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Can I Invest in Life Insurance?

The short answer is: Yes, you can invest in life insurance. The strategy of premium financed life insurance is, put simply, investing in life insurance.

Life insurance policies are an asset, which means their value can be leveraged to earn tax-free income for the policyholder.

The income is also unrestricted – meaning it works like a checking account. The policyholder can access this income without penalties or fees instead of touching other investments and potentially taking a loss.

So, how does this all work? I’ll explain.

How to Build Wealth Like the 1%: Invest in Life Insurance

Most people pay a yearly premium for their life insurance decade after decade, hoping never to need the policy.

Typically, people contribute the bare minimum each year, meaning the policy has no additional cash value.


By investing in your life insurance policy, you contribute a larger-than-needed sum of cash. 

The insurance company pays you interest on the overfunded value.

We take things a step further by leveraging the value of the policy to enhance your earning power. Premium Financing is the strategy of using your life insurance policy as collateral for a loan.

The more you invest in (overfund) your life insurance, the greater your returns.

The 1% have known this for, well, forever. Very wealthy people have always taken out life insurance policies and then overfunded them with premium financing to reap the incredible tax benefits.

However, this strategy is NOT just for the mega-rich.

The minimum threshold to qualify for our program at Enhanced Funding Solutions requires clients to primarily have household earnings of $200,000 per year.

Why Add Leverage to Your Life Insurance Policy?

Many people initially think “Why would I take out a loan for life insurance?” before they learn the strategy.

Consider this: If you had $300k to invest in real estate, would you rather buy a single-family property and generate one renter’s income, or use that same $300k to take out a $1M mortgage for a five-unit property?

The additional income on the five-unit property will more than cover the mortgage, and that investor can build wealth much faster.

Premium financed life insurance follows this same logic.

Why earn interest on $300k when you can leverage it for $1M – earning interest that more than covers the loan – enabling you to generate income much quicker?

More Benefits of Investing in Life Insurance: Save on Taxes and Interest Rates

Unlike most life insurance policies, our focus is wealth building–in addition to standard protection.

One of the best advantages of premium financed life insurance policies is double tax advantages! People seek out the opportunity to invest in life insurance because you do not pay taxes on the growing interest being paid to you NOR do you pay tax on your distributions.

Most importantly, people who invest in life insurance have access to that income whenever they need it. There is no penalty for accessing the account. 

Premium Financed Life Insurance flips the standard. Your life insurance policy should be making you money, not costing you money. It should not only be protecting your wealth, but growing it as well.

When to Invest in Life Insurance

The best time to invest in life insurance is now. Whether you want to diversify your portfolio, or want to save cash reserves, starting this type of investment sooner than later is recommended. The longer you leave your invested policy untouched, the larger the value grows.

As with any investment, there are things you must know and factors to consider before making any kind of decision.

When a potential client or an established client contacts me, I always guide them to help select the best option in order to invest in life insurance.

Generally, life insurance policies exist to protect and provide a legacy for an individual’s family.

For those who want to combat inflation, investing for retirement with premium financed life insurance is an excellent way to plan for the future life you want to live.

Growth is possible. Diversify your portfolio and invest in an additional opportunity.


Specifically with my firm, the most important standard is outstanding customer service. I, along with my team, work with you. We will always prioritize your goals, risk tolerance, and timeline. We are here to answer your questions.

Now that you have a general understanding why and how to invest in life insurance, discover ways Enhanced Funding Solutions can work for you.

Learn more about how Enhanced Funding Solutions can help make your money work smarter and harder for you. Reach out any time: or 773-318-9608.


901 N Lake Destiny Drive, STE 380

Maitland, FL 32751


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