capital deployment is the mechanism that generates the return needed to justify the cost of the policy loan.

Common deployment types include real estate, private loans (promissory notes), business investments, equipment, and vehicle financing.

Each deployment in Policy Stack is a distinct record tied to one or more policy loans. You record the deployment type, asset description, amount, return rate, maturity date, and any associated cash flows. Policy Stack then calculates the spread between the deployment return and the loan rate.

Deployment is not the same as investment. Policy Stack is a tracking tool — it records the deployments you have already made or planned. Deployment records reflect actual or modeled capital movements, not guidance on where to put capital next.

Related terms: Spread, Capital Velocity, Policy Loan, Asset Type, Net Return