Building Wealth With Life Insurance?

There are two main ways to build wealth with life insurance:

1. Self-Funded:?Contributing some extra money to your premium payments to overfund the policy, thereby earning interest on the extra cash value.
2. Premium Financed:?Contributing lump sums over 5, 7 or 10 years (instead of paying premiums for decades) then enhancing that cash value with a Lender Contribution (premium financing).

My firm specializes in both, with niche expertise in Premium Financed Life Insurance. We help our clients identify the best possible life insurance policy so they can overfund its cash value and earn interest on it.

How exactly does this work? Like this:

How to Build Wealth with Life Insurance

Historically, the typical IRR (Internal Rate of Return) has been between 8% and 15%. That means:

Overfunding your life insurance policy can enable you to earn interest. The interest builds tax-free wealth for you over time.

Unlike most other investments, it is unaffected by market downside risk. When stocks, 401ks and IRAs are down, your Life Insurance account will offer a steady stream of tax-free income.

Doing this means you don’t have to worry about income in a down market during retirement years – a very hot topic lately.

Why Choose Premium Financing over Self-Funded Solutions?

The answer to this lies in an individual person’s goals. Premium Financing offers the benefit of having a lender bolster the cash value, meaning your policy grows faster, and consistently.

Premium Financing enables you to secure an asset with? guarantees and a stream of income for the future.

To qualify for a premium financing loan, you have to meet certain criteria:

• Minimum household income of $200k per year
• Contribute a minimum of $35k for a fixed period, like 10 years or less

Alternatively, Self-Funded Solutions have minimal requirements because they have no premium financing loan for which to qualify.?This means an individual can add extra cash to the policy whenever they’re able to.?

While this method doesn’t have the notable benefit of quick and consistent growth, adding cash as it's available is the easier option for people who might not want or be able to commit to 5, 7 or 10 years of lump sums.

We work with our clients to find the best possible policies that enable them to overfund based on their current stage in life. Questions? Reach out any time: [email protected] or 773-318-9608.