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How To Use a Leveraged Life Insurance Policy for Retirement Income  

Are you considering expanding your portfolio with a leveraged life insurance policy?

Secure, accessible income is top of mind for everyone. For those at or nearing retirement, this is especially relevant.

With the market in such a volatile state, fixed assets are key for enjoying a comfortable retirement.

You know retirement income is a serious issue when the news covers “How to Find a Job in Your 70s” at the top of the hour.

You can avoid this scenario by leveraging your life insurance as part of your retirement planning. It’s an asset and it should be working for you.

In this post, we break down what you need to know in order to expand your portfolio with a leveraged life insurance investment. 

Qualifications and Asset Requirements for Leveraged Life Insurance Policies

Premium Financed Life Insurance, also known as leveraged life insurance, has typically been reserved for the ultra-wealthy

Now, many business owners, entrepreneurs, doctors, lawyers (and so on) are learning about this financial strategy. If you’re seeking more ways to secure income for retirement and protect your wealth, here’s how to qualify for premium financed life insurance.

First, determine the type of leveraged life insurance policy you are qualified to hold. This type of investment is a great supplement to an already established portfolio.

General minimum requirements are: 

  1. $200,000 minimum annual household earnings

  2. $35,000 annual contribution

When the housing market is hot and interest rates are up, it can be cumbersome to pour liquid assets into property investments. 

A premium financed life insurance policy requires only a fixed contribution (5, 7 or 10 years) to support the total premium.

Then, your life insurance policy’s value is collateral. A lender enhances your contribution with leverage capital for investment.

Next, the client contributions + the lender’s capital funds your policy.

Lastly, the insurance company provides a return on the total amount contributed into your policy.

Seeking more details about how Premium Financed Life Insurance works? Click below to download our free PDF with case studies.

Leveraged Life Insurance Policy: Deferred Enhanced Funding (DEF)

Certainly, investing for retirement should include tax breaks. The same is true for leveraged life insurance policies.

Firstly, the net return grows tax-free income and has an average Interest Rate Return (IRR) between 8% and 15%. 

Secondly, the returns on the invested capital are available tax free. Clients have unrestricted access to these funds.

It’s important to maximize growth while mitigating risk if you are investing for retirement.

For this reason, premium financed life insurance policies are a valuable addition to your plan. 

Researching Leveraged Life Insurance Policies

As with all financial considerations, it’s crucial to do your research and weigh all of the options. Enhanced Funding Solutions is highly experienced and singularly focused on Premium Financed Life Insurance. 

In other words, we have the skill and dedication to help financial advisors, insurance agents and individuals identify the best policies in each specific situation.

Working with us means each client gains a passionate, knowledgeable and devoted teammate. We focus on working with the whole team to help our clients reach the strongest financial position.


Learn more about how to leverage life insurance for retirement income; here are three things to consider:

  1. Determine if you qualify for a leveraged life insurance policy.

  2. Wealth building for retirement should include benefits from tax breaks now, your overall estate, and your family’s future.

  3. Work with an experienced, competent, reputable firm or advisor you trust.



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