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Buffer Assets: Do I Need Premium Financed Life Insurance?

We’ve all heard the stories of wealthy business owners, investors and even professional athletes and celebrities who frivolously spend their millions, only to end up broke.

It’s easy to look at the people this happens to and think, “That would never be me. I am too smart and careful with my money to ever let that happen.” That’s very likely true!

However, the goal isn’t simply to avoid going broke. It’s to build secure wealth that more than supports you and your family, long after retirement. 

As we manage today’s bear market, it’s more important than ever to keep making smart decisions about which assets to tap through varying market conditions and circumstances.

Utilizing buffer assets like premium financed life insurance is a smart way to handle your finances in the present while planning for the future, even in a downturn. 

If you’re wondering if premium financed life insurance is right for you, here’s what to consider.

How Premium Financed Life Insurance Helps Build and Protect Your Wealth

First and foremost, premium financing for life insurance ensures clients can obtain the strongest possible life insurance policy and utilize that policy as an asset.

Rather than simply purchasing a policy and viewing it as an expense, those who utilize this type of strategy understand one crucial thing:

Your life insurance is an asset that can build wealth while protecting you at the same time.

No one wants to worry about how market volatility will impact their ability to live off their retirement savings.

After all, the goal of retiring isn’t just to spend the minimum amount possible to stay alive.

You want to be able to use your money whenever you need it – regardless of what the economy looks like at the moment. 

To fully enjoy the fruits of your labor during retirement, a buffer asset like PFLI is necessary.

What are Buffer Assets?

Buffer Assets are investments that offers supplemental income when equity investments like stocks are experiencing a downturn.

Premium financed life insurance can serve as a great buffer asset due to its guaranteed downside protection.

It allows you to safely access income during poorly performing markets. 

When you draw from your buffer asset instead of your nest egg, you don’t have to worry about running out of money.

The benefits of a premium financed life insurance policy include:

  1. Historical yearly IRR of 8%-15%

  2. More flexible distribution options

  3. Tax-free income for retirement

  4. More of your money staying with your estate, and with your family

  5. Peace of mind during volatile markets

How Does Premium Financed Life Insurance Work, Exactly?

When you work with Enhanced Funding Solutions, we start by helping you secure a better life insurance policy that is carefully designed to improve your financial position.

We work with lenders to secure capital and enhance your contributions to efficiently improve policy performance. 

Next, you contribute a fixed annual amount to compliment the lender’s capital. EFS coordinates your annual contributions alongside the lender’s capital on your behalf.

The insurance company provides a return on the invested capital. 

Imagine you need a 7- or 8-figure life insurance policy. Over many years, this self-funded policy costs you tens of thousands of dollars.

Alternatively, premium financed life insurance offers tax-free growth and tax-free income during retirement.

With a historical yearly IRR of 8%-15%, this capital builds measurable wealth for your retirement.

Inflation Protection: Using PFLI as a Buffer Asset

The smart decisions you’ve made throughout your life are what have gotten you to where you are today. So, why stop now?

Keep making smart decisions for your financial future by exploring options for premium financed life insurance.

More and more strategic-minded individuals are choosing this approach for its simple and efficient structure that is the hallmark of any sound financial decision. 

Ultimately, premium financed life insurance is a great option for anyone who wants to use leveraged capital to grow their wealth, protect their assets, and streamline their legacy.

More importantly, this strategy is no longer reserved for the ultra-wealthy.

At EFS, we focus on our clients’ individual needs to help them explore their options.

Doing this means we can create a tailored plan that ensures financial health today, through retirement, and beyond.

Questions? I purchased my first premium financed life insurance policy over 17 years ago and I am happy to answer any questions you may have.

I look forward to hearing from you; email me at or call 773-318-9608.

Jeff Faine Enhanced Funding Solutions-8 - Buffer Assets



901 N Lake Destiny Drive, STE 380

Maitland, FL 32751


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